Doing the Right Thing
Submission of listings to the MLS promotes fair housing principles and equal access to housing.
In the organized real estate space, 2024 will mark the settlement of lawsuits totaling hundreds of millions of dollars. I cannot imagine any real estate company or agent wanting to repeat that experience. However, suppose brokers actively encourage sellers to accept more limited listing exposure for their benefit as opposed to the sellers’ benefit—in the words of Yogi Berra, it could be déjà vu all over again.
I believe it’s tough to argue against more visibility of a listing benefiting home sellers and prospective buyers alike. I also think that submission of listings to the MLS promotes fair housing principles and equal access to housing, where selected or limited marketing of listings can lead to potential discrimination, even if unintentional.
In this instance, I don’t think it is necessary to focus solely on mandatory rules; instead, focus on doing what is right for the consumer. That means providing the consumer with all available options for achieving their goals and following all lawful instructions to help them achieve them.
Again, if brokers steer them in directions that benefit the brokers’ interests above the consumer’s interest, we have a problem, and in my opinion, a big problem.
The other aspect of this conversation that we cannot ignore is the potential impact on data integrity. Complete, current, accurate, and timely real property data is the foundation of the MLS and facilitates a transparent marketplace that benefits brokers and consumers alike. If you don’t have complete, accurate, and timely data, think of the impact that would have on CMAs and appraisals. I think the ripple effect will go much further.
Suppose brokers selectively withhold listings from the MLS for a period of time. In that case, prospective purchasers will not have access to those properties unless they work directly with the listing office, forgoing any existing relationship they may have with their buyer’s agent. Again, suggesting that a prospective purchaser forgo the representation of their choice to access the listed property is problematic.
We live and work in a time where the inclination is to tear down systems and institutions that have served us well for years if not decades. As I’ve said numerous times, I’m not a fan of the status quo, as I think change is inevitable and necessary. However, I come from a perspective of how we can improve the systems we have in place instead of weakening the effectiveness of those systems. The real estate industry must realize the consequences of such actions, and we must always be willing to do what’s right, not what is self-serving.
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