Compass, NWMLS settle lawsuit with new 'First Look' status

Compass and the Northwest Multiple Listing Service (NWMLS) have settled an antitrust lawsuit, creating a new "First Look" listing status. The agreement, which takes effect in stages starting September 4, also changes rules on agent attribution and data access.

NWMLS called the settlement a victory for open competition and consumer protection. The organization stated it modernizes rules without altering the fundamental cooperative marketplace. NWMLS said the settlement ensures there will be no off-MLS private listings and preserves universal access, requiring every First Look listing to be submitted to its database.

The lawsuit, filed by Compass in April 2025, challenged rules that restricted a phased listing strategy. NWMLS said the timing of the settlement was driven by evolving practical realities of how brokers prepare homes for sale and recent Washington state legislation.

For brokers, the agreement addresses broader questions about seller-directed marketing, listing presentation, and data access. Craig Cheatham, president and CEO of The Realty Alliance, said the settlement reflects a healthy re-examination of the relationship between MLSs and brokerages. OB Jacobi, president of Windermere Real Estate, views the settlement as a win for consumers and professionals because it prevents listings from being held in private brokerage networks.

The most visible change is the First Look status. It allows sellers to publicly market properties for up to 21 days before moving to active status, while the listing remains in the NWMLS database accessible to over 30,000 member brokers. Sellers can choose whether to allow showings and whether the property appears in IDX feeds. Data on days on market and price adjustments during this period will be stored internally but not displayed publicly later.

NWMLS said the 21-day window provides adequate preparation time without leaving homes in indefinite limbo. Craig Cheatham said this represents an interesting middle ground worth watching. OB Jacobi said Windermere supports the flexibility because listings remain available throughout the MLS system. He does not expect it to fundamentally change how most listings are marketed, noting broad exposure typically yields the best outcome for sellers.

The settlement emphasizes that First Look listings cannot be kept in private networks. Every listing must be submitted to the NWMLS database, making it visible to all member brokers. The system includes an automatic transition to active status and a 60-day off-market waiting period before a property can use First Look again. Jacobi said seller choice should not conflict with transparency. He supports the open-access component but noted a potential concern for buyers not yet working with an agent, as they may not see all available homes on public websites.