Big Changes: What ‘First Look’ Means for Buyers & Sellers

The NWMLS (Northwest Multiple Listing Service), the shared database where broker members input their listings for sale to make them available to all the other broker members and where broker members search for listing inventory, made a big change on September 4th. As a result of the recently settled lawsuit with Compass, the new First Look status was created to allow an option to phase the marketing of a listing.

This did not allow a brokerage to create a private listing network where they would only share their listings within their own firm and lock out other broker members and/or limit access to the public, which would put the public and the membership at a disadvantage for the benefit of a single brokerage. Unlike Coming Soon listings that are common in markets outside of Washington State, First Look is an option that requires a brokerage to market their listings to the NWMLS database and possibly sell it before going to fully Active status.

In First Look status, a listing is input into the NWMLS database and is visible to all 30,000+ broker members. The maximum time a listing can remain in First Look status is 21 days. During the time a listing is in First Look status, a seller can choose to allow showings, open houses, and broker’s opens. These listings can sell during this time, as well. The seller can also choose to have the listing syndicate via the IDX (Internet Data Exchange) feed from NWMLS, to all third-party public-facing listing portals such as Zillow, Redfin, Homes.com, and Realtor.com, to name just a few of the thousands of websites the IDX reaches.

When in First Look status, if syndicated, the days on market and any price adjustments in First Look will NOT be sent to the third-party public-facing listing portals from the NWMLS. However, these key metrics will be displayed on the NWMLS database for all of the broker members to view. If a buyer is active in the market and does not want to “miss out” on a listing, they should strongly consider aligning with a broker who can forward the First Look listings that are not syndicated and to provide the listing insights that are most often only found on the NWMLS database.

• Brokers can set up auto-emails to be delivered to their buyers based on saved search criteria set by the buyer that will immediately send all First Look (and Active) listings to the buyer, so they have full access to all available inventory regardless of syndication. Brokers can also report to their buyers the days on market and price adjustment insights that occur in the First Look status most often only found in the NWMLS database to help buyers better assess the property.

In June, Washington State implemented a new law, SB 6091 RCW 18.86.130, requiring all listings to be marketed to the public and all brokers, barring health and safety concerns by a seller. Some members of the NWMLS have been requesting a status like First Look for some time. The result of the settlement granted this request and created guardrails to ensure it was compliant with RCW 18.86.130, which does not allow for private listing networks and promotes fair housing standards.

It is important for everyone that the new law is considered when choosing to not syndicate a listing to all the public-facing listing portals. The new law was put in place to ensure a fair and open marketplace for all and to promote the concept of fair housing. Further, maximum exposure of a listing most often results in the highest return and best terms for a seller by making it available to the largest audience of buyers possible versus a select group.

Why would a seller consider doing a First Look status before going fully Active in the NWMLS?

• They want to make the broker community and the public aware that their listing that is not ready for showings, is coming for sale and to create excitement. This could be especially effective if there is a similar competing listing available that is drawing attention by letting buyers know they could have an additional option.
• If a home is unique and difficult to price, this time frame could provide pricing feedback via showings without posting days on market and price adjustments on the public portals via the NWMLS syndication feed. Once adequate feedback is received (within the 21 days), a seller could adjust accordingly and go to full Active status at a price based on the feedback, with 0 days on market published once Active.
• They may want to showcase curated marketing such as video, social media campaigns, and print media and/or gather staffing for open houses without violating NWMLS rules and RCW 18.86.130, which don’t allow pre-marketing before being input into the NWMLS database and marketing to the public.
• If a buyer secures a property to purchase contingent on the sale of their home which requires them to quickly get their home in the NWMLS database per the purchase and sale contract, this allows them to do this immediately while they may still be preparing the property for full Active status.

What is important for consumers to understand?

• The First Look status is an option and not a requirement. In fact, we anticipate that it will not be used most of the time, but when the situations above arise.
• Aligning with a broker will ensure a buyer has access to fully non-syndicated First Look listings, so a buyer does not miss out on all available inventory since a listing can sell during First Look status.
• Aligning with a broker will ensure a buyer has access to the days on market and price adjustment insights during the First Look status which will likely not publish outside of the NWMLS database since these insights will not syndicate to the third-party public-facing search portals in First Look status from the NWMLS.
• Listing syndication to all third-party public-facing portals ensures maximum exposure to all the public, especially buyers who are not aligned with a broker. This typically results in the most favorable outcome for a seller.

These changes have come fast, and the market will adapt. I am continually committed to staying on top of the ever-changing landscape, including industry shifts such as First Look, along with the current market conditions and trends to best serve my clients. If you have any questions or want to discuss what is happening in the market in relation to your goals, please reach out. It is always my goal to educate, inform, and empower through data, insights, and experience to assist my clients in making strong financial decisions and better their lives. Here’s to moving forward aligned, aware, and with the best outcome for my clients at the forefront.