Compass and Redfin have announced a significant three-year partnership that will grant Compass’s "Coming Soon" listings priority placement on Redfin.com. This deal allows Compass to showcase off-market properties on Redfin without the usual ‘days on market’ or ‘home value estimate’ data, aiming to increase listing visibility and provide sellers with more marketing flexibility.
Key Takeaways
- Compass "Coming Soon" listings will now appear at the top of Redfin search results, alongside Redfin’s own brokerage listings.
- The partnership aims to expose these listings to nearly 60 million users across both Compass and Redfin platforms.
- Compass agents will receive buyer leads from Redfin, and Rocket Mortgage will offer Compass clients mortgage incentives.
- This move reverses Redfin’s previous stance of not displaying listings unless they were publicly available on all sites.
A New Era for Listing Visibility
The new agreement enables Compass to list its "Coming Soon" properties on Redfin immediately, with "Private Exclusives" to follow. A Redfin spokesperson confirmed that these Compass listings will receive preferential treatment, appearing prominently in search results. This strategic move is designed to satisfy the requirement for "publicly marketed" listings while offering sellers a controlled introduction to the market.
Expanded Reach and Benefits
By leveraging the combined user base of Compass.com and Redfin.com, the partnership anticipates reaching approximately 60 million potential buyers. Compass International Holdings stated that this alliance could potentially bring over 500,000 additional home listings to the market, offering homeowners greater choice and flexibility without the immediate pressure of public market data.
Furthermore, the collaboration extends benefits to Compass agents, who will receive buyer leads generated through Redfin. Additionally, Rocket Mortgage, which acquired Redfin last year, will provide Compass clients with a 1% interest rate reduction for the first year of their mortgage or a lender credit up to $6,000.
Shifting Market Dynamics
This development marks a significant shift from Redfin’s previous position, where it aligned with Zillow in refusing to share listings that were not publicly accessible across all platforms. This earlier stance was a response to an update in the National Association of REALTORS®’ Clear Cooperation policy. Redfin had previously suggested the creation of a "coming soon" designation for off-market listings, a concept now realized through this agreement with Compass.
Zillow’s Competitive Landscape
The announcement comes shortly after a setback for Compass in its antitrust lawsuit against Zillow. A federal judge denied Compass’s motion for a preliminary injunction, allowing Zillow to maintain its ban on off-market properties. A Zillow spokesperson commented on the dynamic nature of the real estate market, emphasizing their focus on innovation and long-term value for stakeholders.