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Compass rental lawsuit spotlights risks in private listing practices
The article cites research that MLS-off deals sold 1.3% less and that MLS-marketed homes can sell about 17.5% more than comparable off-MLS listings.
HousingWire highlighted a proposed federal class action against Compass filed by two Manhattan renters on August 21, alleging they paid about $880 a month over the median asking rent after inventory was pulled from StreetEasy and routed agent-to-agent instead of being shown publicly. The piece argues the problem is not limited access itself, but the lack of clear seller disclosure about what the research says a limited launch is likely to cost. It recommends a signed one-page disclosure that covers the marketing sequence, independent research, seller rationale, and a fixed MLS transition date, framing it as a way to reduce exposure to downstream claims. HousingWire also points to multiple studies on potential pricing and timing impacts. It cites Zillow analysis of more than 15 million sales from 2023 through 2025 showing homes sold off the MLS went for 1.3% less, about $1.36 billion overall left on the table, with lower-priced homes giving up 2.2% and homes in communities of color down 1.9%. The article adds that Bright MLS and Drexel University found MLS-marketed homes sold for about 17.5% more than comparable off-MLS properties, or roughly $54,000 for a typical seller.
It further notes Bright MLS chief economist Lisa Sturtevant found homes first marketed as office exclusives took about two weeks longer to go under contract than homes listed directly on the MLS, with no evidence they sold for more. The column also references an analysis of thousands of sales from 2018 through 2024 showing double-ended transactions closed at 6.36% over list price versus 8.06% for other deals, with the seller’s premium about a fifth smaller.