The National Association of Realtors’ Clear Cooperation policy was intended to curb “pocket listings,” which agents only share privately. But some major voices in the industry say it’s time to end the practice. iStock illustration
Fractures in the residential real estate industry over a policy that’s supposed to curb so-called “pocket listings” are raising the possibility of another huge shift in how homes are bought and sold.
The National Association of Realtors’ Clear Cooperation policy states that within one business day of marketing a property to the public, the listing broker must submit the listing to their local multiple listings service for cooperation with other MLS participants.
These are sales that are marketed through real estate agents’ personal private networks or within a brokerage, without being listed on an MLS. Critics say they unfairly lock competitors out of deals and risk enabling discrimination against some buyers.
MLS PIN was not required to implement the 2019-vintage policy since it is not owned by a Realtor trade group. However, the main MLS for Massachusetts has adopted rules of its own that broadly echo it.
For Premier Realty Group Inc. owner Mark A. Triglione, Clear Cooperation has been effective in achieving its goals.
“For me, I’m a small independent broker, and I work in a smaller area than a lot of agents do,” the North Reading broker said. “My experience with it has been that it has been extremely effective, because we don’t feel that pocket listings create a fair and equally accessible marketplace for everybody.”
NAR’s governing body avoided taking a position on changes to the policy at the association’s big annual NXT conference last week. But that may not last: Clear Cooperation, or “CCP,” has drawn the attention of the Department of Justice, concerned about antitrust issues. And Top Agent Network took matters into its own hands, filing a federal antitrust lawsuit against the National Association of Realtors earlier this year.
“NAR will continue to evaluate CCP in the broader context of the issues facing NAR and the industry,” the association said in a statement. “As a national organization that represents members across the country, NAR continues to receive a range of passionate opinions about CCP. We believe any changes to policies and practices as important as CCP has to carefully weigh feedback from a wide range of members, stakeholders, and industry experts. With respect to CCP specifically, the organization must also consider ongoing litigation and DOJ investigations. As such, NAR will work carefully and diligently to ensure that we continue to review CCP to ensure a decision is made in such a way that is in the best interest of members and consumers.”
‘Ensures a Fair Marketplace’
While Clear Cooperation has come under scrutiny, some local industry leaders believe that the policy plays a vital role in promoting competition.
Andrew Haigney, principal at buyer-only Boston luxury brokerage Batterymarch Group, believes that if Clear Cooperation was to go away, completion would be stifled. Brokers, he said, would have much more control.
“It’s probably more important than ever to have Clear Cooperation,” he said. “Back in the day, a lot of it was just because it was a fragmented market. It was just a way to simplify it and level the playing field so everybody was working with the same data, the same offerings.”
Triglione, who’s also in line to be the 2025 president of the Greater Boston Association of Realtors, argued the policy promotes competition, makes the market equitable for agents, homebuyers and sellers alike and often secures the highest price for a home.
“I think the Clear Cooperation policy ensures a fair marketplace that is efficient, transparent, pro-consumer and pro-competition,” he said. “I really just don’t believe – not only in my heart, but also in my experience over the past 13 years – that it is in the best interest of almost every seller to not expose your property to the open market.”
Sam Minton
Debate at Real Estate’s Highest Levels
The issue cuts to the heart of how homes are currently bought and sold, and that’s drawn in some of the most important names in real estate.
“Some large brokers are pushing for private listing networks – which limits listing inventory access and keeps listings behind a velvet rope,” Zillow said in a statement. “[T]his disadvantages buyers and limits their choice when selecting an agent,” they said. “Buyers rely on agents to guide them through the transaction and should work with an agent who delivers real value, not value based on access to a private listing club.”
One of the big names that is against the policy is Compass CEO Robert Reffkin. In his eyes, the seller’s rights are being infringed upon.
“We don’t think that is right. Homeowners should not be forced to do anything they don’t want to do,” he said during the company’s third-quarter earnings call.
