Brown Harris Stevens CEO Bess Freedman is not a fan of private listing networks, and on Wednesday, she made the case that they create problems for real estate professionals.
“I think if you are working for a seller and you want to get them the highest price [for their listing], you want to expose it to the entire marketplace,” Freedman said.
The comments came during Freedman’s time on stage for Inman Connect New York — an event that has been dominated over the past two days by debates over private listing networks. Such networks have proliferated over the past couple of years, prompting intense debates about data, privacy, consumer choice and real estate rules.
During her Connect session, Freedman specifically argued that private listing networks work against transparency and, as a result, are “damaging” to the way people perceive the real estate profession.
“I think we have to be the people that share information honestly; otherwise, we’re going to lose this battle,” Freedman said, grouping private listings with reality TV and major lawsuits as things that undermine trust.
Freedman went on to acknowledge that proponents of private listing networks have argued to sellers that “you’re missing out if you’re not in this network.” But she offered a rebuttal focused on buyers and housing regulations.
“But what about buyers’ choice?” Freedman said. “Don’t buyers need to see what’s available in the marketplace? And I think you have issues coming down the line with fair housing when you’re keeping people out of the market. So I would be very careful.”
Moderator Clelia Warburg Peters, left, and Bess Freedman at Inman Connect New York on Wednesday. Credit: AJ Canaria Creative Services
She also said that Brown Harris Stevens could benefit from building its own private network because the company has a large number of high-end listings. But Freedman indicated her company won’t do that and expressed dismay that other firms have jumped on the private listing bandwagon.
“We want to continue to do things the right way, even if you’re not making as much money,” she continued, adding a moment later that “the truth is doing the right thing. And when you do the right thing, the right thing happens.”
Later in the session, Freedman said she was “shocked” by the merger between Anywhere and Compass. Still, she argued that, despite instances of major industry consolidation, the present is “a great time to be an independent firm and be able to make your decisions based on what the agents need.”
“If you go to, say, the Four Seasons, you’re expecting certain things because you know they deliver,” she said. “Which is why you keep going back. It’s the same with Brown Harris Stevens. We’re known for luxury, but it’s not about price point. It’s about service. Whether it’s a studio or a rental or it’s a $30 million apartment or townhouse, we have to deliver that same service to everyone.”
Session moderator Clelia Warburg Peters also asked Freedman for the definition of a “good agent.” And Freedman responded that a good agent is someone who “puts their clients’ needs first.”
“They’re prepared, they’re fluent with the marketplace, they know what they’re showing them,” Freedman said. “They get along with people. They return phone calls. They’re on time. It’s that basic sort of courtesy and civility towards each other, because we need to have standards.”
