Who Controls the Housing Market? The Quiet Battle Over Real Estate Listings That Could Impact You

A silent struggle is unfolding in the real estate world—one that could redefine how homes are bought and sold. At its core, this battle isn’t just about listings or policies; it’s about control, profit, and the rights of homeowners.

While most homeowners focus on finding the right buyer or securing their dream home, major real estate entities are engaged in a power tussle over who dictates the visibility of property listings. This conflict centers around the Clear Cooperation Policy (CCP), a rule established to ensure fairness and transparency in the housing market.

The Clear Cooperation Policy: A Brief Overview

Introduced by the National Association of Realtors (NAR) in 2019, the CCP mandates that once a property is publicly marketed, it must be listed on the Multiple Listing Service (MLS) within one business day. The intent is to prevent “pocket listings,” where homes are sold without being widely advertised, potentially limiting exposure and disadvantaging certain buyers.

However, the policy has become a point of contention among industry giants.

The Players and Their Positions

• Compass: This brokerage has championed the use of “Private Exclusives,” keeping listings within its network before sharing them publicly. While marketed as offering discretion for sellers, critics argue it’s a strategy to control both sides of the transaction, maximizing profits and limiting competition.

• Zillow: As a dominant online real estate platform, Zillow has taken a firm stance against private listings. The company recently announced it would ban listings that aren’t shared publicly within 24 hours of marketing, emphasizing the need for transparency and equal access for all buyers. However, some view this move as a tactic to consolidate control over listing data and drive traffic to its platform, which in turn boosts its revenue from advertising and lead generation.

• eXp Realty and NextHome: These brokerages have aligned with Zillow’s position, advocating for immediate public sharing of listings to ensure fairness and broad exposure.

• CoStar Group (owner of Homes.com): Opposing Zillow’s policy, CoStar has pledged to host listings that Zillow excludes, positioning itself as a champion of agent autonomy and consumer choice.

The Homeowner’s Dilemma

Amidst this corporate chess game, homeowners find themselves caught in the middle. Key questions arise:

• Should homeowners have the autonomy to decide how their property is marketed? While privacy and discretion are valid concerns, especially in sensitive situations, limiting a property’s exposure can impact its sale price and the pool of potential buyers.

• Are there penalties for homeowners who choose private listings? Under the CCP, if a property is publicly marketed, it must be listed on the MLS promptly. Failure to comply can result in fines for the listing agent or brokerage, potentially influencing how agents advise their clients.

• What about Fair Housing laws? Restricting a property’s visibility can inadvertently lead to discriminatory practices, as it may limit access for certain groups. Ensuring broad exposure helps uphold the principles of equal opportunity in housing.

Recent Developments: Seattle’s MLS Takes a Stand

In a notable move, the Northwest Multiple Listing Service (NWMLS) in Seattle recently blocked certain listings from publication, citing violations of the CCP. This action underscores the growing tension and the challenges MLSs face in enforcing policies amidst divergent practices by brokerages.

Navigating the Path Forward

The real estate landscape is in flux, with major players redefining norms and homeowners seeking clarity. As this battle unfolds, it’s crucial to prioritize the interests of those at the heart of every transaction: the buyers and sellers.

At Clareo Real Estate, we remain committed to transparency, fairness, and client-centric practices. We believe in empowering homeowners with information, ensuring their properties receive optimal exposure, and upholding the highest ethical standards.

For more insights and discussions on this evolving topic, tune in to Inside Georgia Real Estate on WSB 95.5 FM this Sunday morning.