{"id":6163,"date":"2024-12-04T09:10:52","date_gmt":"2024-12-04T14:10:52","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6163"},"modified":"2024-12-04T09:10:55","modified_gmt":"2024-12-04T14:10:55","slug":"should-brokers-keep-for-sale-homes-hidden","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/should-brokers-keep-for-sale-homes-hidden\/","title":{"rendered":"Should Brokers Keep For-Sale Homes Hidden?"},"content":{"rendered":"\n
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It\u2019s the Real Estate Industry\u2019s Latest Debate<\/em> — Pocket Listings<\/h1>\n\n\n\n

Our regular readers know about recent changes in real estate practices. The big changes came out of settlements by the National Association of REALTORS\u00ae (NAR) and large brokerage firms in response to class-action court cases. NAR had to give up its long-running practice<\/a> of having sellers pay standard agent commissions when submitting listings through the Multiple Listing Services (MLS).<\/p>\n\n\n\n

Now, there\u2019s another controversy dividing the industry. The outcome will impact most people who sell and buy homes, because it could limit the information available to hopeful buyers.<\/p>\n\n\n\n\n\n\n\n

Transparent Listings: What\u2019s Not to Like?<\/h2>\n\n\n\n
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The National Association of REALTORS\u00ae established a transparency rule through its Clear Cooperation policy. NAR believes transparency at the listing phase was crucial. The concern? Informal networks, keeping knowledge for their limited audiences. Brokers outside of these circles couldn\u2019t find these homes or tell their clients about them.<\/p>\n\n\n\n

To have listings available to all members of NAR was a benefit to the market, and a benefit for agents who joined NAR.<\/p>\n\n\n\n

Under the policy, brokers and agents must get a home listed on the MLS within one business day of any form of public marketing \u2014 be it a for-sale sign, a post on Facebook, or any other method. Brokers can always fill in more details later, but a for-sale home must be publicly listed without delay.<\/p>\n\n\n\n

Once a home is on the MLS, the world knows. Anyone can see that the home is for sale when they visit popular real estate sites like Zillow, Trulia, Realtor.com<\/em>, and Redfin. That\u2019s a good thing for buyers. It\u2019s good for most sellers, too.<\/p>\n\n\n\n

Yes, there are a few sellers who are extremely concerned with privacy. But they already have a way to list privately. Most of the listing services let home sellers select that option. Again, very few do. And the reason is obvious. After all, to attract top dollar, sellers want to announce their homes\u2019 availability to as many potential buyers as possible. According to a survey cited in Axios, <\/em>homes listed in an MLS database fetched their sellers more than 17% more than comparable but unlisted homes. <\/p>\n\n\n\n

Small brokerage firms also benefit from keeping listings openly available.<\/p>\n\n\n\n

But some industry heavyweights want the practice retired.<\/p>\n\n\n\n

They say open listings attract sightseers. They say sellers don\u2019t want any past price cuts to show up in the public domain. They say some sellers want to keep their listings available only for a small circle of agents.<\/p>\n\n\n\n

Compass CEO Robert Reffkin would like to dump the public listing rule. Reffkin is one of the influential voices insisting sellers should be able to market homes privately.<\/p>\n\n\n\n

If Transparency Is Lost, Who Stands to Gain?<\/h2>\n\n\n\n

For buyers, any loss of listing transparency is a bad thing.<\/p>\n\n\n\n

For sellers who hope their homes will fetch the highest possible prices, private listings aren\u2019t helpful.<\/p>\n\n\n\n

That leaves the brokers. Some might want the ability to advertise a home through their brokerages only.<\/p>\n\n\n\n

Brokerages, after all, have been shaken up by several years of economic and legal upheaval. They\u2019re not sure what will happen in 2025. Some might believe they can get an edge in the market through private listings. They might prefer to place for-sale homes into private listing networks \u2013\u2013 sending the information to a certain, exclusive circle of agents.<\/p>\n\n\n\n

Indeed, changing to a system of pocket listings could enable a brokerage to match private sellers with home seekers from their own networks. This could mean receiving commissions from both seller and buyer.<\/p>\n\n\n\n

If buyers start picking agents with access to exclusive audiences, dual agency is likely to crop up much more often. As a rule, sellers and buyers should have their own agents \u2013 who loyally represent just one specific client in the deal. Learn more about <\/em><\/strong>your agent\u2019s fiduciary duties<\/em><\/strong><\/a>.<\/em><\/strong><\/em><\/strong><\/p>\n\n\n\n

An Elephant in the Room: Zillow\u2019s Data Dominance<\/h2>\n\n\n\n

And could it be that some industry players think Zillow has too much of a hold over the real estate market? It\u2019s ranked as the most popular real estate website<\/a> in the world.<\/p>\n\n\n\n

The Compass CEO points to Zillow\u2019s dominance, describing it this way:<\/p>\n\n\n\n

They were able to get access to all the listings and then charge referral fees on all the listings. It\u2019s a great business model and those are rules that you\u2019ve created, so they\u2019re the winner.<\/em><\/p>\n\n\n\n

