Published July 11, 2025

How pre-marketing can hurt your home sale

Written by Jessica Sternberg

How pre-marketing can hurt your home sale header image.

Market Exposure: How the Zillow, Compass & NWMLS Lawsuits Affect Your Home Sale

If you’re planning to sell your home soon, you should know there’s a legal battle brewing between Zillow, Compass, and the Northwest Multiple Listing Service (NWMLS) and it could affect how your home is seen by potential buyers.

 

While these disputes may sound technical, they actually impact a key piece of your home selling strategy :

Market Exposure (how and where your home appears online).

 

🔒 Private Listings vs. Public Visibility

Compass, a large real estate brokerage, offers sellers a marketing option called a “Private Exclusive.” This lets you quietly share your home with a small group of buyers before going fully public. It’s popular with sellers who value privacy, need time to prepare, or want to test pricing.

But NWMLS, which oversees home listing rules in much of Washington state, doesn’t allow homes to be marketed privately without being shared with all other brokers. When Compass tried to use Private Exclusives, NWMLS pushed back and even temporarily suspended Compass’s listing feed.

 

📉 Zillow’s New Policy: Less Wiggle Room

Zillow also created a new rule often called the “Zillow Ban.” If your home is mentioned publicly (even in a social media post or email), but not listed on the NWMLS within one business day, Zillow may remove it permanently from their site.

Compass argues that this hurts sellers by forcing them to go public too soon. Zillow says it ensures fairness and transparency for buyers.

 

Why this matters:

If you try to quietly market your home before it’s officially listed, it may never appear on Zillow, which is where the majority of buyers begin their home search. That could dramatically reduce your home’s exposure especially in the early days of your sale.

 

🧭 What Sellers Should Do

In this shifting landscape, here’s how to stay in control of your home sale:

  • Talk to your agent about listing strategy. Ask how your home will be marketed, when it will go live on the NWMLS, and whether it will appear on Zillow and other sites.
  • Understand timing rules. A simple mistake like talking about your listing before it's in the NWMLS could keep your home off Zillow entirely.
  • Choose a plan that fits your goals. Whether you want maximum exposure from day one or a more measured rollout, make sure your marketing approach lines up with the latest platform and NWMLS policies.

 

In Summary

Your home deserves smart, strategic exposure. But right now, lawsuits and policy changes between Compass, Zillow, and NWMLS are changing how and when listings reach buyers. Make sure your agent stays up to date and helps you choose the best path to market your home effectively in today’s evolving real estate world.

 

For more info please do not hesitate to contact me!

 

Jessica Sternberg

206.459.1970

Jessica@DawnRushton.com

 
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