The End of the Rules-Based Order, Real Estate Edition

CRMLS and Zillow point the way to how things will be here on out

Death of King Gustav II Adolf of Sweden at the Battle of Lützen, by Carl Wahlbom

Recently, CRMLS announced that it will not implement NAR’s new Multiple Listing Options for Sellers:

Last month, the National Association of REALTORS (NAR) adopted a new MLS policy called Multiple Listing Options for Sellers. The primary aim of this policy is to allow sellers that are publicly marketing their properties to delay when they are available through Internet Data Exchange (IDX) and syndication for a specific period of time. NAR is allowing MLSs to implement this policy at their discretion by September 30. For more information on NAR’s announcement, click here.

After careful review and consideration, CRMLS will NOT be adopting this new policy and will instead use options already available to users to accommodate the aims of NAR’s request. [Emphasis in original]

This comes on the heels of Zillow, the largest and most dominant portal in the industry, announcing that it was… erm… doing stuff. At first, it appeared that Zillow was banning listings that engaged in public marketing to some, but not all, buyers. Then it appeared that Zillow wasn’t doing that, but was doing something.

A LinkedIn post from Errol Samuelson, Zillow’s Chief Industry Development Officer, appeared to “clarify” what it was that Zillow was doing.

And if you have read the guest post from Ed Zorn, General Counsel of CRMLS the largest MLS in the country, you learned that at least one major executive (keep in mind that open letter was Ed’s personal opinion, and not reflective of the views of CRMLS or of its CEO, Art Carter) is in favor of the new Zillow policy because it would “make a difference” in his words.

I don’t know that I’m interested in dissecting any of these. But what I can’t help notice is that these three taken together is revealing something important.

The real estate industry has moved away from a rules-based order. Geopolitics also seems to be moving away from the rules-based international order and back to the old “Great Power Politics” of the 19th century… so why not real estate, right?

I happen to like and respect every single person and organization involved here: Ed Zorn, Errol Samuelson, CRMLS, and Zillow. But I can’t help but think that they are… well… if not making a mistake, then at least taking a hugely important step without perhaps thinking through what they’re doing.

They want to win a fight against Compass et. al. I get that. But to take these steps to win that fight might be something they all come to regret.

Let me explain.