Data Duel

As Matt and I discussed on this week’s Property AI Report (PAIR) Podcast (available on Apple, Spotify and everywhere else!), things are getting very tasty in the States regarding property data – and who gets access to it.

This is a battle that will likely play out across the world. Previously dominant portals like Rightmove and REA Group will become ever-more antsy about how they can retain access to the all-important property listing data in a world where a. most agents hate them because of their brutal charging practices and b. the data is worth increasing amounts in the world of AI.

The basics of the current story are that Compass, a real estate agent broker brand, has developed a three-stage marketing process for their sellers which involves listing the property on their own website before the portals. Zillow – the Rightmove of the US – has strongly objected to this, as it means that there is a selection of properties that are not available to it. I say ‘strongly objected’ – they’ve gone absolutely nuclear.

First, they’ve told Compass that any of its properties which are not listed on the Zillow website within 24 hours of being launched to market – including the moment that a signboard goes up outside the house – will NEVER be allowed to advertise on Zillow. Then, they’ve been phoning any agent that uses Compass’ three-stage strategy to warn them that they’re serious – their vendors will not see their properties on Zillow, EVER.

Compass, for their part, have sued Zillow for anti-competitive practices. It likens the ‘Zillow Ban’ (as it refers to the rule) to Amazon demanding that shops put their products on their site within 24 hours or never. For its part, Zillow accuses Compass of removing buyer choice from the market, hiding listings and disadvantaging certain groups who may not realise that there are other sites with unique content.

It all seems, perhaps, a little bit overboard. But at its heart is something significant.

If Zillow can’t get access to these listings then they start to fall apart as the default portal for most people in America. Buyers will have to go to Compass too. It’s like back in the day when, at Primelocation, we had our agent members’ properties on exclusively. This kept Rightmove’s strength tempered, at the time (early 2000’s) – they were pretty much locked-out of London and the top-end of the market.

I would not be remotely surprised if other major portals around the world start to sneak something like this into their terms and conditions in the next couple of years. Their influence will wane in the world of AI – and they’ll try and force agents to continue to list with them regardless of what the agents themselves want to do.

Now is a good time to start experimenting with alternatives, I’d suggest – so that when that day comes, you’ve got options …