RE/MAX takes a hard line on Clear Cooperation
While the debate over the controversial Clear Cooperation Policy (CCP) rages on, another big brokerage has weighed in.
On the firm’s third-quarter 2024 earnings call on Friday, RE/MAX CEO Erik Carlson said that the brokerage supports CCP because it “believes in prioritizing consumer interest over practices that benefit a few at the expense of many.”
“Agents and companies who promote listings to the widest possible audience are serving the best interests of buyers and sellers alike and honoring their fiduciary responsibilities,” Carlson said. “Buyers deserve equal access to available properties, and sellers deserve the broadest possible exposure for their homes. We stand for trust, transparency and professionalism.”
Carlson’s comment that ending the policy will “benefit a few at the expense of many” could be taken as a veiled shot at brokerages like Compass and The Agency, whose growth plans include making their platforms a hub for exclusive listings.
CCP is a rule imposed by the National Association of Realtors (NAR) that requires Realtors to list their properties on a NAR-affiliated multiple listing service (MLS) within a day of signing a listing agreement. It serves as a significant barrier to building an exclusive listings inventory.
Compass has been more than vocal in its opposition to CCP. On its Q3 2024 earnings call on Wednesday, Compass CEO Robert Reffkin framed the brokerage’s position as support for “seller’s choice,” stating that “homeowners should not be forced to do anything they don’t want to do.”
CCP is being reviewed by NAR as the Department of Justice (DOJ) under President Joe Biden’s watch has taken aim at real estate practices it deems anti-competitive.
Thus far, NAR has declined to make a firm decision on whether to keep CCP or dump it. NAR’s advisory board held a meeting last week on the topic that ended with no action as the trade group stated that further review was necessary.
But NAR’s reluctance to make any changes may simply be a stalling tactic. The presidential election will result in a change of administration regardless of whether Vice President Kamala Harris or former President Donald Trump wins. But a second Trump administration would likely shift priorities for the DOJ and allow NAR to keep the policy without the threat of DOJ intervention.
Positions on CCP from entities in real estate are largely dictated by self-interest. Listings are the life blood of MLSs, which have come out in favor of the policy. Last week, Denee Evans, CEO of the Council of Multiple Listing Services, sent an email to its members and NAR stating that concerns about the policy are “inherently invalid.”
Meanwhile, The Agency founder Mauricio Umansky has made no secret of his opposition to CCP, telling HousingWire in October that the policy is “anti-competitive and anti-freedom of choice, which is what our entire country is built on.” The Agency is also pursuing exclusive listings.
RE/MAX’s earnings call disclosed mixed results for the company. While it posted a profit of just shy of $1 million on $78.48 million in revenue, its agent count continues to stagnate. The company disclosed that it had 52,808 agents in the U.S. at the end of the third quarter, a 6.5% year-over-year decline.
After the earnings call, shares of RE/MAX fell sharply.