Zillow vs MRED: A Battle That Must Be Fought
This fight was written in the stars
I think Zillow can be forgiven if it feels like the main character in a 2010 comedy action film. You fall for this hottie named iBuying, and the next thing you know, you’re setting up to fight what seems like the entire world.
The latest news is that Zillow is tangling with MRED, the Chicagoland-area MLS and the 8th largest in the country by subscriber count. From Inman:
Zillow’s private listings policy is coming for the Windy City, and Chicago brokers appear ready to fight back.
On Monday, Inman learned that the region’s multiple listing service, Midwest Real Estate Data (MRED), sent an email to its managing brokers related to Zillow’s Listing Access Standards, which target publicly marketed private listings.
The correspondence was a response to murmurs around Chicago that privately marketed listings — notably those on MRED’s Private Listing Network — would be banned from Zillow. However, MRED told Inman Monday that the ban has not yet taken effect in Chicagoland, and a copy of the email obtained by Inman showed MRED firing back at Zillow.
Ever since NAR took a beating in federal court and folded like a cheap suit, there was an open question as to “Who Rules?” the industry. Zillow filled the vacuum when it promulgated ZLAS and transformed from a mere vendor to a regulator. But the industry is ruled via control of the MLS since the MLS was always the enforcement arm of NAR.
Which means that this fight between Zillow and the MLS was fated to happen. It makes sense that the opponent is MRED, since MRED has been the most vocal about its support for private listings.
I don’t know who is going to win this fight, but it would be useful for everyone to understand the motivations, understand what each side can bring to the fight, and what the possible outcomes of this battle could be. Because whatever happens here, the real estate industry will not look the same afterwards.
This is going to get very long. You may need to click through and come read it on the website.
Let’s get into it.