Washington State’s Real Estate Transparency Law: A Blueprint for the Nation
When Washington State Governor Bob Ferguson signed Senate Bill 6091 into law this week, banning the marketing of residential properties to exclusive groups of buyers or brokers, he sent a clear message: Transparency matters.
This bill didn’t emerge from political theory or academic debate. It arose from a real tension in the real estate industry: Whether openness and equal access to listing information remain core principles, or whether the market fragments into private networks that benefit only a select few.
The Foundation of an Open Marketplace
For decades, residential real estate has functioned as one of the most open marketplaces in America—and the world. Unlike many countries that fiercely guard listing data and property information, buyers and sellers in the U.S. have largely operated in a system where inventory and information are broadly shared through Multiple Listing Services (MLS). This openness isn’t accidental; it’s the foundation of consumer trust and fair market value, a principle long championed by the National Association of Realtors (NAR).
According to a 2023 study by the Consumer Federation of America, over 80% of homebuyers consider broad access to listings a critical factor in their search. This system has historically ensured competitive bidding, accurate pricing, and efficient transactions. However, in recent years, certain large national brokerages have pushed to expand private listing networks—exclusive, invitation-only platforms that limit who can view or access homes for sale. These practices reduce exposure, restrict competition, and ultimately work against the very people the real estate industry is meant to serve.
The Threat of Fragmentation
Private listing networks create a two-tiered market. While they may offer sellers a sense of privacy, they often do so at the cost of reduced buyer competition and potentially lower sale prices. A 2022 analysis from the Berkeley Real Estate Center found that properties listed exclusively in private networks can sell for 3-5% less than comparable MLS-listed homes, a significant financial impact for sellers.
Consumers have been clear: they expect transparency. Buyers want confidence they’re seeing the full range of homes available, and sellers want assurance their property is reaching the widest possible audience. When transparency erodes, so does trust in the system. This erosion prompted Washington lawmakers to act.
A Balanced, Bipartisan Solution
Washington State’s action was measured, purposeful, and bipartisan. Lawmakers on both sides recognized that the housing market functions best when information is broadly shared and access is equal. Senate Bill 6091 specifically prohibits brokers from marketing residential listings exclusively to other brokers or to a limited group of potential buyers, with key exemptions:
- Legitimate “off-market” or “pocket” listings where the seller explicitly requests limited marketing and understands the trade-offs.
- Listings where restricted marketing is necessary to protect occupant safety, health, or privacy (e.g., domestic violence situations, medical conditions).
- Transactions involving certain property types like farms or large estates not typically marketed to the general public.
This legislation simultaneously protects consumers without restricting legitimate, seller-directed off-market sales. It reinforces the principle that broad marketing should be the default, not the exception.
Choosing Principle Over Profit
Few companies stand to lose more from this law than Windermere Real Estate, which holds the largest market share in Washington. Private listing networks could have worked to our advantage by allowing our agents to access exclusive inventory. We supported the legislation anyway—because protecting transparency matters more than protecting market position or company profits.
As co-president of Windermere, my experience of over 25 years in this industry has shown that long-term trust is our most valuable asset. This law aligns with that ethos. It ensures the playing field remains level for all brokers and, most importantly, for all consumers.
A Blueprint for National Leadership
Washington’s leadership should not be seen as an exception. It should be a blueprint. By reaffirming the importance of an open marketplace, the state protected a system that has long served consumers well. Other states should take note: Washington didn’t reinvent real estate. It safeguarded one of its most important principles.
And in doing so, it demonstrated that progress isn’t always about building something new. Sometimes it’s about protecting what already works—a transparent, competitive, and equitable housing market for everyone.
About the Author:
OB Jacobi is the co-president of Windermere Real Estate, a company with over 250 offices across the Western U.S. and Canada. Under his leadership, Windermere has consistently advocated for policies that promote consumer protection and market transparency.
