Our industry’s protracted debate over private listings has led us far downstream of first principles of transparency and fairness.
Much of the conversation has centered on what it means to be pro-broker, or “broker-centric.” But an MLS is not designed to serve the interests of any single brokerage. By definition, the MLS serves the broader broker community by maintaining something everyone needs: clear visibility into the market in which they operate.
We also have spent much of the past two years focused on one side of a two-sided marketplace: sellers. Seller choice matters. And buyers matter, too. Two-thirds of sellers are also buyers, according to Zillow research, and it’s well-known that most agents work with both sellers and buyers.
Any meaningful discussion about the future of listing practices must consider the needs of both sides.
This is particularly important because “seller choice” and “market transparency” do not have to be mutually exclusive. Many MLSs already offer options for sellers who need or prefer a different marketing approach, including office exclusives, coming-soon status and options that limit public display.
Perhaps, then, the more important question is not whether sellers should have choices — they should — but rather, how can we ensure meaningful choice and maintain the transparent marketplace sellers, buyers and real estate professionals rely on.
The full picture
I became CEO of Stellar MLS, one of the largest MLSs in the United States, on March 1 of this year. Stellar exists, and has always existed, to keep the market open, maintain reliable and trustworthy data, and make sure all of our customers — and the clients they serve — can trust what is in front of them.
Our view did not materialize in response to a headline. We held the same position before this became a national debate, and we will hold it after.
Every brokerage is going to compete and market the way it thinks best. We respect and account for that. Stellar has always had carve-outs where genuine privacy is needed and offers a coming-soon status and options for no public display.
These are real choices that can co-exist with something every broker relies on: a complete and current record of what is for sale and what properties actually sold for.
As more homes are marketed privately, that record becomes less complete. Appraisers can have fewer comparable sales available to them. Buyers have less certainty that they are seeing the complete picture of available properties. Sellers risk reaching fewer prospective buyers and reducing the competition for their homes.
The overarching concern is bigger than the outcome of any single transaction. As the shared record of information becomes less complete, the marketplace becomes less transparent and the critical data less reliable.
What will not change
Finding the balance of structure and flexibility that serves a diverse constituency of brokers while protecting an open marketplace is not easy. But it is necessary.
How people search will change. How homes are marketed will change. Technology will change. Brokerage models and strategies will evolve. What will not change is our commitment to a trusted, independent and comprehensive record of what is real.
I recognize that, as an MLS CEO, I have a vested interest in this conversation, and that readers may reasonably factor that into how they view my perspective. My job is to run an MLS.
But the job of an MLS is bigger than preserving an institution. It is to sustain the foundation of information that real estate professionals rely upon to do the deeply important work they do. And that, ultimately, helps guide buyers and sellers through one of the most consequential transactions of their lives.
I believe that is worth preserving.
Shayne Fairley is CEO at Stellar MLS. Get connected on LinkedIn.
