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For home sellers, publicly marketing a property on the local Multiple Listing Service (MLS) consistently leads to higher sale prices, while buyers gain a complete, fair view of the market. The National Association of Realtors' (NAR) Clear Cooperation Policy, which limits off-market "pocket listings," is fundamental to maintaining this fairness. Weakening this policy risks creating broker monopolies, reducing transparency, and ultimately costing both consumers and real estate agents.
Often referred to as the ruling on "pocket listings," the Clear Cooperation Policy is a NAR rule requiring listing brokers to submit a property to their MLS within one business day of publicly marketing it. A pocket listing is a property for sale that is not marketed on the public MLS, limiting its visibility. The policy was designed to ensure that most homes are marketed broadly, guaranteeing that sellers can reach the largest possible pool of buyers and that all buyers have equal access to available inventory. This creates a more efficient and equitable market.
If a single large brokerage were to systematically keep its most desirable listings off the MLS, it could create an inventory advantage. In a scenario where a significant percentage of homes in a desirable neighborhood are pocketed, buyers would be forced to work with that specific brokerage to see those properties. This control over inventory is a classic monopolistic strategy. As one 2023 industry report suggested, in a tight market with limited supply, the incentive for a broker to hoard listings to attract both buyers and agents becomes significantly stronger.
The primary benefit for sellers using the MLS is exposure. By marketing a property on the MLS, it is instantly syndicated to hundreds of consumer websites, maximizing the number of potential buyers who see it. This increased exposure typically leads to competitive offers, often driving the final sale price higher than what might be achieved through a private, off-market sale. Based on our experience assessment, homes listed on the MLS sell closer to or above their asking price compared to off-market transactions.
For buyers, a market with prevalent pocket listings is inherently unfair. Buyers, particularly those from underrepresented communities, may miss out on homes simply because they are not working with the specific brokerage controlling those listings. This undermines fair housing principles. For real estate agents, the dynamics shift negatively. If inventory is controlled by a few large brokers, agents may feel pressured to join those firms—even for lower commission splits—simply to access listings for their clients, stifling competition from smaller, independent brokerages.
Opponents of the Clear Cooperation Policy often cite seller privacy as a reason for pocket listings. However, modern MLS systems are designed with privacy controls. Listing agents can typically restrict public-facing marketing while still sharing the listing with other MLS members. Options often include delaying internet publication, hiding specific property details, or removing photos after the sale. This allows for privacy concerns to be addressed within a cooperative system, rather than through exclusionary off-market deals that fragment the market.
To ensure a fair and open market for everyone, supporting strong data cooperation policies is essential. Sellers benefit from maximum exposure, buyers benefit from equal access, and agents can compete on a level playing field. The MLS remains the most effective tool for achieving this balance.
