Why some homes for sale are hidden from buyers
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Illustration: Brendan Lynch/Axios
Real estate commissions aren't the only industry practice under fire.
Why it matters: Critics have pushed to end an optional but widely followed National Association of Realtors policy, arguing it hides certain listings from online home shoppers.
- The U.S. Department of Justice has also scrutinized the practice, referred to as the "no-commingling" rule.
How it works: Most local databases known as multiple listing services have adopted the no-commingling rule if they're affiliated with the NAR.
- The policy requires MLS listings to be displayed separately from non-MLS listings, such as houses sold directly by homeowners or builders.
That means users on websites like Zillow often need to toggle between tabs or adjust filters to see all listings.
- The upshot, some opponents say, is unless you hire a real estate agent, getting your home noticed online is nearly impossible.
What we're hearing: Realtors "offer important services," but sellers should have the option to list homes that aren't "isolated and difficult for buyers to find," says Stephen Brobeck, senior fellow at the Consumer Federation of America.
Some real estate professionals have defended the policy.
- "If you are a content provider," — i.e. a real estate brokerage that supplies listings to an MLS — "you want to protect the content that you provide and you want to use that content to your advantage," Saul Klein, CEO of
San Diego MLS, told HousingWire.
Between the lines: Home prices continue to climb.
- A mid-Atlantic MLS found that between 2019 and early last year, homes listed in its database sold for 17.5% more than similar properties sold off MLS.
The latest: The Justice Department is looking into the NAR's no-commingling rule after previously tangling with the trade group over several policies in past years, HousingWire reports.
- Federal prosecutors have said even if the adoption of the rule is voluntary, it can still violate antitrust laws.
The other side: NAR spokesperson Mantill Williams says antitrust claims concerning the no-commingling rule are without merit, noting a judge has dismissed them.
By the numbers: 90% of recent home sellers say they received help from a real estate agent, while 6% sold their homes themselves, according to NAR research.
Catch up quick: In March, the NAR agreed to a deal that changes how agent commissions are paid after a jury found the group liable for keeping fees artificially high.
That didn't end disputes over other industry policies.
- One ongoing debate about a NAR rule known as the clear cooperation policy could shake up how listings are marketed, the Wall Street Journal reports.
The bottom line: After a Colorado MLS dropped the no-commingling rule in 2022, Zillow and Redfin encouraged others to follow suit to help potential buyers.
- Some multiple listing services have abandoned the rule since then. "Our hope is that all" services will do so, Brobeck tells Axios.
