The majority of real estate professionals are in favor of clear collaboration, according to Intel Index

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Compass CEO Robert Reffkin is the latest high-profile real estate figure trying to convince the industry to chart a path forward without Clear Cooperation, the rule that has helped put the industry’s largest trade group in the Justice Department’s crosshairs.

But the rest of the industry isn’t exactly behind him.

By means of a margin of almost 3 to 1Agents and brokerage leaders responding to the November Intel Index survey showed support for the National Association of Realtors’ policies, even as many withheld endorsements from the beleaguered trade association itself.

For the most part, real estate professionals told Intel they still see the appeal of policies that result in more listings reaching the MLS.

Yet Reffkin and others like him are tapping into very real frustrations about how the policy can tie the hands of some customers — which many agents, including some who support the policy, recognize as a real disadvantage.

And agents of one popular form of brokerage are particularly receptive to this criticism, Intel found.

Read the full overview in this week’s report.

Controversial, but popular

Of the 715 real estate professionals – including agents, brokers, executives and investors – who responded to Intel’s November survey, a significant majority supported the policy.

• 65 percent of all real estate agents and broker respondents said clear collaboration is good for the industry, compared to most respondents. 22 percent who said it’s bad for the industry and 13 percent who had no opinion.

The real estate industry also largely believes that this policy – ​​which requires all listings to be posted to the MLS within one business day of going to market – also makes clients better off.

• 63 percent of all respondents said the policy was good for customers, vs. 24 percent who said it’s bad for customers and 13 percent who had no opinion.

Most real estate professionals consistently believed that the policy would either benefit the industry and consumers or harm both.

But some were divided on this question.

• 7 percent of respondents believe that the policy is good for the sector, but bad for consumers.
• A mere 4 percent said the policy is bad for the industry but benefits consumers.

Despite this broad support, Intel’s survey found that many proponents of Clear Cooperation were at least partially conflicted, acknowledging that they found some of the arguments against it persuasive.

Cracks in the foundation?

Agents and broker leaders had broadly similar perspectives on the policy.

But Intel found that agent respondents, who work more closely with customers, are more sensitive to the downsides of Clear Cooperation – especially for consumers.

• 27 percent of agents said Clear Cooperation is bad for customers, compared to 19 percent of broker leaders who said the same thing.
• A relatively small majority of agents 57 percent – said the policy was good for customers, compared to 76 percent of broker leaders.

And Intel found that agents who opposed the policy were more likely to work with brokers like Reffkin’s: large, publicly traded real estate companies that don’t offer franchises as part of their business model.

Breakdown: Agents who say CCP is good for customers

• 44 percent – franchise mediation
• 14 percent – listed, non-franchised
• 42 percent – private indie

Breakdown: Agents who say CCP is bad for customers

• 27 percent – franchise mediation
• 36 percent – listed, non-franchised
• 37 percent – private indie

Whether publicly traded, independent brokers adopted Reffkin’s example or were simply more likely to prefer that approach to the brokerage is not clear from these survey results alone.

But what is clear is that there is a division emerging over Clear Cooperation between the larger traditional franchises and the larger companies that are eschewing the franchise approach.

Why most agents support Clear Cooperation – and some don’t

Agents and broker leaders also told Intel which arguments regarding Clear Cooperation – both for and against the policy – ​​were most compelling to them.

In the “for” category, agents were generally influenced by the positive impacts of having information available about more listings in their MLS.

Arguments in favor of the CCP that agents and brokerage leaders generally found compelling:

• The policy helps more listings reach the MLS — 60 percent agreed
• It results in better data about my local market – 59 percent
• It enables more comprehensive public data to inform customer decisions – 56 percent
• It promotes transparency around the home transaction in a way that benefits the sector – 55 percent
• It promotes transparency around the home transaction in a way that benefits consumers: 51 percent

These arguments were more persuasive to real estate professionals than others, more abstract.

Survey respondents were generally unmoved by some advocates’ argument that the policy helps prevent discrimination and fair housing violations, for example.

And while about half of agents agreed that promoting transparency and enabling more comprehensive data is good for consumers, they reached less consensus on the issue than broker leaders.

Notably, most brokers rejected the idea – somewhat more popular among broker-owners and executives – that pocket listings are not an effective tactic for clients in most cases.

• Only 33 percent of agents surveyed in November agreed that pocket listings are generally not an effective tactic, compared to 50 percent of broker leaders.
• As much as 38 percent of brokers said they agreed that one drawback to Clear Cooperation is that its policy significantly limits the number of pocket listings, even when that strategy might be in the client’s best interest. Only 33 percent of broker leaders shared that sentiment.

While the Clear Cooperation Policy continues to enjoy broad support, the Intel Index results showed that many arguments against the rule resonated with real estate professionals as valid criticisms.

Unsurprisingly, agents were particularly sensitive to the idea that portals with large listings benefited from the policy even more than the brokerage sector.

Arguments against the CCP that agents and broker leaders were most receptive to:

• The policy has more benefits for offering portals like Zillow than for brokers and agents: 42 percent agreed
• It is difficult to enforce fairly and consistently – 38 percent
• It significantly limits the number of pocket listings, even if the strategy could be in the client’s best interest – 36 percent
• It has attracted unwanted attention from the Department of Justice – 36 percent
• It requires clients to have their home ready for full market exposure before gauging buyer interest – 33 percent
• It benefits the MLS more than it helps brokers and agents – 30 percent

Methodological notes: This month’s Inman Intel Index questionnaire was conducted from November 18 to December. October 4, 2024, and had received 751 responses. The entire Inman reader community was invited to participate, and a rotating, random selection of community members were asked to participate by email.. Users responded to a series of questions related to their self-described corner of the real estate industry – including real estate agents, brokerage leaders, lenders and proptech entrepreneurs. The results reflect the views of the involved Inman community, which do not always reflect those of the wider real estate industry. This questionnaire is carried out monthly.

Email Daniel Houston