Key facts
- Compass CEO Robert Reffkin defended private exclusive marketing strategies.
- Reffkin stated that 43% of homes on the market in September had price drops.
- He claimed that 6% of homes were taken off the market last month.
- Reffkin argued that MLSs negatively impact listing perceptions.
- Compass plans to sue CRMLS and Unlock MLS.
- CRMLS has filed a suit against Compass.
Compass International Holdings CEO Robert Reffkin is warning sellers about the potential downsides of listing homes on the open market, citing concerns about price drops and extended days on market. In a CNBC interview, Reffkin stated that 43% of homes on the market in September had experienced a price drop, and 6% were removed from the market because sellers did not want them to appear "stale."
Reffkin defended Compass's private exclusive marketing strategy, arguing that Multiple Listing Services (MLSs) unintentionally make listings look "damaged" by displaying negative insights. He also reiterated claims that MLS boards are anti-competitive, dictating how agents and clients can market homes. Reffkin asserted that sellers have the right to choose their marketing methods, which can include private exclusives marketed through various channels beyond real estate websites.
These comments follow Reffkin's threat to sue MLS executives who prevent or fine Compass agents for marketing office exclusive listings. Both California Regional MLS (CRMLS) and Unlock MLS have refused these demands. CRMLS has filed a lawsuit seeking to prevent Compass from suing them over alleged antitrust violations, and Compass has stated its intention to file lawsuits against both MLSs in the coming weeks.