realestate

Reffkin Misrepresents Findings of Clear Cooperation Study

More than a third of consumers prefer private listings: but it's not that straightforward, claims 1000watt CEO.

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recent survey by 1000watt found that 35% of homeowners initially preferred to sell their home off the MLS, but this number dropped significantly after they were shown data indicating homes sold for less when marketed and sold off the MLS. The study author notes that Compass CEO Robert Reffkin "cherry-picked" the data in his Instagram post, where he cited the 35% stat as evidence to eliminate the Clear Cooperation Policy (CCP). Reffkin argued that agents are forced to breach their fiduciary duty by following the CCP.

    However, 1000watt CEO Brian Boero disputes this interpretation, saying the findings were more nuanced and ambiguous than Reffkin suggested. The survey of 2,000 homeowners found that when presented with two scenarios - one on MLS and one off-MLS - 35% of prospective sellers chose to start with an off-MLS listing. However, after being informed about research showing homes sold for approximately 15% less when marketed off the MLS, nearly three-quarters of those individuals changed their minds.

    The numbers were even higher among experienced sellers, with 73% initially choosing the non-MLS option, but dropping to 8% after being presented with the same data. Boero notes that Reffkin's post "made it sound like there was an organic upswell of resentment towards being forced to put their home on the MLS," which is not supported by the study's findings.

    The future of Clear Cooperation remains uncertain, with no specific date for resolution set by the NAR Leadership Team. Major players in the industry continue to express opposing views on the topic, with some advocating for an end to the policy and others supporting its continuation with alterations. Boero simplifies the issue, stating that it ultimately comes down to whether the industry wants an open or closed housing market.

Reffkin misrepresents findings of study on cooperation in real estate industry.