As a Compass real estate agent here in wine country, I've had countless conversations over vineyard tours and tasting room visits about the recent headlines: "Compass Sues Zillow." My clients—whether they're vintners in Healdsburg, tech executives with weekend retreats in Calistoga, or families looking to downsize in Sebastopol—all want to know the same thing: What does this mean for me when I'm ready to sell my home?
Let me pour you a glass of clarity about this legal battle that's shaking up the real estate world, and why it matters deeply to anyone considering selling their home in our unique wine country market.
The Real Estate Giants Are Clashing (And It's Not Just About Egos)
In June 2025, the realtor brokerage company I am affiliated with, Compass Real Estate, filed a federal lawsuit against Zillow in New York, and trust me, this isn't just corporate drama. This lawsuit could significantly impact how your home is marketed and sold. As a seasoned luxury real estate agent from SoCal and currently the Napa Valley I’ve helped dozens of families navigate the sale of everything from historic Victorian farmhouses to modern hillside estates, I can tell you that how and where your listing appears online isn't just technical jargon—it's the difference between getting top dollar and settling for less.
The heart of this dispute? Zillow implemented what we call the "Zillow Ban"—a rule that states if your home is marketed anywhere online, it must appear on Zillow within 24 hours; otherwise, Zillow will ban it from their platform entirely. Given that 80% of home buyers start their search on Zillow, you can see why this matters enormously.
Why This Hits Close to Home in Wine Country
Here in Sonoma and Napa counties, I deal with a unique real estate market. The vineyard estate isn't just another commodity listing—it's a lifestyle, a legacy, sometimes a working business. The way I've been able to serve our wine country clients through Compass' three-phase marketing strategy has been game-changing, and Zillow's new rule threatens to eliminate the very tools that help us maximize value for sellers like you.
Let me explain how this typically works with a hypothetical property. A family is selling their boutique winery property, let’s say near Glen Ellen. Using Compass’ three-phase approach, I’d start with a private listing phase, testing the market quietly among serious buyers who understood the unique value of a small-production wine operation. During what Compass calls their "private exclusive" property, I’d connect with several qualified buyers.
This “private exclusive” listing allows my client and me to gauge genuine market interest and refine the pricing strategy before moving to the "coming soon" phase, where I would showcase the property on Compass's platform to build anticipation. Finally, the property listing would go live across all platforms. The result? It could be sold for 8% above the original asking price to one of those early private-phase buyers.
Under Zillow's new rule, that strategic “private exclusive” phase would be virtually impossible. The moment we market the property as "coming soon" on our Compass platform, we'd have 24 hours to post it on Zillow, eliminating the controlled, strategic approach that helped our sellers maximize their return.
How can I make my Property a Compass Private Exclusive?
Are you a home seller and curious how your property fares on the market before going public?
What Zillow Is Really After (And Why Compass is Fighting Back)
Zillow's position is straightforward: "When a listing is publicly marketed, it should be accessible to all buyers across all platforms, including Zillow." They argue they're promoting transparency and preventing a "fragmented market." On the surface, this sounds reasonable, even admirable.
But here's what's happening: Zillow makes money every time someone clicks on a listing, requests information, or connects with an agent through their platform. By forcing all listings onto their site immediately, they ensure that they capture every potential lead and commission opportunity. As our lawsuit states, "The Zillow Ban is designed to make it hard, indeed nearly impossible, for home sellers to sell their home outside of Zillow, to force all listings to be on Zillow where Zillow makes money selling leads off the homeowners' listings."
From my perspective, working with wine country clients, this isn't about transparency—it's about control. When I'm marketing a $3 million Pinot Noir vineyard or a historic Craftsman in downtown Healdsburg, my sellers deserve a marketing strategy tailored to their unique property, not one dictated by Zillow's revenue needs.
The Three-Phase Strategy That Serves Wine Country Sellers
Let me walk you through why Compass's marketing approach has been so practical for our local market, and why Zillow's interference threatens to diminish your options as a seller.
Phase One: Private Exclusive Testing
This quiet phase allows us to test market response among serious, pre-qualified buyers. For unique wine country properties, this is invaluable. We're not dealing with cookie-cutter suburban homes here—we're marketing properties that might appeal to a particular buyer: someone looking for a weekend retreat, a serious wine collector, or an entrepreneur wanting to enter the wine business. This phase helps us understand actual demand and adjust our strategy accordingly.
Phase Two: Coming Soon Anticipation
During this phase, we showcase your property exclusively on Compass's platform, building anticipation and capturing buyer interest before the broader market gets involved. This controlled exposure helps create urgency among serious buyers while allowing us to gather feedback and refine our approach.
Phase Three: Full Market Exposure
Finally, we launch across all platforms, armed with the intelligence and buyer interest we've built during the previous phases.
As of February 2025, approximately 35% of all Compass listings were utilizing the "Compass Private Exclusive" or "Compass Coming Soon" phases—a testament to the value sellers find in this strategic approach.
Want to learn more about how the Compass 3-Phase Strategy can work for you?
