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Compass Pre-Marketed Listings Were Associated with 2.9% Higher Sale Prices in 2024

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Compass Pre-Marketed Listings Were Associated with 2.9% Higher Sale Prices in 2024

  • Compass research finds that listings that were pre-marketed as Compass Private Exclusives and/or a Compass Coming Soon, before going active on the MLS, were associated with better outcomes for homeowners.
  • Pre-marketed homes were associated with an average 2.9% higher close price.
  • Pre-marketed listings received accepted offers 20% faster, on average, after listing on the MLS.
  • Listings that were pre-marketed were about 30% less likely to experience a price drop after listing on the MLS.

New York, NY – February 21, 2025 – Compass, Inc. (NYSE: COMP) (“Compass” or “the Company”), a leading tech-enabled real estate services company that includes the largest residential real estate brokerage in the United States by sales volume, conducted research analyzing the value of pre-marketing homes using its innovative Compass 3-Phased Marketing Strategy. The research found that home sellers who opted to extend their marketing runway by controlling when to list their properties on the Multiple Listings Services (MLS) and public websites were associated with higher sales prices and less time on the MLS before receiving an accepted offer. 

“These early findings are an encouraging signal that giving homeowners more choices on how they market their property and list on the MLS is strongly correlated with better outcomes,” said Dave Crosby, Compass’ Chief Data Officer.

The Compass research assessed Compass sell-side residential transactions from January 1, 2024, through December 31, 2024, finding that:

  • Homes pre-marketed as Compass Private Exclusives and/or Compass Coming Soon before going active on the MLS were associated with an average 2.9% higher close price compared to those that were not pre-marketed. 
  • Homes with pre-marketing received an accepted offer 20% faster on average – 8 days sooner – once active on the MLS. 
  • Only 13% of pre-marketed Compass listings experienced a price drop, compared to 19% without pre-marketing. This translates to about 30% fewer listings taking a price drop once active on the MLS.

“Using the Compass Private Exclusive system, we tested pricing on a listing to ensure it resonated with potential buyers,” said Sunny Darden, a top Compass Agent in Dallas. “By leveraging insights gained during this pre-marketing phase, we fine-tuned our approach before going live on the MLS. As a result, the property went under contract in just two days.” 

The Compass 3-Phased Marketing Strategy helps homeowners protect and maximize their most valuable asset by using pre-marketing to generate early demand and validate pricing, ensuring their home is ready for success before hitting the MLS and public websites where negative insights like days on market and price drop history are shown. The three phases include a property listed first as a Compass Private Exclusive, then as a Compass Coming Soon available to all consumers on Compass.com, and finally going live on the MLS and public websites. This research highlights the value of pre-marketing a home to protect and maximize its value before sharing it with a broader audience on the MLS and public websites. 

For more information on how Compass is empowering homeowners, visit https://www.compass-homeowners.com/ 

Methodology

These analyses utilized a hedonic regression model to evaluate the impact of pre-marketing on Compass residential closed sell-side transactions from January 1, 2024, to December 31, 2024. The research covered residential property types, including single-family, co-ops, condos, townhouses, and condops, across all Compass markets.

The regression model controlled for key factors such as property types and characteristics, markets, and seasonality to isolate the effect of pre-marketing. Results indicate that, on average, Compass pre-marketed listings were associated with a 2.9% increase in final close price compared to listings that went directly to the MLS. The estimated effect falls within a 95% confidence interval of 1.9% to 3.9% at a national level. These results are likely to vary depending on local market, market conditions, and seasonality. 

Findings from the internal analysis were based on a hedonic regression model that examined Compass residential closed sell-side transactions from January 1, 2024 – December 31, 2024, nationally and for all residential property types (single family, co-op, condo, townhouse, and condop). For 2024, Compass pre-marketed listings are associated with an average 2.9% increase in the final close price versus Compass listings that went directly to the MLS. The estimated effect has a 95% confidence interval ranging from 1.9% and 3.9%. This finding may vary depending on market conditions and seasonality. The results provided are based on current data and methodologies, and should not be interpreted as definitive predictions of future outcomes.

Findings are descriptive statistics and compare the average of Compass residential listings that went active on a MLS and were pre-marketed as a Compass Private Exclusive and/or Compass Coming Sooner vs. the average of Compass residential listings that went active on a MLS but were not pre-marketed as a Compass Private Exclusive and/or Compass Coming Soon from January 1, 2024 – December 31, 2024. Price drop history is included for geographies where price drop history is available from MLS. Source: Compass data.

About Compass

Compass is the largest residential real estate brokerage in the United States by sales volume. Founded in 2012 and based in New York City, Compass provides an end-to-end platform that empowers its residential real estate agents to deliver exceptional service to seller and buyer clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionality, all custom-built for the real estate industry. Compass agents utilize the platform to grow their business, save time and manage their business more effectively. For more information on how Compass empowers real estate agents, one of the largest groups of small business owners in the country, please visit www.compass.com.