Compass CEO Robert Reffkin lays out 10 questions his brokers are asking within the wake of NAR’s fee settlement in his newest argument in favor of shopper selection and towards CCP.
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I’ve all the time appreciated Gary Keller’s management in our business. When many leaders are silent, he’s outspoken, saying issues like:
“NAR sold us out a long time ago. The thing that drives you absolutely crazy is a trade association is not supposed to be in your business.”
“As long as you have the right to your work product, you’re OK. The second that an MLS or NAR or anybody else decides that you can’t decide on your own if you want Realtor.com to have it, or Trulia to have it, or Zillow, then you’ve lost control of the industry. As long as it’s your decision, we’re good.”
I didn’t totally admire the context of those quotes till the NAR settlement when our business collectively paid $1 billion for “mandatory” NAR and MLS guidelines. After such a public failure, I had hundreds of brokers ask the next questions, questions that don’t have good solutions:
- Why did NAR/MLSs give our listings away to the portals? Why received’t the MLS let me write within the itemizing description that I’m the itemizing agent, which might create extra transparency for consumers when they’re looking the portals?
- Why received’t the MLS let brokers watermark their very own photographs, however then the MLS watermarks them?
- To have entry to the MLS, why am I compelled to affix and pay three completely different associations (NAR, state and native associations)? Are the quite a few lawsuits towards NAR’s “three-way agreement” justified?
- How might “maximum exposure equals maximum price” be true or the MLS examine claiming houses promote for 17.5 % extra on the MLS be true, when essentially the most subtle and profit-driven sellers of actual property — builders and residential builders — offered over 300,000 houses off the MLS final yr?
- Why do actual property builders and homebuilders not need to observe Clear Cooperation whereas particular person owners need to observe it?
- What number of owners are conscious that Clear Cooperation forces them to provide the MLS their itemizing after at some point of any type of public advertising and marketing?
- Cooperation via the MLS was designed a long time in the past for brokers to share their listings with brokers at different brokerages. Why are brokers now compelled to “cooperate” with portals — corporations with out brokers, listings, or purchasers — whose enterprise mannequin is to promote leads, not houses? Why are purchaser inquiries offered to the best bidder as an alternative of going to me, the agent who is aware of the house the very best?
- Why is the Division of Justice (DOJ) investigating NAR’s Clear Cooperation Coverage? Why did the decide within the lawsuit between DOJ v. NAR (April 2024) say that the “DOJ believes that the Clear Cooperation Policy restricts homeseller choices and precludes competition from new listing services?” I noticed that the DOJ requested NAR to alter Clear Cooperation to permit owners 60 days (not at some point) to publicly listing off the MLS — why is NAR not doing what the DOJ requested?
- My consumer requested to not have value drop historical past and days on market on their itemizing. Why received’t my MLS enable me to do what my consumer has requested?
- In response to questions like these, why does the MLS say “If you don’t like our rules, then you don’t have to be a member of the MLS,” once they know brokers can’t do their job with out MLS entry and that guidelines like Clear Cooperation have prevented competitors from any various itemizing programs that would present me with a couple of single selection, my native MLS.
There are too many questions like these that don’t have good solutions. NAR and MLSs ought to take away “mandatory” guidelines like Clear Cooperation that result in these issues. Forcing brokers and their purchasers to do issues they don’t wish to do shouldn’t be a successful technique.
Robert Reffkin is the founder and CEO of Compass.
