R
eal estate commissions aren't the only industry practice under scrutiny. Critics argue that a widely followed National Association of Realtors policy hides certain listings from online home shoppers, making it difficult for sellers to get their homes noticed without hiring an agent.
The "no-commingling" rule requires multiple listing services (MLS) to display MLS-listed properties separately from non-MLS listings, such as houses sold directly by homeowners or builders. This means users on websites like Zillow often need to toggle between tabs or adjust filters to see all listings.
Some opponents say this policy makes it nearly impossible for sellers without an agent to get their homes seen online. However, real estate professionals argue that the rule helps protect content providers and gives them a competitive advantage.
The U.S. Department of Justice is looking into the NAR's no-commingling rule after previously tangling with the trade group over several policies. Federal prosecutors say even if adoption is voluntary, it can still violate antitrust laws. The NAR disputes these claims, citing a judge's dismissal of similar allegations.
Interestingly, 90% of recent home sellers received help from an agent, while 6% sold their homes themselves, according to NAR research. This has led some to question the need for the no-commingling rule. In fact, one Colorado MLS dropped the rule in 2022, and Zillow and Redfin encouraged others to follow suit.
The hope is that all multiple listing services will abandon the no-commingling rule, allowing sellers more flexibility in marketing their homes online.
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