Real Estate: Civil War
There is a civil war unfolding in the real estate world right now, and it's being fought not with signs and protests, but in boardrooms, listing platforms and state legislatures. It's a fight over one core issue: Should your data be a private weapon or a public good?
Washington State just drew a line in the sand by banning 'private listings (also known as pocket listings), this move might look like local police, buts it's a timebomb in a national battle over control, access and at its core, fairness in housing.
Two Warring Camps
On one side: brokers and agents who believe listings are an asset to control, an asset that they can use to selectively market quietly, keeping a transaction 'in-house' and delivering greater profits for their corporate overlords by double-dipping on commission. It's about exclusivity, power but rarely seller benefit. Gary Keller said it himself "We have to own the data, we have to own the software. And if anyone says no to those two things, we pick up our stuff and walk out of the room. We're done with them" Recently Keller Williams joined with Zillow to manipulate this very data and effectively walk out of the room of clear cooperation.
Washington State has officially outlawed these pocket listings. That means every property needs to hit the open MLS so buyers aren't locked out of inventory they don't know even exists. It is a clear win for transparency and equity. It's also a direct challenge to the changing marketplace and back room dealing the mega brokerages have started to use.
Yet, as one of the largest shifts in listing policy hits the industry, the National Association of Realtors has once again been decidedly silent.
Where is the leadership? Where is the forward-facing guidance? Instead of steering the shup through potential change NAR is watching from the shoreline with their cowardice in full view. In a world demanding transparency and consumer-first models, silence isn't neutral, it's complicity. Once again proving to the watching industry that their day in the sun is long gone, and its time to join Old Yeller on the farm.
What do consumers want though? We were told in 2019 to stop pocket listings and make sure that all properties listed by a REALTOR were to be publicly available within 24 hours of being marketed to the public. The idea that exposing your homes availability for sale to the widest possible audience would provide the best possible outcome in getting the best possible offer isn't crazy. What is crazy though is to expect to keep your information limited to a select few intra-company agents and still get the same results definition of madness anyone?). The only difference now though is the likes of Compass Group, EXP now think that their sh*t doesn't stink and so they don't have to play by the industries rules anymore. Sad thing is, they are probably way too big and have way too much influence for the NAR to be able to do anything about.
Fact is this isn't just a Washington State story, it's a sign of what is to come. The future of real estate will be built on access, trust and openness, or not at all if the mega brokerages have their way. It is clear that the corporate brokerages care more for profit margins and investor dividends than what is right for the consumer and we all know NAR is not up to the challenge of leading a clear path fortune. So maybe, just maybe this is a problem that has to be legislated even if you have to do that one state at a time.