When you’re ready, let's schedule a conversation to discuss how this strategy can benefit your property.
What Zillow Gets Wrong About Wine Country (And Why It Matters to You)
Zillow's platform treats all homes like commodities, complete with automated "Zestimates" and "Climate Risk" assessments that often fail to assess unique properties accurately. Try explaining to Zillow's algorithm why a 1920s stone winery building adds value, or why that "flood risk" designation doesn't account for the sophisticated drainage systems installed during a recent renovation.
As noted in our lawsuit, many sellers choose our three-phase marketing route because homes listed on Zillow are displayed with "negative insights," including a "Zestimate" that estimates the property's value and a "Climate Risks" section that may not accurately reflect the reality of their unique property.
I've seen Zillow's Zestimate value a historic vineyard estate at 40% below market value because their algorithm couldn't correctly account for the wine-making equipment, established grape contracts, and brand value. Meanwhile, their climate risk assessment flagged a beautifully restored farmhouse as high-risk for flooding, when in reality, the property sits on elevated land with excellent drainage—facts that are not reflected in automated assessments.
The Bigger Picture: What This Lawsuit Means for Your Future Sale
This isn't just about Compass versus Zillow. It's about whether sellers will have choices in how their most valuable asset gets marketed, or whether one dominant platform will dictate the terms for everyone.
If Zillow's rule stands, here's what changes for wine country sellers:
Reduced Strategic Options
The private and coming soon phases, which have helped our clients maximize value, would be severely limited or eliminated.
Less Personalized Marketing
Instead of tailored strategies for unique properties, we'd be forced into a one-size-fits-all approach dictated by Zillow's timeline.
Potential Value Loss
Without the ability to strategically build buyer interest and test market response, sellers may end up accepting lower offers or selling in less favorable conditions.
Reduced Agent Expertise
If all listings must follow the same pattern, the value that experienced local agents bring to marketing strategy diminishes significantly.
Looking Forward: What to Watch
As this lawsuit progresses through federal court, there are several key outcomes to monitor:
Immediate Impact
While the legal battle continues, Zillow's rule is in effect. This means we're currently working within these constraints, though we're exploring creative approaches to continue serving our clients effectively.
Potential Settlement
There's always the possibility that Compass and Zillow reach a settlement that preserves some flexibility for strategic marketing while addressing Zillow's concerns about transparency.
Industry-Wide Changes
Regardless of the lawsuit's outcome, this dispute is likely to prompt broader discussions about fair competition in real estate technology and marketing practices.
Regulatory Response
Federal regulators may take an interest in the competitive dynamics highlighted by this lawsuit, potentially leading to broader policy changes.
What This Means for Your Wine Country Property Sale
If you're considering selling your wine country property in the coming months, here's my advice:
Work with an Experienced Local Agent
Now more than ever, you need someone who understands the unique aspects of our market and can navigate the changing landscape of listing rules and platform requirements.
Understand Your Options
While the Zillow rule limits some strategies, experienced agents are finding ways to maximize exposure and value within the new constraints.
Focus on Quality, Not Just Quantity
With broader immediate exposure required, it becomes even more crucial to ensure your property is presented perfectly from the outset.
Price Strategically
Without the ability to test market response privately, initial pricing becomes more critical than ever.
The Bottom Line for Wine Country Sellers
This lawsuit raises a fundamental question about choice and competition in the real estate industry. As Compass CEO, Robert Reffkin, said, "This lawsuit is about protecting consumer choice." Working with wine country clients every day is precisely right.
You deserve to have options when selling your property. You deserve agents who can employ the full range of marketing strategies to maximize your return. And you deserve a competitive marketplace where the dominance of any single platform doesn't stifle innovation in service delivery.
Whether we're talking about your family's vineyard, your weekend retreat in the hills, or your downtown Sonoma home, these aren't just transactions—they're transitions in your life story. The way your property gets marketed should reflect its unique value and your specific goals, not the revenue needs of a tech platform.
As this legal battle unfolds, I'm committed to keeping my clients informed and continuing to provide the highest level of service possible within whatever framework emerges. The wine country real estate market has always been about relationships, expertise, and understanding what makes each property special. No lawsuit or platform policy can change that fundamental truth.
As a Compass agent specializing in wine country properties, I'm here to help you navigate both the current market conditions and the evolving landscape of real estate marketing. Whether you're curious about your home's value, considering a sale, or just want to understand how these industry changes might affect you, I'm always available for a conversation—preferably over a good local vintage.
For more information about this lawsuit and its implications, or to discuss your wine country real estate needs, please don't hesitate to reach out.
ADDITIONAL RESOURCES
MediaPost: Zillow Accused Of Breaking Federal Antitrust Laws
Reuters: Compass sues Zillow for allegedly stifling competition for home listings
Business Insider: The real victims of the 'Zillow Ban' lawsuit
CNNBusiness: Compass sues Zillow as fight over privately marketed listings heats up
The New York Times: Compass Sues to Stop ‘Zillow Ban’
FastCompany: Compass’s lawsuit against Zillow highlights the growing power struggle in online real estate
