Windermere responds to Compass’ collusion accusation in real estate listings lawsuit

This story originally appeared on Real Estate News.

The antitrust lawsuit brought by Compass against Northwest Multiple Listing Service last week makes a number of claims centered around competition and consumer advocacy in real estate. The outcome of the case — should a jury side with Compass — could have major implications for Washington state and beyond. 

While Windermere, a major Seattle-based franchisor, wasn’t named as a defendant in the suit, the company was mentioned 14 times throughout the 39-page complaint filed April 25. Compass has repeatedly alleged that Windermere and NWMLS colluded to halt pre-marketing and private exclusives to the detriment of the brokerage giant and area home sellers — claims that Windermere has denied, while countering that Compass is the one harming consumers.

Windermere ‘confused’ about claims of collusion

Compass CEO Robert Reffkin has been vocal about the number of Windermere brokers on the NWMLS board, referring to the MLS in a March Instagram post as “a brokerage-owned trade group controlled by Windermere.” 

In the April 25 complaint, Compass lawyers — which include NAR’s former lead antitrust attorney Ethan Glass — argued that all brokerages who have member agents on the NWMLS board are “co-conspirators with each other and NWMLS.”

But in a statement shared with Real Estate News, Windermere Co-President OB Jacobi suggested the claim was simply inaccurate. “We are confused as to why Windermere Real Estate Services Company was mentioned in Compass’ complaint at all. Windermere Real Estate Services Company is a franchisor, not a brokerage,” Jacobi noted.

The company, he said, does not hold six board seats and isn’t even a member of NWMLS — a broker-owned organization. Instead, those six members affiliated with Windermere are independent franchise owners who operate their own businesses and “generously volunteer their time to serve” on the board, he said.

Jacobi previously told Real Estate News that Reffkin’s allegation of board collusion was “complete BS” and challenged Compass to get more of its affiliated agents and brokers voted to the board and work within the formal process. 

“I wonder why Robert didn’t try and work with the MLS to change the rules that he wanted changed, rather than threatening lawsuits and then saying it’s Windermere’s collusion on the board that’s creating these rules,” he said earlier in April.

A fundamental disagreement on what is best for consumers

Another issue Jacobi and Reffkin have been sparring over is what is ultimately best for consumers. Compass lawyers doubled down in the complaint on the benefits of its 3-phase marketing strategy, which include preventing days on market from accruing, something Compass has previously described as a “negative insight” that disadvantages sellers. 

Jacobi, however, argues that obscuring listing information and access is bad for buyers and sellers alike. “We continue to reiterate our position that what would truly be anti-client is a lack of transparency brought on by a blanket policy that encourages private listings, creating what amounts to a secretive network that only benefits the privileged few, and the Wall Street-driven brokerage looking to double-side sales for the benefit of their stock price,” Jacobi said in the emailed statement. 

“No one should be allowed to bully our industry into undoing decades of progress towards a more fair and equitable housing environment for everyone.”

Other industry leaders and experts weigh in

Reffkin and the Compass faithful continued to press forward over the weekend across social media channels arguing for their side of the issue. But many other industry leaders and experts also offered their input. 

“I hate to say it, but [the Compass complaint] reads like a cross between a press release for its 3-phase marketing plan and a whiny diatribe by a brokerage that didn’t get its way,” Tanya Monestier — a University at Buffalo School of Law professor who has previously weighed in on other consumer protection issues in real estate, including buyer agreements — wrote on  LinkedIn.

“Robert’s actions have pissed off the NWMLS [board] so much, I doubt they will back down either. I expect this to be a drawn out, expensive conflict for everyone. Where does it end up in the end? Trial,” NextHome CEO and podcaster James Dwiggins remarked in a separate LinkedIn post. 

“This whole thing is going to end badly for everyone when sellers feel harmed by this ‘off-MLS’ practice becoming mainstream and they file a class action lawsuit against the brokerages and agents pushing it,” Dwiggins added.