Zillow's New FSBO Policy: What It Means for Home Sellers 🏡

Introduction

Zillow has long been a pivotal player in the real estate market, providing a platform for home buyers and sellers to connect. Recently, Zillow has implemented a significant change to its policy concerning For Sale By Owner (FSBO) listings. This update requires that any home marketed to consumers must be listed on a Multiple Listing Service (MLS) and made publicly accessible on platforms like Zillow within one day. This move is designed to ensure equal exposure for all home buyers and to counter practices where properties are selectively marketed before broader release.

Zillow's Updated Policy Details

The core of Zillow's updated policy is the mandate for property listings to be included on the MLS. This requirement ensures that all listings gain the same level of visibility and are available to the public promptly, preventing any unfair advantage for certain buyers or sellers. By enforcing this rule, Zillow aims to create a more equitable marketplace where every potential buyer has access to the same information.

Discontinuation of Postings API

In addition to the MLS requirement, Zillow has discontinued its Postings API. This tool previously allowed FSBO and other manually posted listings to be displayed on partner sites like Redfin. With the discontinuation of this API, platforms such as Redfin will no longer feature FSBO listings sourced through Zillow. This change marks a shift towards more standardized and centralized listing practices.

Implications for FSBO Sellers

For homeowners looking to sell their properties without the assistance of a real estate agent, these changes present new challenges. Without direct access to major platforms through the Postings API, FSBO sellers must now navigate the MLS system to ensure their property is visible to a wide audience. This shift may encourage more sellers to consider working with real estate professionals to gain MLS access.

Conclusion

The updates to Zillow's FSBO listing policy are poised to have a significant impact on the real estate market. By requiring MLS listings and discontinuing the Postings API, Zillow is pushing for a more transparent and fair marketplace. While these changes may pose challenges for FSBO sellers, they ultimately strive to create a level playing field for all participants in the housing market.

References

Zillow to bar publicly marketed listings not shared via MLS