realestate

Brokerages face 3 key choices post-Clear Cooperation ruling

NAR's CCP delay sparks industry leaders to advise firms on "counter move" strategies.

A
s the National Association of Realtors (NAR) preserves Clear Cooperation Policy (CCP), industry leaders warn brokerages to prepare for a competitive landscape. RealScout CEO Andrew Flachner and T3 Sixty CEO Jack Miller identified three possible outcomes, urging firms to adapt quickly or risk being left behind.

    The fate of CCP will depend on local MLSs, which must implement NAR's Multiple Listing Options for Sellers policy by September 30th. Flachner notes that the decision doesn't address DOJ concerns, potentially leading to further action. "It's not the final chapter," he cautions.

    Three scenarios are likely to unfold:

    1. **Status Quo**: Some brokerages will continue listing properties on the MLS as usual. However, this depends on local MLS enforcement, which may vary.

    2. **Walled Gardens**: If a local MLS doesn't enforce CCP, brokers might opt for "walled gardens," keeping listings internal before marketing them publicly. This could lead to consolidation and smaller firms struggling to compete against larger ones hoarding inventory.

    3. **Federated Listings**: In fragmented markets, brokerages may form alliances or pool their listings to stay competitive. This path would be messy but better for consumers and smaller companies than the "walled garden" alternative.

    Flachner emphasizes that very few brokerages will have time to react, as early movers have already started adapting months ago. Miller advises leaders to focus on local market dynamics: "It's not about right or wrong; it's about being competitive." Brokerages must be prepared for all scenarios or risk being outmaneuvered by companies with a counter move in place.

Financial brokers consider options after Clear Cooperation ruling in US real estate market.