When Zillow announced it was the first real estate company to launch an app within ChatGPT, the industry didn’t exactly respond with applause. Instead, the October 6th announcement sparked immediate controversy, with some industry leaders questioning whether the tech giant had crossed a line with MLS listing data.
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What Zillow Built
The integration allows ChatGPT users to search for real estate listings using natural language. Ask about homes in Orlando under $400K, and the app displays properties with links back to Zillow’s site. David Beitel, Zillow’s chief technology officer, called it a way to bring “simplicity to the home journey” and positioned the company “at the forefront of generative AI adoption.”
Sounds innovative, right? Not everyone agrees.
The Data Controversy
The core issue centers on IDX (Internet Data Exchange) compliance. Multiple listing services license their data to brokers and portals like Zillow under strict terms, and some industry insiders believe this ChatGPT integration violates those rules.
The main concerns:
Danny Frank, a Texas real estate agent and former chair of the Houston Association of Realtors, didn’t mince words. “The brokers give permission to HAR, and they do not have my permission to share that with another third party site,” he told Real Estate News. Frank filed a formal complaint with HAR, which is now reviewing the matter.
Victor Lund from WAV Group raised another issue: NAR’s IDX policy requires all listings to be “under the actual and apparent control of the participant [broker].” Lund argues that when consumers use ChatGPT and simply invoke Zillow as a tool, they’re viewing listings on ChatGPT’s domain, not Zillow’s.
Zillow’s Defense
According to Errol Samuelson, Zillow’s chief industry development officer, the company went through “a painstaking process” to ensure compliance. They worked directly with OpenAI to guarantee that IDX data wouldn’t be used to train AI models.
Zillow’s position is straightforward: the ChatGPT interface may display the results, but the actual data comes from and remains controlled by Zillow. As their FAQ explains, “ChatGPT relays [the prompt] to Zillow, which sends a response that is displayed in the Zillow App, but that data does not go to ChatGPT.”
The Downloadable Data Problem
Here’s where things get interesting. When Real Estate News tested the integration, they discovered something concerning: by asking a series of questions, they could get ChatGPT to export listing data for 100 properties into a downloadable spreadsheet.
This capability raises red flags. While Google might display links to Zillow listings, it doesn’t create downloadable databases of that information. Could this open a backdoor for third parties to scrape and misuse listing data?
The Industry Response (Or Lack Thereof)
Most MLSs are staying quiet. When contacted, several major MLSs either declined comment or said they were “still investigating.” Only North Carolina’s Canopy MLS went on record, stating the integration “remains compliant with our IDX rules at this time.”
Why the silence? Russ Cofano, co-founder of Alloy Advisors and a licensed attorney, offered one explanation: “We’re in a very litigious time in our industry, more than I’ve ever seen it.” MLSs may be proceeding carefully to avoid potential legal entanglements.
A Bigger Question
Beyond the compliance debate lies a more fundamental issue: how should the real estate industry approach data in the age of AI?
Cofano suggested that rather than getting “wrapped around the axle on this ownership of data issue,” the industry should focus on serving consumers. “If really this industry is about serving consumers, then we should be applauding Zillow for trying to do something that exposes authorized listing data to more people in the way that we all know is coming, which is AI search and discovery.”
The National Association of Realtors released guidance on October 21st, advising MLSs to evaluate whether integrations like Zillow’s transmit data to unauthorized parties, maintain proper control over displays, and fulfill disclosure requirements.
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What This Means Going Forward
This controversy highlights a growing tension in real estate: the rules governing listing data were written before AI existed. As technology evolves, the industry faces a choice—adapt the rules or risk stifling innovation.
Whether Zillow’s integration is compliant under current IDX policies remains disputed. But one thing is certain: this won’t be the last time the industry grapples with how to apply old rules to new technology.
The question isn’t just about Zillow and ChatGPT. It’s about how the entire real estate industry will navigate the AI revolution while protecting the integrity of listing data. And right now, nobody seems to have all the answers.
To find out more, visit Zillow’s ChatGPT integration forces industry reckoning.
