Key insights
- Redfin and Zillow are launching 'coming soon' listing programs, increasing transparency in the housing market. This could lead to increased activity and potentially higher prices as buyers gain earlier access to inventory. The impact on US equities is slightly positive, as a healthier housing market generally supports broader economic growth.
Zillow and Redfin are launching programs in which agents and sellers have the option to publicly market listings on the platforms before they transition to an active status.
The Zillow Preview program, launching in April, will allow agents at participating brokerages to make listings publicly visible on Zillow, Trulia and their own brokerage and agent sites during the preview period. The listings will be exclusively shown on these sites and will receive priority placement in search and save-home alerts.
Initial partners in the program include Keller Williams, REMAX, HomeServices of America, Side and United Real Estate.
"In a growing number of markets, the public cannot see pre-market homes, including listings often referred to as 'coming soon.' Zillow Preview brings these homes out of the shadows and into the daylight, making them publicly visible instead of confined to closed systems, while working within MLS frameworks and supporting brokers and agents in complying with local rules," Zillow said.
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All Zillow Preview listings will be required to have at least one listing photo, the price, the full address and specifications of the property, as well as a listing description. They must also include information on taxes and homeowners association fees, showing instructions, the listing contract date — when the home's seller signs an agreement with the brokerage — and the date it's expected to go on the market.
Consumers viewing Zillow Preview listings will be able to contact the listing agent directly, through the "contact agent" button, or schedule a tour after the listing becomes active with a Zillow Preferred buyer's agent through the "schedule a tour" button.
The program comes after nearly a year of backlash over Zillow's Listing Access Standards policy, which bans any listings that have been publicly marketed to consumers but not entered into the Multiple Listing Service within one business day of being marketed, from appearing on its platform.
Zillow updated its Listing Access Standards policy alongside its announcement of Zillow Preview to address evolving "pre-marketing" tactics, but maintains its stance that publicly marketed listings should be broadly accessible to all buyers.
Zillow's announcement also came just a day after a similar program went into effect on Redfin. Its parent company, Rocket Companies, and Compass International Holdings teamed up to exclusively display "coming soon" listings by Compass and Redfin agents on the website as of March 16. It is expected to expand to include other CIH brands, including Christie's International Real Estate and Corcoran, later this year.
Participating listings will be prioritized in search results on Redfin, and the listing agent's contact information will appear on the listing. If a potential buyer submits a "contact agent" form on Redfin for a Compass "coming soon" listing, the listing agent will have 24 hours to claim the buyer lead before it gets sent to an agent in the Compass Leads Program.
Eligible buyers working with a Compass agent will also have access to Rocket Preferred Pricing, which offers either a one-percentage-point interest rate reduction for the first year of the loan or a lender credit of 0.75% of the loan amount up to $6,000.
"When barriers are removed and supply grows, affordability improves," said Rocket Companies CEO Varun Krishna. "Today's challenge is friction in the homebuying process and a lack of inventory. By bringing search, agents and financing into one connected platform, we can help more sellers enter the market, reduce complexity for buyers and make homeownership more attainable."
Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.
This article originally appeared on NorthJersey.com: Redfin, Zillow launch programs to publish 'coming soon' home listings