Last week I asked all of you “Will the Compass Lawsuit with Zillow radically alter the way real estate is bought and sold in the United States?” The real estate pros have spoken and as you can see from the chart, the vote was pretty close 55% saying there would be a big impact while 45% saying no/little impact. The comments were fascinating on both sides of the debate.
Summary of the rationale behind the impact of the Compass lawsuit on the real estate market:
Here are the top comments:
- Roll up will occur Risk of monopoly, on certain segments lower prices as less exposure in middle inventory Good for high end inventory Less brokers may be needed may be able to control inventory better
- Zillow was trying to act as market oversight. Demonstrating the power they have over the market. This demonstrates how online resources to buy and sell properties will continue to expand reducing the need for realtors
- The NAR lawsuit was supposed to radically change real estate. The rise of the discount broker and limited service broker was supposed to radically change real estate. Crypto was, the aging boomers were, the millennials were, the crash in ‘08 was… let’s just say I’m skeptical
- Top Comment: If Real Estate consolidation continues to firms holding their listings to only their brokerage or websites, we will see what happened with streaming and cable. Everyone will cut cable but then have to have every streaming service in order to get all the shows they want. The time suck of having to check every brokerage site for new listings will get old fast and they’ll re-create the MLS.
Key insights on the impact of the Compass lawsuit
Thank you everyone for your participation and insights in my survey. The insights in the comments from readers were amazing and I hope everyone gained a good perspective from your fellow readers. My key takeaway from this survey is that there will be some winners and losers. For example some high end realtors will gain as they consolidate information on top listings while the middle market will not be impacted as much as many listing will end up on MLS anyway. Unfortunately we don’t know yet how everything will play out, but the consolidation of data will ultimately lead to consolidation of brokerages throughout the US as we are seeing today. As one comment noted, the real estate listing model could evolve like the cable model with various services you have to check in order to find the right listings which will cause more work and lead to less efficiency in the market.
We will have to wait for better data to see how it all shakes out. Thanks again and stay tuned for upcoming surveys 😊
Additional Reading/Resources:
- https://www.fairviewlending.com/big-changes-to-how-real-estate-is-bought-and-sold/
- https://www.fairviewlending.com/2026-real-estate-predictions/
- https://www.fairviewlending.com/when-will-real-estate-crash-or-will-it/
- https://www.fairviewlending.com/what-does-the-iran-war-mean-for-real-estate/
- https://www.fairviewlending.com/has-the-economy-lost-its-mind/
- https://www.fairviewlending.com/will-mortgage-rates-fall-in-2026/
- https://www.fairviewlending.com/where-should-you-invest-in-real-estate-in-2026/
- https://www.fairviewlending.com/fed-drops-rates-why-did-mortgage-rates-barely-budge/
- https://www.fairviewlending.com/phantom-debt-soars-what-does-this-mean-for-real-estate-2/
- https://www.fairviewlending.com/never-buy-a-residential-condo/
- https://www.fairviewlending.com/the-war-on-landlords/
- https://www.fairviewlending.com/house-prices-hit-another-record-should-you-even-care/
- https://www.fairviewlending.com/root-cause-of-real-estate-price-declines/
- https://www.fairviewlending.com/will-real-estate-fall-to-2020-values/
- https://www.fairviewlending.com/washington-inflates-credit-scores-and-another-housing-bubble/
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Glen Weinberg personally writes these weekly real estate blogs based on his real estate experience as a lender and property owner. I’m not an armchair reporter/writer. We are an actual private lender, lending our own money. We service our own loans and own commercial and residential real estate throughout the country.
My day job is and continues to be private real estate lending/ hard money lending which enables me to have a unique perspective on the market. I don’t accept any paid sponsorships or ads on my blog to ensure accurate information. I’ve been writing this for almost 20 years and have over 30k subscribers. Please like and share my blogs on linkedin, twitter, facebook, and other social media and forward to your friends 😊. I would greatly appreciate it.
Fairview is a hard money lender specializing in private money loans / non-bank real estate loans in Georgia, Colorado, and Florida. We are recognized in the industry as the leader in hard money lending/ Private Lending with no upfront fees or any other games. We fund our own loans and provide honest answers quickly. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games).
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
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