Why do we Stand With Compass? What the Zillow Lawsuit Means for You as a Seller.
On June 30th Zillow started the so called ZILLOW BAN. Zillow will bar noncompliant listings from appearing on Zillow.com and Zillow Group-owned Trulia.com. Redfin also followed.
As a luxury real estate advisors here in Hawaii, one of the most powerful things we can offer clients is choice — in how we market your home, when we list it, and who we expose it to. That flexibility is a key part of how Compass operates — and it’s one of the reason we are proud to be part of a company that’s now standing up for those very freedoms.
On June 23, 2025, Compass filed a federal antitrust lawsuit against Zillow, claiming that its listing practices are harming competition and limiting seller and agent choice. At the center of the issue is a policy Compass refers to as the “Zillow Ban” — a rule Zillow enforces that prevents listings from appearing on its platform if they haven’t first appeared on Zillow or an MLS within 24 hours of being marketed elsewhere.
For those of us working directly with sellers every day, this isn’t just about tech policies or corporate battles — it’s about preserving the freedom to design a marketing plan that serves the seller’s best interest.
Compass uses a phased marketing approach that gives our clients flexibility and power: we start with a Private Exclusive, move into Coming Soon, and then launch to the full public MLS. This structure allows sellers to test the market, protect their privacy, and time their launch in a way that builds momentum (for more details, please read our blog about Compass 3-phase Marketing Strategy).
Zillow’s policy undermines that by forcing sellers and agents to follow a rigid timeline. If a seller wants to delay full market exposure, Zillow simply won’t show the listing — even when it does become public. It’s a policy that removes strategic control from the people who know the listing best.
Here’s why this matters to You as a Seller:
- You lose control. This rule limits your ability to test, preview, and pace your home’s launch.
- It pressures conformity. Rather than marketing based on your personal goals, you’re forced to follow rules designed to benefit a platform.
- It penalizes thoughtful strategy. If we choose a phased plan based on your needs, Zillow can block your home from reaching its audience.
We’ve personally helped clients sell using Compass’s Private Exclusive system for a wide range of reasons: family transitions, renovations still underway, financial timing, or simply a desire to ease into the market quietly. In every one of those cases, the client appreciated the privacy, testing period, and strategic flexibility. These aren’t loopholes—they’re smart tools that exist for a long time to helped sellers achieve better outcomes.
One of our favorite examples? Our dear clients—and now friends—Mike and Cyndi K. Their journey perfectly illustrates how a thoughtful, private approach can lead to a seamless experience. We had the privilege of helping them sell their first home in Hawaii before it even hit the market, creating a smooth and comfortable transition tailored to their specific timing and needs. They wanted quiet marketing and our network clicked with the marketing strategy.
A year later, when they realized there truly is no better place for them than Hawaii, we helped them return—this time finding their forever home off-market as well. It was not our listing or Compass listing but we were able to secure the perfect house through our network of colleagues.
Read their full testimony:
We have had the pleasure of working with Emil and Kai on 2 different transactions, one as buyer, one as seller. They provided the most excellent service. The counsel they gave us regarding upgrades to make and even recommending the tradespersons to complete them were excellent, and made for a beautiful presentation. The home we sold went for significantly over asking before it even hit the MLS.
The purchase of our new home was flawless, even though we were on the mainland for the entire transaction. All of the stresses of buying and selling were greatly mitigated by their prompt attention to every item, from showing to closing.
My wife and I were both Realtors® in California previously, and we have never seen nor experienced better representation than that provided by Emil and Kai. Thank you both for your excellent service!
Mike and Cyndi K
Zillow argues its policy promotes transparency. But what it really does is protect its dominance in the real estate portal ecosystem, ensuring every home starts with them or not at all. Their ultimate goal is to protect their business model of selling leads to agents. Compass believes that homeowners deserve options, and real estate agents should have the freedom to customize their strategy that best suit clients without being punished.
This lawsuit isn’t about publicity. It’s about defending the kind of strategic marketing that we believe in. It’s about advocating for clients like you — who deserve a plan tailored to your needs, not dictated by a third-party website.
If you’re considering selling and want to explore a smarter, more personalized strategy — one that aligns with your goals and market conditions — We are here to help. Let’s talk about your options, your timing, and how Compass’s approach might serve you better than a one-size-fits-all listing rule.
You deserve choices. We are here to protect them.
Sources & Further Reading
If you are interested in learning more about the Compass vs. Zillow lawsuit and what’s at stake in the broader real estate landscape, here are some helpful articles from reputable outlets:
- Compass sues Zillow over private listings ban – Inman
- Compass is Suing Zillow Over New Listing Rules – Barron’s
- Compass files lawsuit against Zillow over home listings policy – AP News
- Compass sues Zillow for allegedly stifling competition – Reuters
Also we recommend checking Robert Reffkin’s Instagram and LinkedIn.