Brokers warn of industry fallout from Compass’s MLS demands.

Leaders at Brown Harris Stevens, NextHome and Lamacchia Realty warn that a growing practice known as listing hoarding — where agents delay, stagger or restrict the exposure of homes to the market — is compromising the foundation of property valuation. By withholding accurate, timely comparable sales and active listings from public and MLS data, the practice reduces the availability of reliable comps that appraisers rely on to establish market value. That scarcity forces appraisers to broaden geographic or temporal search parameters, apply larger adjustments, or lean on lower-quality data sources, increasing subjectivity and variability in valuations. The result risks distorted price signals, weakened confidence in appraisal conclusions, and frustration among buyers, sellers and lenders who depend on transparent market information to close transactions.

For the mortgage industry, compromised comps translate into higher underwriting uncertainty and potential credit risk. Lenders may respond with tighter appraisal reviews, increased use of secondary valuation tools, or more conservative lending overlays to protect portfolios — outcomes that could slow purchase activity and raise borrower costs. Industry stakeholders are calling for clearer MLS rules, stricter enforcement of listing entry timelines, enhanced data-sharing practices, and technological detection of hoarding behaviors to restore transparency. A coordinated response from brokers, MLS operators, appraisers and regulators is necessary to safeguard appraisal integrity and maintain orderly capital flows into housing markets.

– Listing hoarding: Agents delay or limit public exposure of listings, reducing visible supply and comparable sales data.
– Impact on comps: With fewer timely comparables, appraisers must use less-relevant or more subjective data, increasing valuation variance.
– Appraisal and lending risk: Weaker comps can lead to conservative lender actions, more reviews, and potential tightening of credit conditions.
– Industry remedies: Proposals include stricter MLS entry policies, enforcement of disclosure rules, and improved data-sharing among stakeholders.
– Technology and oversight: Better analytics to detect hoarding and coordinated regulatory or MLS enforcement can help restore transparency and market confidence.

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