Realtor.com CEO Damian Eales has waded into the debate surrounding the National Association of Realtors’ (NAR) Clear Cooperation Policy, voicing support for the organization’s rules while belittling the private marketplace argument as being unsound and unethical.
“Realtor.com fully supports the principles and policy of Clear Cooperation because it is at the heart of the most consumer friendly marketplace on the planet,” said Eales in a corporate blog posting. “The genesis of this open marketplace was some 30 years ago when NAR and MLSs facilitated the digitization of listings nationwide, the adoption of common standards for information sharing, and the broadcast of those listings across the nascent internet – originally only on Realtor.com.”
Eales added, “Having sold homes in Australia – primarily through live auctions – I wouldn’t hesitate to spend significant money on leading real estate platforms. The value of reaching the widest possible pool of buyers is undeniable. I learned this the hard way with my first property, which was ‘passed in’ at auction – meaning there weren’t enough bidders and the home didn’t sell. In trying to save money, I cut corners on advertising and failed to attract all potential buyers. It was a costly reminder that being penny wise can often be pound-foolish.”
Eales dismissed the concept of seller choice by declaring it an “anathema to common sense that more and more sellers want the “choice” of fewer free eyeballs – which incontrovertibly leads to less competition in the form of fewer buyers, fewer offers and potentially a lower sale price.” He also chastised “those who should know better, and those who have a fiduciary obligation to serve their client’s interests” into limiting who has access to their property listings.
“Brokers who facilitate private marketplaces are likely to find themselves on the wrong side of history by putting themselves in the bullseye of litigation from both sellers who feel shortchanged, as well as buyers who claim they were selectively excluded from seeing a property,” he continued. “Our industry needs neither the reality nor the perception of the type of steering that Newsday exposed in 2019, the same year the Clear Cooperation Policy was adopted. Selling a secret is no way to start a bidding war and will surely result in shortchanged sellers, and at the same time may be used by the less scrupulous for steering.”
Eales further differentiated Realtor.com from competitors Zillow and Redfin, pointing out that their “new policy requires listings to be entered into the MLS within one day of public marketing – our obligations under our MLS agreements require us to show all listings. This is not to say that we won’t be open to working with MLSs who want us to better enforce the principles and policy of Clear Cooperation.”
Eales also predicted sellers will react angrily when they realize brokers who steered their clients into private marketplace listings, where the buyer pool would be much more limited.
“To these uncooperative listing agents and sellers I say, if you want to catch a big fish, avoid small ponds,” he concluded.
Very well said. This approach makes the most sense and delivers the largest market to both the seller and the buyer. Anyone who wants to keep their listing secret is doing so for their benefit, or what they believe is their benefit. It is not for the benefit of sellers or buyers
If the client understands their options and the consequences of their actions, it should be up to them. Realtor.com is a private business who is only looking out for themselves. I don’t choose to give them, control over our freedom of speech and control over information. It is actually an arrogant position to ask for that kind of authority. It’s just a website with many others to choose from.