Clear Cooperation - Why is it so IMPORTANT???

The Importance of the NAR Clear Cooperation Policy for Realtors

The real estate industry is constantly evolving, and so are the rules and regulations that guide professionals in the field. One policy that has gained significant attention is the Clear Cooperation Policy introduced by the National Association of Realtors (NAR). While some may debate its merits, understanding the purpose and impact of this policy is essential for Realtors, especially in markets like Cleveland.

Tony Geraci, Broker/Owner of Century 21 HomeStar, shares his insights into why the Clear Cooperation Policy is vital for the future of real estate and how it benefits both agents and consumers.

What is the Clear Cooperation Policy?

The Clear Cooperation Policy, implemented by the NAR, mandates that Realtors must submit a listing to the Multiple Listing Service (MLS) within one business day of publicly marketing the property. This includes any form of public advertising, such as yard signs, social media posts, or other marketing efforts.

The goal is clear: ensure a transparent and open market where all qualified buyers have equal access to listings. In essence, this policy promotes fairness by preventing “pocket listings” — when agents privately market a property without exposing it to the broader real estate market. It ensures that listings are not just kept within a small circle but are shared widely, benefiting both sellers and buyers.

Why the Clear Cooperation Policy Matters

From a historical perspective, real estate practices have come a long way. In the past, especially in the Cleveland area, certain neighborhoods didn’t allow yard signs as a remnant of discriminatory practices like blockbusting. Blockbusting occurred when Realtors or others would incite homeowners to sell their properties by suggesting that certain racial or ethnic groups were moving into the neighborhood. This created a sense of urgency and fear, leading to rushed sales, often at lower prices.

Similarly, before the widespread use of the internet and MLS systems, Realtors controlled property listings, sometimes only showing properties to handpicked buyers. This exclusivity limited the number of people who could see a property and, in some cases, perpetuated discrimination based on race, religion, or socioeconomic status.

Fast forward to today, the Clear Cooperation Policy ensures that we move further away from these outdated practices. By requiring listings to be shared on the MLS, the policy fosters an open and competitive market, giving every buyer, regardless of their background, the opportunity to view and purchase properties. It also ensures sellers get the highest possible price for their home by exposing it to a wider audience.

Common Misconceptions About the Clear Cooperation Policy

Some agents argue that sellers should have the right to choose how they want their properties marketed, including keeping the sale private or limiting exposure to select groups. However, this can easily veer into discriminatory territory, even if that isn’t the seller’s intent.

Geraci emphasizes that while sellers may have preferences, it’s the Realtor’s responsibility to adhere to ethical standards and legal guidelines. The argument that “my seller doesn’t want it on the MLS” often stems from ignorance of how the market operates today. With tools like the internet, even high-end luxury properties benefit from wide exposure. In fact, many multimillion-dollar homes are now marketed online to attract international buyers, something that was rarely done in the past.

Sellers may also think they’ll achieve a better result by privately marketing their home, but the reality is that limiting the pool of buyers almost always results in a lower sale price. In contrast, when properties are marketed broadly through the MLS, more buyers have the opportunity to view them, often resulting in competitive offers that drive up the price.

The Risks of Removing the Clear Cooperation Policy

Some industry voices have suggested doing away with the Clear Cooperation Policy, arguing that sellers should have more freedom to choose how their homes are marketed. However, this could lead to a fragmented real estate market where properties are sold only to a select few, reinforcing some of the discriminatory practices the policy seeks to eliminate.

For Realtors, this would also create a situation where half of the available listings might not even be on the MLS, making it harder to serve clients effectively. Buyers could miss out on properties simply because they aren’t aware they’re for sale. This lack of transparency is bad for both the consumer and the industry as a whole.

What Cleveland Realtors Can Do

As Realtors, it’s crucial to stay informed about policies like Clear Cooperation, especially as they evolve. Geraci encourages Realtors in Cleveland and across Ohio to support policies that ensure transparency and fairness in the market.

If you’re working with sellers who insist on keeping their property off the MLS, take the time to educate them about the benefits of wide exposure. Explain that marketing to the broadest possible audience is likely to yield the best results in terms of price and speed of sale.

Additionally, if you see efforts to overturn or weaken the Clear Cooperation Policy, get involved. Support your local and national Realtor associations in maintaining standards that benefit both the real estate industry and consumers.

Final Thoughts

The Clear Cooperation Policy is more than just a rule—it’s a safeguard for fairness and transparency in real estate. By promoting open access to property listings, it ensures that buyers and sellers are treated equitably and that the market remains competitive. For Realtors in Ohio and beyond, understanding and supporting this policy is crucial for the future of the industry.

As Tony Geraci underscores, real estate professionals must always strive to create a marketplace that’s open, fair, and transparent. By doing so, we not only protect our industry but also provide the best possible service to our clients.

For more insights on real estate practices and policies, stay connected with Mike Ferrante, Team Leader of the 21 Mike Team at Century 21 HomeStar, and continue to follow the evolving landscape of real estate in Ohio.

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