State AGs urged to probe Zillow, pocket listings, referral fees

The National Association of Attorneys General recently received a letter urging state AGs to investigate Zillow and other real estate companies over certain business practices. At the heart of the matter are concerns around "pocket listings," which refer to properties not publicly listed on the Multiple Listing Service (MLS), and referral fees paid to agents who steer clients to specific companies. This is worth watching because it gets at the opaque nature of real estate transactions and how they impact consumers.

The letter specifically highlights the recent settlement between Zillow and Redfin, suggesting that this could be a bellwether for future investigations. The practice of "Contact Agent" routing, where consumers are directed to specific agents, is also under scrutiny. For construction industry stakeholders, this is relevant because it speaks to the broader dynamics of real estate brokerage and how it influences the flow of clients and transactions. If state AGs do launch investigations, it could lead to changes in how real estate companies operate and interact with consumers.

What's next to watch is whether state AGs take up the call to investigate and what specific actions they might take. If they do probe Zillow and similar companies, it could lead to increased transparency and accountability in real estate transactions. For construction industry players, this could have implications for how they work with real estate brokers and agents, and how they market their properties to potential buyers. As the situation develops, it's likely that we'll see more attention on the business practices of real estate companies and their impact on consumers and the broader market.

Originally reported by housingwire.com. ConstructionNews adds analysis for real estate & property readers.