Compass CEO Criticizes NAR’s Clear Cooperation Policy as “Anti-Homeowner”

Robert Reffkin at Inman Connect New York Thursday.Photo byInman

Robert Reffkin, CEO of Compass, has launched a strong critique of the National Association of Realtors’ (NAR) “clear cooperation policy,” labeling it as “anti-homeowner” and predicting its eventual demise. His remarks came during Compass’s Q2 earnings call, where he outlined his vision for expanding the company’s digital footprint and possibly challenging existing real estate portals.

Reffkin’s Critique of Clear Cooperation

Introduced in 2019, the clear cooperation policy mandates that brokers submit listings to their local multiple listing services (MLS) within 24 hours of marketing them. The policy’s primary aim is to eliminate pocket listings—properties marketed privately to select agents—which could potentially lead to discrimination or unequal access to listings.

Reffkin, however, argues that this policy does more harm than good for homeowners. He suggests that clear cooperation imposes “negative insights” on listings, such as days on market and price reductions, which he believes can detract from a property’s value. “Clear cooperation is anti-homeowner,” Reffkin asserted, suggesting that the policy forces homeowners to expose their listings to potential disadvantages.

In contrast, Reffkin advocates for “private exclusives,” where properties are marketed outside the MLS. He believes this approach allows homeowners to “test the market” without the adverse effects of public MLS exposure. Citing practices in countries like Australia, where such negative data points are not displayed, Reffkin argues that homeowners should have the option to keep their listings from immediate public scrutiny.

Legal and Regulatory Challenges

Reffkin’s comments come amid ongoing legal challenges and regulatory scrutiny surrounding the clear cooperation policy. The Top Agent Network (TAN) has revived its lawsuit against NAR, arguing that the policy violates antitrust laws. Although a federal district court previously dismissed the case, it was reinstated by an appeals court last year. Additionally, the Department of Justice (DOJ) has reopened its investigation into the policy, further complicating the regulatory landscape.

Reffkin highlighted these developments during the earnings call, noting that the DOJ’s investigation and TAN’s revived lawsuits could signal trouble for the policy’s future. “The DOJ has reopened their investigation into Clear Cooperation, and TAN has revived their lawsuits, claiming the policy breaks antitrust laws,” Reffkin said.

Future Outlook

Despite his criticism of the current policy, Reffkin acknowledges that the real estate industry is moving towards a centralized inventory system. However, he foresees that this process may not be as instantaneous as it is now. “The vast majority of inventory will end up coming to a centralized place,” Reffkin stated, “but there are reasons for homeowners to want their listings to not instantly go public or in the MLS.”

Reffkin’s comments reflect broader debates within the real estate industry about transparency, market access, and consumer protection. As the industry navigates these issues, the future of policies like clear cooperation remains uncertain.