Lawsuit Not Necessary
I will admit that the following story has fired me up. I think that our litigious society blows things out of proportion, and lawsuits are automatically filed just because somebody doesn’t like something, particularly change. However, let me also state that I do not know all of the facts, and I have made a statement that the plaintiffs in this headline are just mad about change, which may or may not be accurate. There, I disclosed my one-sided viewpoint of the lawsuit that I know nothing about (other than what was published in the newspaper article). Keep reading if you wish.
I had a conversation with an industry leader, who shared with me this article from the Washington Post about a lawsuit filed against our industry mothership, the National Association of REALTORS® as an objection to the recent MLS Clear Cooperation Policy implemented recently. Keep in mind; this was voted on by the board of directors and vetted through a process. So my first question is, “why would you sue?” especially when you had the opportunity to speak up about this. (And perhaps the plaintiffs did speak up about it, but I don’t recall that much dissension about this particular vote to change policy.)
So let’s discuss policies if you don’t like the policy (whether at the local, state, or national levels) that has been voted on by your peers and implemented, then get involved with the association that is working for you, not against you, and run it through the process. The policy had to have some sort of grit to it, otherwise, why would the majority be in favor of it? If there are bad pieces to the policy that affect the membership as a whole, then your peers may agree with you. Almost anything can be changed and run through the process at the Board of Directors level. Slow your roll before you take it to a judge and waste everyone’s time and dues dollars (yours too) on something that can be changed by the group if it genuinely is a hindrance to the way business is done in our industry.
My second question is, “why don’t some our members understand how the MLS actually works?” The value in the MLS goes far beyond just finding the hot new listings or running comps. This database should be a central repository of all the real estate data, and it needs to be used for good. The “good” needs to entail having reliable and specific data to show that the economy is thriving. Accurate data shows a healthy market that allows for greater interest in a city or area. When outsiders read the stats that show a terrible real estate market in your area, why would they want to move there? When you withhold listings because you sold them in-house or just among yourself, then that statistic and data are not included in the reporting, affecting the economic viability of a community.
I get it. Brokers want to be creative in their advertising. They want to be the first one to offer it and hope for that private, double-bubble sale. Or they want to drum up excitement about a property before it is listed and ready for showings, in an attempt to get a bidding war going once it does go active on the market. Clear cooperation hampers that a bit, but yet it helps the consumer. In one example, it helps the seller get as many offers as possible, bringing the highest value for their home when it is exposed to multiple people and not just a select few. What if that REALTOR® from another company was going to bring a higher offer to your seller, bringing them more money for their home? Wouldn’t you want that for your client? If not, then you have completely lost sight of what being a good REALTOR® is.
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I don’t have a dog in this fight. I am no longer a practicing broker (ancient history), and I no longer run an MLS, as that was a lifetime ago when I was the MLS Executive/General Manager of a 3,500+ member regional MLS. But I do care greatly that the members understand their value. My dog is in leading the state association, influencing them in sharing their value, in addition to several other purposes that align with our mission.
(OMG, I just realized how bad that dog-fighting cliche is, stop me!!)
This is not about the specific lawsuit linked in this story.
I am sure that the plaintiffs here are probably mad about the change and feel short-changed by NAR not having the ability to do business in creative ways or not having the opportunity to sell the listing internally, netting a higher commission. However, imagine how your clients would feel if they find out that they were short-changed because you had only shared the listing with your office. Yet, another buyer, working with a different MLS Participant/Agent outside of your company had a better offer for your sellers. Still, you short-changed (literally) out of that by not sharing the listing clearly with all REALTOR® members. If that situation happens, it does not cast the best light on the REALTOR® profession.
Don’t make it appropriate for the REALTORS®, make it fair for the consumer because that’s who we serve. And the data. Accurate data is sexy! Place your focus on factual data in a robust market and do not file frivolous lawsuits distracting our attention, all while Zillow takes over our industry.
I am not looking to pick a fight.
Sure, there are many angles to this story, and I am willing to hear them all out because I am finding this topic fascinating. I have already admitted that my viewpoint is one-sided, and I am not entirely aware of all of the facts surrounding this specific lawsuit that was filed. I am willing to look at all the angles; this is just one of them.
