In a recent interview, Errol Samuelson, Zillow Group’s Chief Industry Development Officer, expressed strong support for the NAR clear cooperation policy aimed at maintaining “transparency in real estate listings.” Samuelson emphasized that hiding inventory from the broader market is detrimental to both consumers and agents. He argued that private listings mislead consumers and ultimately harm the market by reducing inventory and driving up prices.
Samuelson’s stance aligns with Zillow’s business model, which relies heavily on listings from the Multiple Listing Service (MLS). Given this dependency, it’s no surprise that Zillow advocates for an open marketplace where all listings are accessible to any buyer and agent. Samuelson pointed out that sellers often leave money on the table when they opt for off-market sales, citing data from a broad survey of nearly 3 million listings.
The Clear Cooperation Policy Debate
The debate around the National Association of Realtors’ (NAR) Clear Cooperation Policy (CCP) continues. The CCP requires agents to add a listing to the MLS within 24 hours of publicly marketing it. Some industry leaders suggest extending this window to seven or fourteen days, but Samuelson remains unconvinced, stating that any delay in listing on the MLS would lead to the same issues seen with office exclusives.
Samuelson’s argument is rooted in the belief that transparency benefits everyone involved in the real estate market. He asserts that private listings create a false sense of scarcity, driving up prices and making homes less affordable for buyers. By ensuring that all listings are available on the MLS, buyers have access to a wider range of options, and sellers can reach a larger pool of potential buyers, potentially securing better offers.
Zillow’s Position and Business Model
Zillow’s support for the CCP is not surprising given its business model. The platform relies on a steady stream of listings from the MLS to attract users and generate revenue. By advocating for transparency and opposing private listings, Zillow ensures that it continues to receive a high volume of listings, which is crucial for its success.
Samuelson also addressed concerns about the potential impact of private listing networks on Zillow’s business. He acknowledged that if private networks become more prevalent, Zillow would need to adapt. However, he emphasized that Zillow has no plans to enter the brokerage business, as some industry leaders have suggested.
My Perspective on the NAR Clear Cooperation Policy (CCP)
It’s clear why Zillow supports this stance—they benefit from the influx of listings from the MLS. As a real estate agent, you believe that agents should have the freedom to employ the marketing strategies they deem best for their properties. The flexibility to manage listings without stringent rules could lead to more innovative and effective marketing approaches.
Moreover, you advocate for the abolition of the Clear Cooperation Policy. You argue that agents should not be required to join the NAR to access the MLS, referencing the Thompson broker lawsuit. This change could democratize access to MLS listings, allowing more agents to participate without mandatory association memberships.
The Impact on Agents and Consumers
The CCP has been a contentious issue among real estate professionals. Some argue that it restricts their ability to market properties effectively and limits their flexibility. By requiring agents to list properties on the MLS within 24 hours, the policy can prevent them from using exclusive marketing strategies that might benefit their clients.
On the other hand, proponents of the CCP argue that it promotes fairness and transparency in the market. By ensuring that all listings are available to all buyers, the policy helps prevent the creation of exclusive networks that can disadvantage certain buyers. This is particularly important in a market where inventory is already limited and affordability is a major concern.
The Role of the MLS
The MLS plays a crucial role in the real estate market by providing a centralized database of listings that is accessible to all agents and buyers. This transparency helps ensure that buyers have access to a wide range of options and can make informed decisions. It also helps sellers reach a larger pool of potential buyers, increasing the likelihood of receiving competitive offers.
However, the requirement for agents to join the NAR to access the MLS has been a point of contention. Some argue that this requirement is unnecessary and that agents should be able to access the MLS without being forced to join a professional association. The Thompson broker lawsuit highlights this issue, with the plaintiffs arguing that the NAR’s membership requirement is anti-competitive and should be abolished.
The Future of Real Estate Listings
As the real estate industry continues to evolve, the debate over transparency and access to listings is likely to persist. While Zillow and other platforms advocate for open access to all listings, some agents and brokerages may continue to push for more flexibility in how they market properties.
Ultimately, while transparency can benefit many transactions by ensuring broad exposure and competition among buyers, it’s essential not to overlook situations where alternative strategies might serve clients better.
Conclusion: The Clear Cooperation Policy (CCP) Debate
Errol Samuelson’s advocacy for transparency in real estate listings reflects Zillow’s commitment to an open marketplace. However, as Stu Hill from Easy Realty—a non-NAR member “Thompson broker”—you believe it’s absolute nonsense that agents are forced to put every listing on the MLS.
While listing on MLS might be suitable for many homes, making it mandatory eliminates more creative marketing strategies such as adding an air of exclusivity (similar to how Hermes markets their bags). This requirement could potentially hurt clients rather than benefit them by limiting innovative approaches tailored specifically for unique properties.
You argue for abolishing both Clear Cooperation Policy and mandatory NAR membership requirements for accessing MLS—believing these changes would democratize access while allowing agents greater freedom in employing strategies best suited for their clients’ needs.
By fostering flexibility alongside transparency within real estate markets—balancing broad exposure with innovative approaches—the industry can better serve diverse client needs while ensuring fair competition across all transactions.
