The debate around NAR’s Clear Cooperation Policy continues among brokers, MLSs and other real estate industry players. Opinions are sharply divided on this policy, which dictates how and when property listings are created and shared.
This polarizing debate threatens the MLS operating model that has successfully served agents and consumers for decades with the most digital, transparent and consumer-friendly housing marketplace in the world. Before drastic changes are made, it’s worth noting that existing technology solutions already provide much of the flexibility being debated. Understanding these technical capabilities can help find a middle ground in the policy debate.
CoreLogic has a unique vantage point in the industry as the leading provider of software to multiple listing services and the agents they serve and can shed light on these technical capabilities. CoreLogic’s market-leading listing management platform, Matrix, is used by about two-thirds (approximately one million) of the industry’s real estate agents to create, manage and search for residential listings.
The average agent accesses the Matrix system three times a day. CoreLogic also provides a leading data distribution platform, Trestle, which is used by more than 135 MLSs in the U.S. to distribute data in standardized formats to more than 750 brokers, portals and technology providers.
Matrix and Trestle can be used together to support MLSs, brokers and industry players regardless of which direction the Clear Cooperation Policy is decided, for example:
- Broker’s agents enter all their listings into the MLS system (Matrix)
- The Broker’s agent chooses the appropriate status when entering a listing, including a “Private” status
- Matrix is able to include their “private listing” into the data feedback to the appropriate broker in near real-time (via Trestle)
- Listings marked private remain private to the broker and only that broker
- Listings marked as private are only available in any searches by the broker’s own agents or the broker’s agents’ clients.
- Listings marked as private will be suppressed from broader syndication
- Listings marked as “private” can be changed to “public” based on any trigger mechanism aligned between the brokers and the MLS
- Trigger mechanisms can include:
- Agent driven: Agent changes status of listing
- Time-bound e.g. After 10 days
- Activity bound: Marketing, showing etc.
- Once listings switch from private to public, normal syndication and availability of listings to the broader agent population starts
A technical scenario like this one could be a win-win for all parties:
- Brokers: Get more control and flexibility over their listings to support their clients and business models, but with appropriate levels of transparency to ensure a thriving housing ecosystem. Brokers also get access to a data feed of their own listings both private and public, standardized across MLSs, saving them significant tech expense at a time when budgets are tight.
- Agents: No dual entry of listings, ensuring listings remain in standardized formats, and switching a listing from private to public may be as simple as clicking a button.
- MLS: Remains the central repository for all listings in local markets, enabling appropriate compliance across all transactions. This will also ensure MLSs continue to provide an aggregated full market picture as to what is happening at a local level.
- Homeowners: More options on how their home is listed.
The scenarios outlined above can be implemented in weeks, as the infrastructure already exists, rather than dismantling the entire MLS operating model. While CoreLogic products have been used in the example above, CoreLogic is not the only company that can provide these capabilities.
The MLS and broker cooperative system in the U.S. has enabled transparency, broad distribution and facilitated a robust housing market that in many ways is the envy of the world. There is built-in technical flexibility within the MLS systems that can allow for changes in policy. Regardless of which direction the policy takes the industry, CoreLogic is here to support the people that help it thrive.
Devi Mateti is the President of Enterprise Digital Solutions at CoreLogic. Connect with him on LinkedIn.