Scrolling on Zillow? You’re not alone!
Searching Zillow is one of the internet’s favorite pastimes - right along with Instagram and Tic Tok. Many people who visit Zillow aren’t even looking for a home, they’re just curious and daydreaming. The site has a powerful hold on the market and last week the Real Estate Brokerage, Compass, filed a federal antitrust lawsuit accusing Zillow of trying to create a “Zillopoly” by controlling how and when listings appear online.
At the center of the case is a new Zillow policy, set to take effect today, June 30, 2025, that blocks listings from Zillow (and partner sites like Trulia) if they’ve been publicly marketed outside the MLS (Multiple Listing Service) for more than 24 hours. This is meant to prevent Sellers from selling their properties as “pocket” or “off market” listings.
Compass argues the rule unfairly targets brokerages that use phased or private launch strategies, approaches many sellers rely on for privacy, positioning, and pricing insight.
WHY IT MATTERS:
In markets like Montecito and Santa Barbara, where discretion, strategy, and timing are the cornerstones of a successful luxury listing sale, Zillow’s new policy could negatively impact sellers.
THE ZILLOW BUSINESS MODEL:
Since launching in 2006, Zillow has built its platform using listing data sourced directly from realtors via the MLS without compensating the realtors who create and pay for the content. To generate revenue, Zillow created the "Premier Agent" program, where real estate agents pay to appear alongside listings they may not represent.
This pay-to-play setup can confuse consumers who think they are talking to a listing agent when in fact the agent often does not know anything about the listing. This program shifts control away from sellers and their listing agents - which seems to not be in the best interest of consumers. Often, the Premier Agent has no knowledge of the listing, leading to miscommunications and negatively affecting how listings are represented.
THE BOTTOM LINE:
The “Zillow Ban” may not eliminate private listings, but it could pressure brokerages to abandon custom marketing strategies that benefit sellers.
• Zillow says it’s about transparency.
• Compass says it’s about control.
As the battle over the “Zillow Ban” plays out, one thing is clear: in markets like Montecito and Santa Barbara, sellers don’t benefit from a one-size-fits-all approach. Real strategy requires local expertise, knowledge and inside information, not national algorithms.
What happened in Montecito Last week?
JUNE 22 - JUNE 28
weekly spotlight
Your Summer Guide to Montecito & Santa. Barbara
From parades and outdoor concerts to movie nights and wine festivals, summer on the Central Coast is brimming with ways to celebrate the season.
🎬 Montecito Movies on the Mirador - June 30
Free outdoor screening of Everything Everywhere All at Once at Hotel Californian’s terrace.
🎶 Kiwanis Music Nites at Elings Park - July 3 & August 7
Live music, BBQ, local vendors, and community fun.
🎷 Concerts in the Park - July 3, 10, 17, 24
Enjoy local bands like The Molly Ringwald Project and Soul Majestic in parks across SB.
🎆 Independence Day Celebration - July 4
Fireworks over West Beach, live music, and festivities throughout the waterfront.
🎥 Free Summer Cinema at the Courthouse - Fridays, July 11 – August 29
Outdoor movie nights under the stars at the Sunken Gardens. This year’s theme: Dog Days of Summer.
🍷 Beachside Wine Festival (California Wine Festival) - July 18 – 19
Taste premium wines and bites by the beach with live music and ocean views.
🎻 Music Academy Summer Festival - June 15 – August 9
Eight weeks of orchestral concerts, masterclasses, and recitals in Montecito and downtown SB.
🇪🇸 Old Spanish Days Fiesta - July 30 – August 3
Parades, flamenco dancing, Mercado de la Guerra, rodeo, and community celebrations throughout SB..
