What does it really mean to put the consumer first in today’s real estate market?
That question is at the heart of a pointed Inman op-ed by eXp CEO Leo Pareja, who challenges Compass’s Three-Phase Marketing strategy and what he sees as mixed messaging around who benefits most from it.
On the surface, Compass describes the strategy as a way to offer sellers more options. But Pareja argues that the real goal is to control inventory, limit access, and boost agent commissions. And he uses internal communication and public comments from Compass leadership to make his case.
In this week’s episode of The Real Word, Byron Lazine and Nicole White dive into Pareja’s claims and the broader conversation around transparency, steering, and seller choice in a post-settlement market.
What Compass Says: “Seller Choice”
Compass’s Three-Phase Marketing strategy moves listings through a specific funnel:
- Compass Exclusive (private launch)
- Coming Soon (pre-MLS exposure)
- Public Launch (MLS and full-market distribution)
In theory, this gives sellers more flexibility to test pricing and demand before hitting the open market.
In practice, Pareja argues that it limits visibility at the most crucial moment: the beginning.
He points to Compass’s own Q1 2025 data, which shows that 48.2% of listings went through this funnel. “Nearly half of their homes were shielded from the broader market at the outset,” Pareja writes. “No matter what language you wrap it in, that’s steering.”
What the Internal Email Reveals
Pareja supports his argument with a screenshot of an internal Compass email from a managing broker to a now-former agent. In the message, the broker congratulates the agent on new listings and adds:
“On your upcoming listings, I ask for a commitment to use our Three-Phase Marketing program. These steps are so important to what we want to accomplish collectively at Compass.”
Byron Lazine summarized it this way on The Real Word:
“There’s not a dispute that this email positioned by the managing broker is about pushing a product that Compass wants in the market. And so, the way the email is written…the way this particular email is written from this particular managing broker is positioning everything to do with Compass’s best interests in positioning this product, Compass Exclusives, into the market—not the seller’s goals, not the seller’s best interest.”
At no point in the email did the managing broker acknowledge the possibility that the agent’s seller clients may not have wanted to try the Three Phase Marketing plan. When the agent didn’t use the product, the managing broker reached out to get a “commitment” to “help me” push the product with future sellers.
So, it’s reasonable to ask Byron’s question, “Is this steering?”
Nicole White’s answer offered a different take on the email, suggesting that managing brokers may be under pressure to meet internal benchmarks rather than intentionally steering agents. They may also be so passionate about the product that they’re genuinely motivated to ensure the agents in their charge are presenting it to their sellers.
“I’m not seeing any harm in it… I do think that they think that this product is definitely beneficial… So I just think that they’re making sure that their agents are actually utilizing it. And if they’re not, it’s ‘Let’s chat, let me help you leverage this so that you know your sellers can benefit from this.’”
What Rory Golod Said on the Record
Pareja also references a recent appearance by Compass President of Growth Rory Golod on The Ricky Carruth Show.
In that interview, Golod discusses the Three-Phase Marketing strategy primarily in terms of how it helps agents win more listings and close more deals. Pareja points out that at no point does Golod mention consumer transparency or seller benefit.
In fact, more than once, as James Dwiggins pointed out in a Facebook post, Golod stressed that the company’s aim with its 3-Phase Marketing plan is to “help agents win more listings.”
As Pareja put it:
“He said the quiet part out loud, on repeat.”
What Robert Reffkin Said in Q2 2024
In Compass’s Q2 2024 earnings call, CEO Robert Reffkin stated: “The foundation of every entity’s success in real estate is access to inventory.”
While the quote speaks to a core truth of the business, some industry leaders see it as a window into Compass’s broader strategy.
Much depends on the context, in other words. What are Compass’ actions, as well as public and internal messaging, and what coloring do they add to this official statement from the Compass CEO?
It’s a bit mixed, to be honest. Pareja argues that this quote from Reffkin reveals Compass’s endgame: controlling access to listings to gain a competitive edge.
He writes:
“Access is power. And Compass wants to be the only one holding the keys.”
He also points out that 94% of Compass Exclusive listings eventually end up on the MLS, which raises the question: if exposure is so important to their sellers, why delay it?
The Bigger Question: Who Is This Really For?
At the center of Pareja’s op-ed is a challenge to the entire industry: If a strategy benefits the company more than the client, can it still be called consumer-first?
Byron Lazine captured the dilemma this way:
“Which one is it? Is it what’s right for customers? Or is it what’s right for Compass?”
It makes sense Compass would stress the company’s growth in a message to shareholders.
Meanwhile, on IG, Compass is all about seller choice.
Then, in an internal email from a managing broker, the message is, “Help me push this product.”
Because, as the company’s President of Growth made clear, that product helps Compass agents get more deals. And, per Golod, that’s the reason Compass is so passionate about it.
So, is this a two-sides-of-the-same-coin scenario? Or will the mixed messaging from Compass ultimately undermine its case against Zillow?
What do you think?
Leo Pareja will be one of our featured guest speakers at next week’s BAM BBQ, where he’ll go deeper into his views on listing access, transparency, and what it means to lead with a consumer-first mindset.
Sign up to lock in your spot. Registrants will receive a link to the full replay, so you won’t miss a thing.
