MLS, association execs split on NAR’s delayed marketing policy
A majority of industry execs disapprove of how the national association has handled Clear Cooperation, and some questioned NAR’s motives, a recent survey found.
Key points:
- Over half of MLS and association leaders recently surveyed by T3 Sixty disapprove of how NAR rolled out its delayed marketing policy, with some saying the organization “dropped the ball.”
- Some respondents wondered if the new policy was designed to appease the “loud voice in the room.”
- Despite concerns about communication and policy implementation, a majority of respondents still approve of NAR’s performance overall.
Many executives who work within MLSs and associations appear to be split over how the National Association of Realtors is responding to the whirlwind of change in the residential real estate industry.
A recent T3 Sixty survey suggests confidence in NAR is wavering, but not entirely lost. Though many respondents expressed concern over the way NAR has handled its controversial Clear Cooperation Policy, a majority (51%) said they approve of NAR's performance overall, while only 28.3% disapprove.
Recent leadership changes at NAR are "a step in the right direction," the survey noted, with CEO Nykia Wright praised by respondents for her "no-nonsense approach" and President Kevin Sears applauded for "leading with transparency and providing facts." But perceived gaps in communication and the implementation of controversial policies have left the organization with a long way to go as it works on gaining back its members' trust.
Skepticism over delayed marketing, frustration around communication
The majority of the survey's 229 respondents (54%) disapproved of NAR's handling of the Clear Cooperation Policy and its March decision to add a delayed marketing option, while only 20.7% approved of the move and 21.7% had no opinion. Multiple Listing Options for Sellers, a complementary policy which enables sellers to delay listing their home on the Internet Data Exchange (IDX), took effect immediately, though MLS leaders were given until September 30 to implement it.
Many respondents took issue with a perceived lack of communication in how NAR announced its new policy, "describing it as rushed, vague, and lacking both supporting documentation and advance notice," the report said.
Others felt caught off guard: "The public launch without giving any MLS a heads up is surprising," one executive wrote as another agreed it "created significant challenges."
Some suggested the policy could undermine Clear Cooperation or lead to further confusion and complexity in real estate. Others viewed it as a reactive decision that was politically and legally prudent, but that shifts risk and much of the implementation and enforcement burden to local organizations.
NAR "dropped the ball" on its handling of the issue, one respondent said, while another suggested office exclusive carve-outs "undermine the cooperative nature of the MLS and carry extreme risk of misuse by brokers."
A move to appease certain industry players?
Several respondents described the CCP companion policy as an effort to "appease" a particular group or company, while others wondered if it was introduced to keep the association "out of the crosshairs of the FTC and DOJ."
While no specific brokerage was named in the report, some respondents might have been referring to Compass, which has retooled its strategies for private listings and "seller choice" to list off of the MLS, in their comments.
In issuing its delayed marketing policy, NAR "tried to appease the loud voice in the room by adding the new option," which "only creates more confusion in the industry," one survey respondent said. A second wrote, "I think the big brokerages are being courted here."
A challenging timeline
Only 21.3% of respondents said their existing MLS policies will be enough to meet the new policy's "spirit and intention." An equal share said changes will be needed, while another 49.2% said "some changes or adjustments" need to be made.
Though the implementation deadline is fast approaching, many respondents indicated their MLS hadn't yet settled on a specific delayed marketing period. A small share (5.7%) said it will last one day, and another 5.7% said it will span two to five days. But more than 4 in 10 respondents (41%) did not identify a specific timeline.
"September is too soon for vendors to adopt system-wide changes, yet NAR put the policy in effect right away," one respondent said. "We need to create new disclosures and sort out our MLS system for what will work, yet the policy is in effect."
Note: Real Estate News is an editorially independent division of T3 Sixty.