Is the MLS Doomed?

With Clear Cooperation in the crosshairs, many believe the end is nigh for centralized residential listings

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Much has been written about the NAR settlement and the resulting new rules that rolled out in August. Many believe these rules, which “decouple” buyers’ and sellers’ agents compensation—will eventually lead to lower commissions, more unrepresented buyers, and fewer licensed Realtors.

But even bigger changes may be afoot. Brokerage industry insiders are fretting over the coming end of NAR’s Clear Cooperation policy, which mandate that all listings be posted on the MLS. And with those rules may go the ecosystem in which residential listings are openly—and centrally—shared, fracturing listings across brokerages and fundamentally changing how we buy and sell homes.

The DOJ has already made it clear that it considers Clear Cooperation an anticompetitive practice. And last month, Compass CEO Robert Reffkin took the most high-profile shot at Clear Cooperation yet, arguing it violates the NAR’s own code of ethics as well as state laws. Now, it seems more likely than not that the NAR will be forced to gut Clear Cooperation, potentially putting an end to the MLS as we know it.

Today’s letter will tackle:

• Clear Cooperation and its role in the housing market;

• Challenges to Clear Cooperation and the MLS;

• How the end of Clear Cooperation will change the housing market;

• Winners and losers;

• Thoughts on what might come next.