T
hinking big about residential real estate success requires a broad perspective. In the second part of a 2-part series, NextHome CEO James Dwiggins warns that eliminating the Clear Cooperation Policy (CCP) could lead to a future driven by greed and proposes revising it instead.

    My family's real estate legacy dates back to 1967, and I've spent my entire life in this business. I remember when agents had to call every office to find listings, as the MLS book was outdated by the time it was printed. We take for granted the efficiency and fairness the MLS brings today. From 2012 to 2020, I saw firsthand how large companies hoarded inventory, leaving smaller brokerages at a disadvantage.

    If we scrap CCP, residential real estate could look like this: small brokerages would struggle to compete with large ones that hoard listings; agents would have to search multiple websites or call every brokerage; buyers might not find all available listings; and Zillow and other portals might pivot or switch to revenue-sharing models. This would disrupt the business model of these companies, making them more powerful and potentially eliminating MLSs.

    This is a future we're moving toward if CCP is eliminated – one driven by greed, just as it was before the policy was enacted. The current system isn't perfect, but it's the best in the world. Other countries are trying to copy and implement something similar.

    Here's my proposal for revising CCP: eliminate the "Office Exclusives" carve-out, which only benefits brokerages; create a disclosure/opt-out form that explains the pros and cons of having a home on or off the MLS; conduct local studies to estimate average sale prices on and off the MLS; require sellers to sign the form and speak with an MLS representative. This would help eliminate steering by agents or brokerages and ensure informed decisions.

    I believe 99% of sellers will opt to list their homes on the MLS when given the full picture. Let's not allow greed to take us back 20 years. Removing CCP will harm consumers and put businesses at risk.