Zillow vs. Compass: What This Lawsuit Means for Virginia Real Estate
As a Realtor based in Richmond, Virginia, I’ve always believed that transparency and flexibility are key to serving clients well. That’s why the recent lawsuit filed by Compass against Zillow has caught my attention—not just as industry news, but as a potential shift in how we market homes across Central Virginia.
In June 2025, Compass sued Zillow over a new listing policy that blocks properties from appearing on Zillow if they’ve been publicly marketed for more than one business day without being entered into a multiple listing service (MLS). Compass argues this rule unfairly targets its three-phase marketing strategy, which includes private exclusives before MLS syndication. You can read more about the case .
For agents in Richmond and surrounding areas—especially those of us working in boutique brokerages or using creative listing strategies—this lawsuit could have real implications.
📉 Will Private Marketing Lose Visibility?
In neighborhoods like The Fan, Church Hill, and Westover Hills, it’s common to build buzz around a listing before it hits the MLS. Whether it’s through email previews, agent networks, or private showings, these strategies help sellers test the waters and attract serious buyers. But under Zillow’s new policy, listings that don’t go straight to the MLS could be excluded from the platform entirely.
That’s a big deal in Virginia, where Zillow remains one of the most trafficked real estate sites. If Compass loses this case, agents may be forced to abandon pre-MLS marketing altogether—limiting seller options and reducing exposure for unique or high-value properties.
🧑💼 Brokerage Power Plays and Local Impact
Compass is currently merging with Anywhere Real Estate, a move that could make it the largest brokerage by agent count. This lawsuit is partly about who controls listing distribution—and whether platforms like Zillow can dictate how we market homes. If Compass wins, it could empower brokerages to use proprietary tools and strategies without fear of suppression. If Zillow prevails, it may centralize listing power even further. For Virginia sellers, this raises the strategic question: Do either of these arguments really advocate for sellers? As always, I think the answer is somewhere in the middle and dependent upon each situation.
For Virginia agents, this raises strategic questions: Do we double down on personalized, narrative-driven marketing, or adapt to a more Zillow-centric funnel? We shall find out soon enough.
🔍 What Should Sellers Know?
If you’re planning to sell your home in Richmond or anywhere in Virginia, it’s important to understand how listing visibility works. A home that doesn’t appear on Zillow may miss out on thousands of views. But a rushed MLS entry could mean missing the chance to build early interest or test pricing.
As your agent, I’ll help you navigate these changes—balancing exposure with strategy, and making sure your listing gets the attention it deserves.
🏡 Final Thoughts
This lawsuit isn’t just about two big companies—it’s about how we serve our clients. I’ll be watching the November 18 injunction hearing closely and will keep you updated. In the meantime, if you’re thinking about buying or selling in Richmond, let’s talk about how to position your property in a shifting digital landscape.
For more updates on Virginia real estate trends, follow my blog or reach out directly. I’m here to help you make informed, confident decisions—no matter what changes come our way.