Zillow Bans Private Listings: What Does it Mean for Buyers and Sellers?

Have you heard the news? In a move that’s already sparked intense debate across the real estate industry, Zillow has officially banned private listings from its platform. The company claims this shift is part of a broader effort to “create a more transparent and competitive real estate market.” But for many agents and sellers, it raises a more pressing question: Why should a tech company get to decide the strategy behind your home sale?
Because here’s the thing — sellers deserve the right to choose how their property is marketed. And as you know, the approach to positioning your home often begins long before it ever hits the public eye.
Powered by this nuanced perspective, brokerages like Compass have rolled out an intentional three-phase marketing approach designed to serve the seller’s best interest over any platform’s algorithm. For many listings, that means launching privately to test price and build demand via a Private Exclusive listing, followed by Compass Coming Soon, a public preview available only on Compass.com. Finally, the listing goes live on the full open market via the Multiple Listing Service—at which point it would have traditionally syndicated to Zillow. This controlled exposure often leads to sharper pricing, more discerning buyer targeting, and less time on market.
Curious about our intentional marketing approach? Read these posts next:
- How the Compass 3-Phase Marketing Strategy is Selling Homes Faster and for More Money
- What’s it Like to Sell Your Home with Compass DC?
Zillow, however, doesn’t benefit from that kind of multifaceted, dynamic gameplan. As a lead generation business, Zillow’s revenue depends on one factor alone: its ability to maximize public-facing inventory to drive traffic and sell leads. So, when homes are marketed in a way that doesn’t pass through their portal, it disrupts their visibility and monetization model all at once. In short: if they can’t show it, they can’t sell your lead. Why? Because Zillow earns money by charging agents to appear next to listings in specific ZIP codes or by taking a referral fee when a connection they facilitate results in a closed deal. Under this model, every listing essentially becomes ad space — and fewer listings mean fewer opportunities to convert buyer attention into tangible revenue. And for many (including us), this is why the ban feels less like a play for fairness and transparency — and more like a push to regain control.
Our team made the decision years ago to cut ties with Zillow for precisely this reason: we don’t believe they operate in the best interest of agents or consumers. You can read more about our decision to unsubscribe from Zillow right here.
Here’s the reality: sellers hire agents to represent their needs, not Zillow’s. And that advocacy includes advising every client on the optimal strategy to maximize their bottom line — whether it’s through traditional public marketing or a more discreet off-market approach. In truth, most homes do end up on the open market, but the underlying constant is that the seller should always have the power to decide on the right path for them.
But don’t just take our word for it — here’s a look at the data that justifies why we stepped away from the platform’s pay-to-play model years ago:
- Zillow accounts for only ~3% of home sales nationally
- Over 90% of buyers work with agents who search the MLS, not Zillow
- Our team’s own buyer traffic from Zillow this year? Minimal.
- Most serious buyers don’t rely on portals to find homes — they rely on their agents to guide them
On top of that, Zillow’s listing features can actually work against you by highlighting:
- Days on market
- Automated (often inaccurate) price estimates
- Price reduction history
- Negative listing characteristics
These factors can encourage lowball offers — or worse, keep buyers from touring altogether. In contrast, a thoughtfully phased launch lets sellers control the story.
For buyers, this shift limits visibility into the full picture of what’s available. When platforms like Zillow restrict listings that don’t go fully public right away, it creates the illusion that fewer homes are for sale — when in reality, many may still be in private or pre-market phases. Serious buyers who rely solely on Zillow could miss out entirely on homes that would have been a great fit, simply because those listings never make it to the portal. The takeaway? Now more than ever, having a trusted agent with access to off-market inventory and pre-MLS insights is key to staying competitive and informed.
With Zillow’s latest ban and new industry rules in place, agents and sellers now face tighter restrictions than ever before. The outcome of these limitations? A Compass Private Exclusive listing that is publicly marketed or in Compass Coming Soon status for more than one business day without hitting the public market can trigger a violation and ultimately be banned from appearing on Zillow’s website during the duration of the listing agreement.
In fact, Compass agents have already started receiving warning notices like these:


These alerts make it clear: sellers are being pressured to go public fast — or risk removal from certain platforms altogether.
At the end of the day, this isn’t just about rules — it’s about who’s in control. You and your agent? Or a portal that sells your data instead of your home?
At Jenn Smira & Co., our stance is simple: how your home is sold should be your choice. Whether that means staying private, going public, or navigating both phases strategically — we’ll guide you through it every step of the way. After all: we don’t work for Zillow. We work for you. And we’re here to make sure you and your home get the personalized approach that not only reflects your goals, but delivers the results you deserve.
Looking for a seamless selling strategy designed to get results? Get in touch with us today by filling out the form on this page, calling us at 202.280.2060, or emailing connect@jennsmira.com today.

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