Reffkin about the list strategy of Compass: what is the disadvantage?
During the profit call of Compass first quarter of 2025 on Thursday, Reffkin was opened by double the opposition of the company against CCP. He repeated his conviction that sellers deserve to have a choice in how their property is brought to the market. And he answered his own proverbial question.
“There is no disadvantage,” he said. “The worst thing happens is that a homeowner gets an offer, and they have the chance to reject it and go to the public sites with the benefit of pricing discovery through pre-marketing. That is the disadvantage, which means that there is no disadvantage.”
CCP is a rule of the National Association of Realtors (NAR) For which real estate agents have to place a list on a NAR-Lied Multiple Listing service (MLS) within 24 hours after the property is marketed elsewhere.
This process serves as an obstacle for the mission of Compass to build an inventory of exclusive offers, because the mention of agents forces to choose between the compass website and the MLS. And with Zillow Taking its own version of CCP, choosing the MLS also means choosing Zillow.
The drama around CCP has not prevented compass growing. The market share of the company reached a record high, rose a year ago from 4.47% to 6% of all home sales in Q1 2025. The number of main agent rose to 20,656 at the end of March, an annual increase of 41.6%.
That increase is mainly driven by the acquisition by the company of Christie’s international real estate And @features In December, in which Compass paid with $ 150 million in cash and around 44 million shares of its shares.
Turnover increased from $ 1.1 billion in Q1 2024 to $ 1.4 billion in Q1 2025. The operational cash flow was positive for the fifth quarter in a row and reached $ 23 million. Yet the company suffered a net loss of $ 51 million, although it has fallen considerably compared to the loss of $ 132 million in the same quarter last year.
Reffkin acknowledged when calling that economic headwind influences the housing market. The threats of rates of President Donald Trump in March – and the actual rates he implemented in April – influence the behavior of consumers, although he believes that the market will be in accordance with 2024.
While the real estate sector reduces the attack by Reffkin on CCP, the three -in -house marketing plan of Compass is maintaining. The percentage of his offers that are ‘private exclusive’, which is the first phase, has steadily increased.
These offers do not appear on the Compass site, but if they are not sold in that period, they will go in the second phase called “Coming Soon”, which places them on the site. In the third phase, the offer is on the MLS and third parties sites.
