Robert Reffkin says he’s not trying to ‘destroy the MLS’ 

ORLANDO — Since founding Compass 14 years ago, Robert Reffkin has been making waves in the industry — and his appearance at the T3 Leadership Summit on Friday was no exception.

During a fiery presentation, the Compass International Holdings CEO shared his views on MLSs, competition and the motivation behind CIH's acquisition spree — making claims that, at times, caused murmurings among the audience of real estate executives.

Not out to 'destroy' the MLS

Reffkin's speaking appearance came just hours after CIH and MRED, a Chicago-based MLS, announced that MRED will open access to all agents across the country, and Compass agents will be the first to join. 

Launching into what appeared to be a proactive defense, Reffkin said he did not "want to destroy the MLS." He also added that he supported mutual cooperation, but he did not support the "major requirements of" third-party sites outside of the MLS.

The CEO then shared several slides over the next 10 minutes that outlined why his company was in the right to push for the wider use of private listings, using legal arguments about fiduciary and statutory duty, a Federal Trade Commission report on residential real estate from 1983, NAR policies on MLS antitrust compliance from the 1970s, Zillow documents from discovery in their lawsuit with Compass and proposed amendments at California Regional Multiple Listing Service (CRMLS).

Reffkin's bottom line seemed to be that private listings and "seller choice" are perfectly legal — and the industry should be making it easier for agents to utilize more selling options.

Not trying to 'burn down the house'

T3 Sixty CEO Jack Miller, who was in conversation with Reffkin on stage, noted that some people have suggested the Compass CEO is "burning down the house with people inside."

Reffkin countered that he simply wants MLSs to accept all listing types, including private exclusives — so he's not trying to "burn down the house" but rather to expand it. He reiterated his argument that MLSs are not the government, emphasizing that only the government should be able to make and enforce rules about how a seller can market their home. Coming Soon listings are permitted under many of the recent state bills targeting private listings, Reffkin added.

When Miller started to bring up the collective good of the industry, Reffkin quickly interjected, arguing that "there's not supposed to be an industry" — implying that brokerage companies should be competing with each other for the good of the consumer rather than operating as part of a unified whole.

The brokerage leader likened the situation to the proliferation of streaming services. While some consider the rise of subscription-based services to be a hassle for the consumer, Reffkin said he sees it as a positive evolution, because it makes services compete against one another and in the process, creates better content.

How the MLS operates — and what Reffkin wants to see change

MLSs, Reffkin claimed, have been allowed to make their own rules because they assume agents have no other option but to subscribe.

That mentality of not having to compete for subscribers, Reffkin subtly suggested, may soon be disrupted in light of MRED's expansion.

The CEO went on to say that he "will give everything I can" to support the growth of industry players that advocate for more choices for sellers and listing agents. That vow, Reffkin noted, contributed to CIH's collaboration with MRED — and brought him to the stage. 

His goal in speaking to conference attendees, he said, was to seek help from the industry's leaders — and perhaps MLS leaders in particular — to loosen restrictions and follow MRED's lead in "managing our information."

CRMLS supports flexibility, but not limited access

In response to Reffkin's comments on Friday, which mentioned CRMLS specifically, CRMLS CEO Art Carter told Real Estate News that the MLS has always been grounded in "equal access to opportunity" for participants. That's why the MLS offers an "Internet = No" listing option, Carter noted, which allows for flexibility without compromising transparency.

"What we cannot support are models that restrict access under the banner of 'seller choice,' when in practice they risk limiting exposure and concentrating opportunity in ways that do not serve consumers or the broader marketplace," Carter said in an email.

Is Compass big enough now? 

Reffkin argued that his company's acquisition of Anywhere would have never happened if the brokerage and its agents hadn't faced barriers to distributing listings, such as the restrictions imposed by Northwest MLS and Zillow's ban on certain pre-marketed and private listings.

"You all are sending a clear message to us that I can't protect our agents without size," Reffkin said.

When asked if the firm was now large enough for Reffkin to achieve what he wanted with listings, the CEO said that if the status quo does not change — and if, for instance, Compass agents continue to be forced to do things like give "all of our data to third-party portals" — then the brokerage will continue to increase its size.

Willing to work constructively

Despite his somewhat combative rhetoric, Reffkin suggested at the end of his session that he is still open to working with other industry leaders to find some kind of common-ground solution — including Gary Keller and James Dwiggins, whom he frequently disagrees with.

"I really do think if we were all able to sit down at the same table for more than a day or two, I'm sure we could actually come to a solution."

Editor's note: Real Estate News is an editorially independent division of T3 Sixty.