The Homeowner on the Cutting Room Floor

Many industry experts (WAV Group, Anywhere, RedFin, 1000Watt, Compass, Rayze, the list goes on) have weighed in on the NAR rules about property marketing. The NAR rules — and the consequences for non-compliance — are significant.

My observation is that many of these writings leave the voice of the homeowner on the “cutting room floor.”

Some observations…

NAR’s consumer-facing website states the following:

At best, this is misleading to a consumer. I am not aware of a form that permits a sustained, bespoke non-MLS marketing campaign. In NAR-controlled MLS markets, the rules state that public property marketing can begin only one business day before the property is on the MLS.

Property marketing strategies for our clients should rest at the intersection of our clients’ personal objectives and our real estate professionals’ fiduciary duty, experience, judgement, marketing knowledge, and execution of our clients’ objectives.

A mandated set of NAR/MLS rules is not appropriate for all – one size fits one – one size does not fit all.

There’s plenty of noise in the industry while the homeowner is being railroaded.

Who is the NAR (and the MLS for that matter) to tell homeowners how they must sell their homes, one of the most significant assets they own? No trade association rules how consumers sell other luxury goods like fine jewelry, a vintage car, a private art collection, or a family’s personal treasures – however large or small. Each of these can be worth more than the average sale price of a US home.

Homebuilders, many publicly traded, do not put all their inventory on the MLS. In fact, their non-listed inventory may sell for a higher price. Why does a senior citizen selling their most significant asset not get the same opportunity?

Last I checked, consumers do not have access to MLS data – so the Fair Housing claim doesn’t apply here. Consumers can search listings on dozens of sites, from portals to brokers, but not on the MLS.

The DOJ wants to maximize competition – this means innovation not standardization. Real estate professionals are among the finest entrepreneurs in the world. Maximizing a seller’s proceeds does not require maximum exposure – it simply requires the right exposure, to the right audience, to meet the seller’s objectives.

If you follow the money:

• Real estate professionals are rewarded for a successful trade that both the buyer and seller independently agreed to – including price and all related terms.
• NAR & the MLSs get paid by agent count – no performance required, just annual dues. You and I know NAR & the MLSs’ feel their cash flow being threatened!
• Portals get paid largely by an advertising model but also through selling leads (based on a broker’s listings) to participate in the proceeds (commissions) of referred transactions.

Where is the homeowner’s voice? The average homeowner/homebuyer has never heard of CCP. It’s merely a lifeline of NAR and the MLSs.

It's time to eliminate CCP and to radically reorganize NAR and its self-serving rules. We are NAR clients. We pay the bills. 

We can do this together or ask the DOJ and expensive lawyers to step in.

This is “Where We Are Now!”