Lamacchia: “I will file charges” Compass, MLS if there is a list fight

Anthony Lamacchia is not directly involved in the battle between Zillow, Compass and MLSs. But as the dispute moves from MRED in Chicago to Realtracs in the Southeast, the Massachusetts real estate agent owner says he’s keeping a close eye on the trend.

As the leader of a large regional brokerage that operates in eight MLSs, Lamacchia is the kind of broker-owner who could be directly affected if the battle for private listings and portal distribution spreads beyond the industry’s biggest players. And if an MLS shuts down Zillow’s feed in its markets because of Compass or the broader listing battle, Lamacchia told Inman he would press charges.

This interview has been edited for length and clarity.

Inman: Last week, MRED shut down Zillow’s feed, and now Realtracs has threatened to do the same. What happens now? Do you think there will be others?

Anthony Lamacchia: I’m surprised to hear that an MLS would do that on its own. That tells me there’s some kind of friction between that particular MLS and Zillow that may have nothing to do with the bigger picture — or maybe it doesn’t. I don’t know the details of that.

With MRED it was clear to me that Compass was pulling the strings. It was three weeks after they made a deal with them. So I don’t know why it would happen with Realtracs. But the reason these things are even in the discussion is because of Robert Reffkin and his attempts to put more business into his companies.

I respect Robert. I respect his companies. We do a lot of business with his companies. So he is a very worthy competitor who I respect, but I disagree with him on this particular issue. I don’t think this is the best for buyers and sellers. In fact, it’s not just me who thinks so – me know it is not the best for buyers and sellers.

If properties don’t get maximum exposure the vast majority of the time, sellers don’t get maximum exposure and not all buyers get access. That’s a problem. That is not good for the consumer.

It seems like more brokers, or at least broker leaders, are warming up to pre-marketing. What is your opinion about that?

Lamacchia: They don’t necessarily warm up to it. They do it because they feel like they have to, and they don’t want Compass to sound like they have a competitive advantage that they don’t, because that could potentially hurt a brokerage with recruiting or with buyers and sellers.

There have always been situations – and our agents do that too – where a seller says, “I’m not going to list for a month. If you want to offer it to people you know, fine. But I don’t want to go on the market until July.” This has been happening in the real estate sector since the beginning of time.

What Robert [Reffkin] describes is very different. He wants the ability to advertise when they want, never on the open market, and only sell properties on Compass.com. We don’t try that. We want the properties to get maximum exposure. There are areas where he has so much market share that I can understand why he’s trying to do that, but again, I know it’s not good for buyers and sellers.

If Compass hoards all the listings of the Compass companies in the areas where I do business, we and other brokers will be forced to do the same in return. We’re not going to share ours if they don’t share theirs. And for companies like mine, that are big enough, we have the power to give them headaches.

What would you do if an MLS you’re a part of cuts off Zillow’s feed due to pressure from Compass or the broader Zillow-Compass fight?

Lamacchia: If Compass somehow convinces one of the MLSs we are a part of to cut off the Zillow feed, I will undoubtedly sue that MLS and Compass. I’m not going to stand for our listings not getting the maximum exposure, and I’m certainly not going to stand for a competitor to influence where our listings are shown.

I think there are others who would have done that in the MRED situation, but it only lasted about 30 hours, so by the time most people knew what was going on, it was over. But if that happens in the markets in which we operate and where a competitor influences the MLS – whether by force or some form of influence – to stop the listing feed to Zillow, I will sue Compass and that MLS within days.

Is your position because you side with Zillow, or is it about something else?

Lamacchia: The sellers would suffer damage. That would be my biggest concern. Secondly, I would also be concerned about the business we receive from Zillow. Secondary.

I’m not always on Zillow’s side. I’ve been suffering from it on and off for years. We are currently their customer. From 2018 to 2022, I didn’t even do business with Zillow. Over the years we have been offered to use Zillow Flex. We said no.

So I understand Robert’s points and some of his concerns about the power that Zillow has. It worries me too. However, I don’t agree that these things should be hoarded to a brokerage in a massive way. I understand there are one-off sellers here and there. But what he’s talking about is something that will dismantle the system.

You’ve said before that this could be the next big antitrust battle in the industry. Can you explain this?

Lamacchia: If the system is dismantled and brokers start hoarding properties, we will inevitably end up in antitrust lawsuits for not allowing access. In addition, I see fair housing lawsuits coming.

Who are we? Who are we as real estate agent owners to determine who can view our properties for sale and who cannot? We shouldn’t do something like that.

What about the idea of ​​exclusivity, especially in markets like Chicago where inventory is tight and there’s an argument that scarcity or exclusivity can equal more value?

Lamacchia: If inventory is very low, it is much easier for a seller and a broker to get away without maximum exposure. Now we are in a situation where the inventory of homes for sale is increasing. As inventory increases, sellers want maximum exposure. This applies more to real estate agents.

By the time we get to this fall, there will be a plethora of listings across the country that aren’t selling nearly as fast as they used to. It happened last fall too. It will happen again this fall. We are well on our way. We now have more stock than a year ago. So as inventory increases, it will be much harder and much less tempting for agents, brokers and home sellers to track a listing in an exclusive way.

But I want to be clear. I understand there are one-off cases here and there. I was the #1 real estate agent in Massachusetts in 2010 at the age of 29, selling the most homes. I’ve sold a number of houses for police chiefs, sheriffs and news anchors. We’ve had a number of sports athletes. So I understand there are some unique cases where they are a little more concerned.

But guess what happened to all those people? They went to the open market. There could have been something more subtle in the way we did things, or a delay due to preparation. I get it. But the masses should list on the open market when they are ready.

Again, I respect Robert and I understand his views, but I disagree with him on this particular point. I think he has emphasized the issue too much.

And let me say something else. What Robert says and what Compass officers actually do on the street are two different things. The vast majority of Compass agents I’ve seen – and certainly all Anywhere brands – don’t hoard property. Robert talks about it more than it actually happens, and maybe that’s part of his plan.

And your position represents one of the MLSs you are a member of?

Lamacchia: No question. If they shut down the Zillow feed because there’s a dispute about Zillow, or if Zillow does something outrageous, fine. But if the feed is clearly removed because of a pissing contest between Compass and Zillow, and what Robert is trying to do, I will be suing Compass and that MLS within a few weeks, guaranteed.

I wouldn’t stand for that. A competitor won’t stand in the way of where my offerings are marketed – that won’t happen.

You mentioned that big enough companies could be a headache if this turns into a stock market war. What happens to smaller brokers?

Lamacchia: The small brokers will have a real problem. If a stock market war breaks out, they will have a real problem. You will see all the small brokers disappear and join all the big brokers, and we will turn into the airlines. That’s exactly what James Dwiggins said.

I don’t think that will happen. I think Robert is making noise to gain influence and get his point across. But I’m willing to bet he won’t go so far as to start a legitimate listing war across America. I know he’s a smart guy. He is a smart businessman. I don’t think he’ll do that.

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