Lawmakers move to restrict private listings in Washington

Lawmakers in Washington state are weighing in on the real estate industry’s private listing debate. On Monday, state legislators introduced a bill that seeks to amend an existing state statute related to real estate licensing laws by restricting the use of private listing networks in the state.

The bill describes itself as “an act relating to prohibiting real estate brokers from marketing residential properties to an exclusive group of prospective buyers or real estate brokers, unless the residential property is also concurrently marketed to the general public and other real estate brokers, except as reasonably necessary to protect the health or safety of the owner or occupant.” Additionally, it describes the practice of marketing a listing to a limited group as “unfair.” 

Under the proposed bill, a broker is not allowed to market the sale or lease of a residential property to a “limited or exclusive group of prospective buyers or brokers,” without simultaneously marketing the property to the general public and all other brokers. Additionally, the bill also states that “brokers who represent a seller must market residential property to all members of the public and all other brokers and may not market the property to an exclusive group of buyers or brokers.”

However, the bill includes a carve out to permit the limited marketing of a property, allowing for the practice when it is “reasonably necessary to protect the health or safety of the owner or occupant.” 

Washington Realtors has come out in support of the bill, which has bipartisan support and is sponsored by State Senators Marko Liias (D), Chris Gildon (R), Jessica Bateman (D), Emily Alvarado (D) and John Braun (R). 

Washington Realtors comments

In an emailed statement, a spokesperson at Washington Realtors told HousingWire that the organization is committed to advocating for bills and policies that support the association’s members and their clients. 

“The intent of the proposed legislation is to promote transparency, fairness and equal access in the residential real estate market by requiring all listings to be marketed publicly and be available to all brokers,” the spokesperson wrote. “Our top public policy priority has consistently been to build communities that have a strong economy and attractive, affordable home choices – our North Star for our advocacy efforts is making Washington the most consumer-friendly state in which to buy and sell real property. Washington Realtors is supporting this bill because it’s another step toward that goal.”

Washington is not the only state to take legislative action aimed at the usage of private listing networks. In early December, Wisconsin Governor Anthony Evers signed what was formerly known as Assembly Bill 456 into law.

Under the new law, which is slated to go into effect on January 1, 2027, public marketing of a property is the accepted default. According to the law, which reflects many aspects of the National Association of Realtors’s (NAR) Clear Cooperation Policy (CCP), a property listed by a licensed real estate professional must be marketed broadly online within one business day of the listing agreement unless the seller affirmatively opts out by completing and signing a disclosure and opt-out form created by the state’s Department of Real Estate. 

In a post about the legislation, Jennifer Lindsley, Wisconsin Realtor Association’s director of legal services and licensing, wrote that, what was then just a bill, was focused on transparency, including a seller’s right “to know exactly how their home will be marketed,” and acknowledging that they “must make that decision with full understanding of the consequences.”

Marketing transparency

“How broadly a property should be marketed has become a hot topic in real estate. Supporters of wide exposure argue that it ensures fairness, transparency and competition — giving all buyers an equal opportunity to see available listings,” Lindsley wrote. “Others believe sellers should retain flexibility to market privately, limit showings or pursue niche strategies. This legislation strikes a balance by giving sellers control and ensuring they make informed choices.”

Zillow, which enacted its own listing standards policy last April that bans properties from its site that have been publicly marketed for more than 24 hours before being available for display on other IDX or VOW data feed powered sites, also told HousingWire it supports both the Washington bill and the new Wisconsin law. 

“We’re glad to see Washington put forward a bill that would have it join Wisconsin as a national leader in establishing pro-consumer protections to ensure that everyone has fair and open access to real estate listings at the same time,” a Zillow spokesperson wrote in an email.” Hidden listings worsen the housing affordability crisis by making it more difficult for buyers to navigate the market and causing sellers to lose out on potential offers, and they leave smaller brokerages at a disadvantage. Zillow believes listing transparency is beneficial to all, whether you’re a buyer, seller, agent, or part of the real estate industry as a whole, and we support policies and initiatives that align with that belief.”

Compass speaks out against the bill

Unsurprisingly, Compass, which is currently suing Zillow, as well as the Kirkland, Washington-based Northwest MLS (NWMLS), over their respective listing policies, called the bill a “veiled attempt by NWMLS and Zillow to preserve their market dominance by restricting homeowner choice and limiting competition, to the detriment of sellers and agents alike.”

When asked about involvement with the bill, a Zillow spokesperson reiterated that the listing portal giant is supportive of the bill. An NWMLS spokesperson did not comment on the MLS’s involvement in the creation of the bill, but they wrote that the MLS does support the legislation

“For years, Northwest MLS has supported industry rules and state legislation to increase transparency for consumers and advance real estate brokerage practices in Washington. Northwest MLS shares the concerns related to private listing networks expressed by Senator Elizabeth Warren and Senator Ron Wyden in their recent letter to the U.S. Department of Justice and the Federal Trade Commission,” the spokesperson wrote. “As such, Northwest MLS fully supports Washington Realtors’ efforts to modernize the statutory framework in Washington to advance fair housing, further promote transparency, and ensure consumer and broker access to property listings.” 

The Compass spokesperson added the the brokerage “believes Washington homeowners deserve the same flexibility to choose when and where to market their homes as homeowners in every other state.”

“Every other state offers flexibility that allows homeowners to test pricing, gain critical positioning insights, retain their privacy and confidentiality and generate early demand without public price reductions or days on the market,” the spokesperson wrote in an email.

The spokesperson also noted that the firm “fully supports” and complies with all fair housing laws.