The Clear Cooperation Policy was voted on and approved at the REALTORS® Conference & Expo in 2019, and goes into effect May 1, 2020. It aims to deter off market a.k.a. ‘pocket’ listings amongst the real estate community across the U.S. Here’s a summary of FAQ’s and what it means for our market here in San Francisco where off market listings are popular.
WHAT DO I NEED TO REALLY KNOW ABOUT THIS POLICY?
Within one (1) business day of marketing a property to the public, the listing broker must submit the listing to the MLS for cooperation with other MLS participants. Public marketing includes, but is not limited to, flyers displayed in windows, yard signs, digital marketing on public facing websites, brokerage website displays (including IDX and VOW - think Zillow and Redfin), digital communications marketing (email blasts), multi-brokerage listing sharing networks, and applications available to the general public.
DOES THIS MEAN I HAVE TO LIST MY PROPERTY ON THE MLS?
No. A private listing is referred to as an "office exclusive" meaning the listing is private and will not be entered into MLS, but it cannot be shared outside of your listing agent’s brokerage. Office exclusive listings are an important option for sellers concerned about privacy and wide exposure of their property being for sale. In an office exclusive listing, direct promotion of the listing between the brokers and licensees affiliated with the listing brokerage, and one-to-one promotion between these licensees and their clients, is not considered public advertising.
Common examples of where this remains necessary include divorce situations and celebrity clients.
WHAT HAPPENS TO ‘COMING SOON’ PROPERTIES?
Coming Soon properties can still be entered into the MLS prior to going active. This Coming Soon status is not public, but agents from other brokerages are able to see it. Coming Soon does not affect your days on market, and the property will automatically go “active” on the on market date inputted into the system by your agent.
CAN MY AGENT STILL POST MY LISTING TO TOP AGENT NETWORK (TAN)?
Yes, but once they do so, your property must be submitted to MLS as either a Coming Soon or Active listing within one (1) business day, or have been entered prior to posting.
WHY IS THIS CHANGE BEING MADE?
Brokers and MLSs from across the country asked NAR to consider policy that will reinforce the consumer benefits of cooperation. The MLS creates an efficient marketplace and reinforces the pro-competitive, pro-consumer benefits that REALTORS® have long sought to support. After months of discussion and consideration within NAR’s MLS Technology and Emerging Issues Advisory Board, this proposal was brought forth for the industry to discuss and consider, then approved by NAR's Board of Directors.
IS THERE ANY ADVANTAGE TO LISTING OFF MARKET?
Yes, but it really depends on your situation and goals. Talk about these openly with your agent. The new rule is really meant to provide the consumer with full exposure to the marketplace and discourage the practice of dual agents (where your agent is representing both the seller and buyer), and provide a greater sense of cooperation among brokerages.
HOW WILL THIS WORK IN SAN FRANCISCO?
We will most likely see more properties come to MLS. However, as Compass has the majority of the marketshare in San Francisco, many listings may stay off market as a Private Exclusive within the Compass brokerage. In addition, we may start to see more listings come to market on the MLS that are owner occupied, and not staged or prepped. We may also see an uptick of sales on the weekend - the law stipulates that listings have to be entered (1) one business day after they are marketed publicly, so if an agent posts it say to Instagram, TAN, or via an eblast on a Friday, it’s not required to be entered into MLS until Monday, so this could create some competition on the weekends, with buyers and agents that are in the know.
COMPASS PRIVATE EXCLUSIVE PROGRAM
If you choose to sell your property off market, with a Compass agent, your listing will be shared among Compass agents only. This could be a good strategy to test pricing and get feedback on your home before sharing it with the broader market.
For more information about this policy, please go here.