Jeff’s Corner: Nearing 5 Years with Clear Cooperation Policy

A World Before CCP 

Before CCP was implemented, I worked as an agent in the Midwest market. At that time, 20% or more of listings in some zip codes were held off the market in private listing networks. That meant my buyers never got to see one or two out of every five homes they were qualified to buy — unless I was in the right agent “clique,” on the right social media page or subscribed to the right network. In some markets, such as Southern California, agents were having to join three, six, even 11 different sites to simply gain access to a broad range of listings for their buyers. 

In May 2020, thousands of REALTORS^® gathered in Washington, DC, to debate this problem and the proposed solution. The arguments for and against them are similar to today: don’t limit seller choices on how to market their homes, vs. limiting buyer choices, fair housing concerns, real agent liabilities for guiding sellers to sell “off market,” and the real and sometimes staggering business costs to agents to be able to find properties hidden on private networks.

Overwhelmingly, CCP passed, with the requirement that listing brokers must submit a property to the MLS for cooperation with other MLS participants within one day of marketing the property to the public. 

Why CCP Matters

In the continued debate over CCP, there have been increased concerns about policy violations, which is making people question the purpose and importance of CCP. We know that, like everything else, CCP is not perfect. It’s impossible to fit every possible seller scenario into this policy. Yet despite the flaws, I believe CCP has a purpose and enables the MLS to work at its best. 

Here’s a story to help highlight how the MLS and CCP work together. A mentor of mine told me this story a long time ago about a medieval village. The villagers all tended a communal garden. They shared the work, and the community benefited from the bounty that was produced by their collective labors. Life was good. But then a new family moved in and refused to tend the garden. They took from the garden, but did not contribute. Others grew frustrated and one by one they quit tending to the garden. The garden failed. The community failed. The MLS is a garden. You benefit from it and so do your clients. Plant in the garden and everyone benefits. Neglect the garden, and no one wins. 

What You Should Know

IRES wants to help educate and enable you to work within the MLS rules you’ve agreed to as a Subscriber, rather than police violations and levy fines. So, instead of debating something that has already been debated, let me leave you with a few reminders and thoughts:

• If you are willing to publicly advertise, seller privacy is not the issue. 
• There are an increasing number of studies that find selling off market leaves money on the table for sellers. Check out these recent findings from Zillow. Some have argued otherwise, but I have yet to see concrete data that supports the counter argument at scale.
• Your guidance is powerful. Sellers listen to you. I do not believe most sellers conclude on their own that limiting exposure of their listing is in their best interest. If you believe an open, transparent real estate market where all listings gain the maximum exposure is in your seller’s best interest, and in the public interest, then advise them accordingly. 
• The MLS has enduring business value beyond the now-banned offer of compensation. As shared in last month’s Stat Shot, IRES saw an uptick in closed deals after that change. Listing inventories are growing, and early indications are that sales numbers are starting to rebound from a two-year dip.
• Cooperation is still a requirement. It’s part of what makes an MLS work. 

IRES is a REALTOR^® owned, but not REALTOR^® exclusive MLS, which means the rules apply to all subscribers alike. The ideas of cooperation and mandatory submission run much deeper than CCP. I encourage you to refresh your knowledge of our rules and policies here.