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BBB Sides With Realtor.com in CoStar Advertising Spat

Realtor.com won the BBB’s favor after CoStar challenged the site’s claim as the “#1 site real estate professionals trust.”
BBB Sides With Realtor.com in CoStar Advertising Spat
  • The Better Business Bureau upheld Realtor.com’s claim of being the “#1 site real estate professionals trust” based on a survey of over 1K professionals.
  • CoStar and Move Inc. (Realtor.com’s parent company) continue to battle over allegations of misleading traffic claims, trade secrets, and advertising practices.
  • CoStar’s Homes.com emphasizes a lead-centric model preferred by many agents, contrasting with Realtor.com’s approach.
Key Takeaways

According to The Real Deal, the BBB’s National Advertising Division supported Realtor.com’s tagline, affirming that its the “#1 site real estate professionals trust” slogan is substantiated by a 2024 double-blind survey of over 1K real estate professionals. 

Behind The Verdict

CoStar (CSGP), the parent of Homes.com, had objected to the claim, arguing it lacked transparency and exaggerated trustworthiness. However, the BBB determined the survey’s methodology was adequate and only suggested Realtor.com keep survey data current to continue using the tagline.

“We prioritize the trust our platform inspires,” said a Realtor.com spokesperson. “Our reputation is integral to helping real estate professionals allocate their marketing budgets effectively.”

Challenges, Counter Claims

This development is just one aspect of the ongoing rivalry between CoStar and Move Inc. over traffic metrics, advertising practices, and proprietary data. CoStar’s Homes.com and Move’s Realtor.com are competing to establish dominance as the second most-visited real estate platform after Zillow (ZW).

CoStar’s general counsel, Gene Boxer, challenged the slogan and the platform’s traffic claims. According to CoStar, Google Analytics—its chosen traffic-tracking tool—is a superior method to alternatives used by Realtor.com, which relies on platforms like Comscore and SimilarWeb. 

CEO Andy Florance of CoStar defended this approach, describing Google Analytics as providing more accurate “election result” data compared to the “poll-like” results of third-party analytics tools.

Competing Models

The dispute also extends to customer experience. Homes.com champions its “Your Listing, Your Lead” model, which allows agents to retain exclusive leads generated from their listings—an approach designed to boost agent satisfaction. 

In contrast, Realtor.com’s model sells leads to agents, drawing criticism from CoStar as detrimental to both agents and consumers.

CoStar has recently highlighted a climbing Net Promoter Score (NPS) for Homes.com, indicating increased agent and consumer loyalty. “Agents appreciate Homes.com’s model, which is more beneficial to both them and their clients,” stated a CoStar spokesperson, suggesting that Realtor.com’s “lead diversion” model fails to prioritize agent success.

Move’s legal team remains active despite setbacks, including the recent dismissal of two claims in a California-based lawsuit against CoStar, with intentions to refile. 

Originally filed in July, the suit accuses a former employee of stealing proprietary information after moving to Homes.com. Although the judge denied an injunction request, Move is pursuing revised claims and further court action.

Meanwhile, both platforms have recently adjusted certain advertising practices following BBB recommendations, reflecting the competitive intensity of real estate listings.dlords.

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