CAR, CRMLS align on transparency, push back on private listings 

The California Association of Realtors and California Regional MLS appear to be aligned in their desire to ensure all buyers and sellers get equal treatment and exposure. But the organizations play different — though intrinsically linked — roles in getting there. 

Office exclusive exceptions? CAR sees no benefit

In a statement shared with Real Estate News over email, CAR President Heather Ozur indicated that the state association "would support a modification to NAR's Clear Cooperation Policy to remove the office exclusives carve-out," specifically due to concern for "fair housing principles and full transparency for consumers" — themes that a growing chorus of leaders in the industry have drawn attention to in recent months. 

"Numerous studies make clear that marketing a property through the MLS gives the widest exposure, producing the best financial outcomes for nearly all consumers," she explained. While Ozur didn't cite specific studies, recent reports from Bright MLS and Zillow suggest that, at best, private listings offer no benefit to sellers, or at worst, sellers can leave a lot of money on the table when listing off of the MLS. 

Compass has consistently argued the opposite in recent months, saying that its 3-phase marketing strategy — which starts with a private exclusive listing — translates to real value for sellers.

Only a small fraction of homes never hit the MLS, CRMLS finds

New data from CRMLS, the country's largest MLS with more than 100,000 subscribers, suggests that very few properties are first listed off of the MLS — and those that are take longer to sell. 

Of the 24,262 homes listed for sale in the CRMLS territory in March, more than 89% went straight to the MLS and spent an average of 67 days on the market. Just over 9% of the homes listed in March were marketed off the MLS initially and later added to it. Those homes were on the market for an average of 87 days. Only 1.35% of all listings never make it to the MLS, CRMLS's data shows.

In April, CRMLS — whose coverage area includes a handful of the nation's most expensive housing markets — pledged that it would not implement the National Association of Realtors' delayed marketing policy or create a new private listing status. Art Carter, CRMLS's CEO, told Real Estate News that the organization has not changed its position, and the MLS has set its pre-marketing period to zero days. 

"Part of that policy is that we get to set the marketing timeline, and our board essentially decided that that marketing timeline is going to be zero," Carter said. "We're not going to adopt anything from a system change standpoint. We're not going to input a new status."

Carter has been a vocal critic of the industry's recent private listings push and has highlighted risks that off-MLS listings present for consumers and agents alike.

How CRMLS has responded to Compass

As for Compass' private exclusives push in California, Carter explained that CRMLS has not leveled fines or penalties on Compass agents who have participated in the effort, and there has been no recent saber rattling or threats of lawsuits against the MLS, unlike in Washington where Compass has sued the broker-owned NWMLS over "anti-competitive" rules that prevent the brokerage from enacting its 3-phase marketing strategy in Seattle. 

Carter was unable to comment on CAR's statement and whether or not CRMLS would back efforts to remove the office exclusive carve-out in NAR's Clear Cooperation Policy, but the two organizations are aligned in supporting an open and transparent housing market. Carter remains leery of private exclusives and said it's something his organization will continue to watch. 

"You know, at some point, somebody's got to draw a line and ask, is this in the consumer's best interest? I would say that the majority of my members feel that it is not in the consumer's best interest and it's something that we want to take a look at."