Why Clear Cooperation Matters and What You Need to Know
In a significant development within the real estate industry, Compass, a major brokerage with a big footprint here in Seattle, has filed a lawsuit against the Northwest Multiple Listing Service (NWMLS).
This legal battle centers on Compass’s use of “private exclusive” listings, which are not immediately shared with the broader agent community, potentially limiting exposure for sellers and access for buyers.
The NWMLS contends that such practices violate its Clear Cooperation Policy, designed to ensure transparency and fairness in the marketplace.
Understanding Clear Cooperation:
The Clear Cooperation Policy, established by the National Association of REALTORS® (NAR) in 2019, mandates that listings be submitted to the MLS within one business day of public marketing.
The purpose of this policy is to prevent “pocket listings”—situations where agents keep listings off the MLS and promote them privately to a limited network of buyers. While this may seem beneficial to a seller in some cases, it can actually reduce competition, limit exposure, and create an uneven playing field for both buyers and other agents.
As a REALTOR® and a member of the MLS, I fully support this policy because it helps protect your interests, whether you’re listing your home or searching for the right one to buy. Equal access to information is the foundation of a healthy, competitive real estate market.
But not everyone sees it that way.
Let’s take a closer look at the controversy surrounding this rule—and why companies like Compass are challenging its enforcement.
The Core of the Dispute:
Compass argues that the NWMLS’s enforcement of this policy restricts seller choice and hinders innovative marketing strategies. They claim that private exclusives allow sellers to test the market discreetly before going public.
However, critics, including NWMLS and other industry leaders, assert that such practices can limit competition, potentially leading to lower offers for sellers and reduced options for buyers.
Gary Keller’s Perspective:
Gary Keller, Executive Chairman of Keller Williams Realty, emphasizes the importance of transparency in real estate transactions.
He argues that broad exposure through the MLS ensures that sellers receive the best possible offers and that buyers have equal access to available properties.
As the old Progressive insurance commercial taught us, “When insurance companies compete, you win.” And similarly, when buyers compete, sellers win.
Implications for the Industry:
This lawsuit could have far-reaching consequences for how homes are marketed and sold.
If Compass prevails, it may lead to an increase in private listings, potentially reducing the effectiveness of the MLS system.
Conversely, a decision favoring NWMLS could reinforce the importance of shared listings and transparent practices.
What Does This Mean For Buyers And Sellers?
As the legal proceedings unfold, it’s crucial for buyers and sellers to understand the implications of private exclusive listings.
While discretion can be valuable in certain situations, the NWMLS already has many provisions for “undisclosed” information which is commonly used for ultra-luxury listings.
The broad market exposure from “everyone” seeing a listing typically results in better outcomes for all parties involved.
Staying informed and working with knowledgeable real estate professionals can help navigate these complexities.
Need Expert Guidance in a Shifting Market?
Whether you’re buying, selling, or simply trying to make sense of all the industry changes, it’s more important than ever to have a trusted advisor by your side. As a Seattle Realtor and experienced investor, I stay on top of market shifts, legal updates, and local trends—so you don’t have to.
If you’d like personalized advice or want to talk through your options, let’s connect.