OK. Information from the multiple listing services populates Zillow\u2019s website. And Zillow benefits financially from listings. But in this case what\u2019s good for Zillow is good for home buyers. They crave each and every latest and smallest detail that\u2019s published on the Zillow website.<\/p>\n\n\n\n

But there\u2019s another major reason to keep things transparent. Susan Daimler, the Zillow\u00ae Group\u2019s (now former<\/a>) president, says getting rid of Clear Cooperation would encourage the use of private networking to carry out discriminatory practices.<\/p>\n\n\n\n

Pocket listings, Daimler said, make real estate undemocratic. And they \u201calso perpetuate inequities that have long plagued our housing system.\u201d<\/p>\n\n\n\n

Groups representing Black real estate professionals as well as the Consumer Federation of America oppose private listing networks for these same reasons. The CEOs of Redfin and eXp have sided with those campaigning to uphold the MLS listing rule.<\/p>\n\n\n\n

When Will the Next Shoe Drop?<\/h2>\n\n\n\n

We\u2019ll keep our readers posted. The National Association of REALTORS\u00ae has, so far, wavered over its next steps. The public should know what\u2019s going on here, and play an active role in the policy debate.<\/p>\n\n\n\n

We at Deeds.com<\/em> are not affiliated with listing companies. We have no vested interest in the outcome of this debate. But we know our readers do.<\/p>\n\n\n\n

People in the market to sell or buy a home should expect the industry to show them the data. They should expect fair play. They should expect to find all the listings of the homes in a neighborhood, without for-profit brokerages acting as gatekeepers.<\/p>\n\n\n\n

Private listing networks will make buyers less informed, and offer them fewer options. In the current market, with housing availability at a low ebb, there\u2019s a lot to be said for an open information system.<\/p>\n\n\n\n

\n

Supporting References<\/strong><\/p>\n\n\n\n

Dylan Hodges for WISHTV via WISHTV.com \/ <\/em>Circle City Broadcasting, LLC (Channel 8 Indiana): Real Estate Industry Split Over Hidden Listings, Sparking Controversy<\/a> (Nov. 8, 2024; citing James Rodriguez of Business Insider).<\/p>\n\n\n\n

James Rodriguez for Business Insider<\/em> (via Insider.com<\/em>TM<\/sup>): Inside the Battle Over America\u2019s Hidden Homes \u2013 Realtors\u2019 Fight Over \u201cShadow Listings\u201d Spells Big Trouble for Homebuyers<\/a> (Oct. 31, 2024).<\/p>\n\n\n\n

Zillow President Susan Daimler for Zillow, via Zillow\u00ae Group.com<\/em>: Private Listing Networks Harm Sellers, Buyers, and Fair Housing<\/a> (Oct. 7, 2024).<\/p>\n\n\n\n

Sami Sparber for Axios via Axios.com<\/em>: Business \u2013 Why Some Homes for Sale Are Hidden From Buyers<\/a> (Nov. 23, 2024).<\/p>\n\n\n\n

Budge Huskey, CEO of Premier Sotheby\u2019s International Realty, for Herald-Tribune<\/em>: For Real Estate Professionals, New Debate Affects Homebuyers, Sellers<\/a> (Nov. 10, 2024).<\/p>\n\n\n\n

Vanessa Bowman for BAM<\/em>, via NowBAM.com<\/em>: Why Real Estate\u2019s Most Controversial Policy Remains in Limbo \u2014 The Clear Cooperation Debate<\/a> (Oct. 29, 2024).<\/p>\n\n\n\n

AJ Fabino for Benzinga<\/em>, via YahooFinance.com<\/em>:$17 Billion Zillow to Become the MLS, Predicts Compass CEO in NAR Showdown<\/a> (Nov. 15, 2024).<\/p>\n\n\n\n

And as linked.<\/p>\n\n\n\n

More on topics:  Finding a real estate agent<\/a>, Why is my home still on the internet<\/a><\/p>\n\n\n\n

Photo credits: Lisa Fotios<\/a> and Pixabay<\/a>, via Pexels\/Canva.<\/p>\n<\/div>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s the Real Estate Industry\u2019s Latest Debate — Pocket Listings Our regular readers know about recent changes in real estate practices. The big changes came out of settlements by the National Association of REALTORS\u00ae (NAR) and large brokerage firms in response to class-action court cases. NAR had to give up its long-running practice of having […]<\/p>\n","protected":false},"author":2,"featured_media":6164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[131],"tags":[2001,2004,2000,324,492,2003,2005,179,2006,2002,288],"class_list":["post-6163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-brokers","tag-clear-cooperation-policy","tag-hidden-listings","tag-home-buying","tag-mls","tag-pocket-listings","tag-private-networks","tag-real-estate","tag-real-estate-debate","tag-transparency-rules","tag-zillow"],"yoast_head":"\nShould Brokers Keep For-Sale Homes Hidden? - Deeds.com<\/title>\n<meta name=\"description\" content=\"Discover the debate dividing the real estate industry: Should brokers hide for-sale homes from public listings? 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