When Zillow, Compass, eXp, and a state regulator sit down to debate MLS Clear Cooperation policies, you’re bound to hear fireworks. That’s exactly what happened during Colibri Real Estate’s June 12 webinar Clear Cooperation: Real Estate Industry Impact & Legal Risks, moderated by Spencer Payne, Senior Director of Strategic Projects for Colibri Real Estate.
This was no ordinary panel discussion. The conversation was heated, opinions were divisive, and the implications are huge for agents and brokers who rely on MLS data to stay competitive.
We’re here to recap the tension, the stats, and the major takeaways you absolutely need to know.
Here’s What Went Down
The panel tackled one of the most divisive topics in real estate right now: MLS Clear Cooperation policies. To refresh, this rule essentially requires the disclosure of most listings to the broader MLS network within one business day of marketing a property. Sounds simple, right? Not so much.
Here’s why the discussion got heated:
- Zillow defended its platform’s market impact and emphasized the need for transparency within the marketplace.
- Compass argued for less regulation, emphasizing that Clear Cooperation stifles client choice and limits the use of private exclusives, which are crucial for serving high-end clients.
- eXp raised concerns over agents’ confusion with MLS rules and the fear of repercussions, urging for clearer policies to reduce uncertainty and empower agent decision-making.
- The regulator stressed the importance of informed consent and understanding MLS rules. She highlighted the layered authority of NAR, state boards, and local associations, urging agents to familiarize themselves with advertising policies to avoid violating regulations that could jeopardize their licenses.
The clash reflected the larger debate swirling in the real estate industry today: How do you balance transparency with broker competitiveness?
The Panel Breakdown by POV
Compass: Fighting for less regulation
“The seller deserves the choice, that’s it. And they deserve their choice, not someone else’s pre-described choice for them. What other industry regulates how you sell an asset?“ — Mark McLaughlin, Chief Real Estate Strategist at Compass
- Compass believes private exclusives used within their network aren’t anti-competitive but instead foster client privacy and specialization.
- McLaughlin’s argument hinges on the need for specialized tools to accommodate nuanced customer demands in high-end markets.
Zillow: Prioritizing transparency above all
“If a brokerage is publicly marketing a listing but not sharing it with the MLS, not sharing it with their competitors, then if they later change their mind and put it into the MLS, we’re not going to display it. You need to make a choice. Pick a path: private or public. But sort of having one foot in each camp is harmful for sellers; it’s harmful for the industry.“ — Errol Samuelson, a Chief Industry Development Officer at Zillow
- Zillow argued that transparency strengthens trust and accountability in the housing market.
- Samuelson cited that properties marketed outside the MLS are more prone to pricing inaccuracies due to limited competition.
eXp: A call for clarity
“There are different layers that each of us practitioners out there are trying to understand so that we don’t harm our sellers with what we think are the best intentions in marketing their property. The last thing we want is to harm them in any way because obviously we’re their fiduciary and trying to do the best for them at the root of all this.“ — Phil Sexton, Arizona Broker and Strategic Advisor at The Sibbach Team, EXP Realty
- Sexton emphasized the need for clearer rules to help agents avoid unintentionally harming their clients while fulfilling their fiduciary duties.
- Sexton stressed the challenges agents face in navigating overlapping regulations and policies, calling for greater clarity to empower professionals and protect sellers.
The Regulator: Promoting the importance of understanding the rules
“Whether you like it or not, there is a state jurisdiction that oversees your license and the license law in that state. And they’re the ones who hold your livelihood.“ – Anne Petit, Chair of the ARELLO Foundation, past Ohio Regulator
Petit underscored the authority of state jurisdictions and professional organizations in holding agents accountable, reminding them of their responsibility to comply with rules that protect consumers.
- She encouraged agents to fully understand the regulations governing advertising and MLS participation, emphasizing the importance of informed consent to ensure clarity and uphold trust in real estate practices.
Stats That Stuck With Us
- 2/3 of sellers did not know the difference between selling on the MLS and selling off the MLS
- Homes not listed on the MLS sold for an average of $5,000 less, according to a 2023-2024 study looking at 2 million transactions
What It Means for You
Whether or not you agree with Clear Cooperation, here’s what you need to keep in mind as an agent or broker navigating today’s industry dynamics:
- Know the Policy: Familiarize yourself with MLS rules in your area. This will help you stay compliant while brainstorming creative ways to serve your clients.
- Adapt to Transparency: The desire for client exclusivity is understandable, but don’t ignore the market power and exposure the MLS offers.
- Stay Ahead of Changes: Real estate is changing fast. Keep tabs on any tweaks or updates to Clear Cooperation policies, as these could directly impact your services.
The policies aren’t just dry regulations; they’re shaping the market you work in every day. Understanding them could determine whether you and your business stay ahead of the competition.
Want all the juicy details? Watch Colibri Real Estate’s webinar on-demand now.
