The Off-Market Listing Debate

Hey everyone, Mike Meza here! Today, I’m diving into a hot topic in the real estate world—the Clear Cooperation Policy (CCP), off-market listings, and the ongoing debate among major brokerages. Whether you’re a buyer, seller, or just curious, this is something you need to know.

What’s Happening with Off-Market Listings?

Off-market listings—also called “pocket listings”—are homes marketed privately without being added to the MLS (Multiple Listing Service). These properties are often shared within a brokerage network or directly with select buyers.

In 2019, the National Association of Realtors (NAR) introduced the Clear Cooperation Policy (CCP). This rule requires agents to list properties on the MLS within one business day of marketing them to the public. The idea was to ensure transparency, but now, some major players, like Compass, want this rule repealed.

The Debate: Transparency vs. Exclusivity

1. Transparency for Buyers
The MLS is designed to ensure every buyer has access to every home. Without the CCP, buyers working with agents outside certain brokerages may miss out on listings altogether. This could feel exclusionary, especially for buyers navigating today’s competitive market.

2. Exclusivity and Control for Sellers
Compass argues that MLS exposure can create negative insights for sellers, like:

• Price drops
• Days on market
• Public price history

For sellers, particularly in luxury markets (like Monterey Peninsula), these factors can make their property appear stale, leading to lower offers. Compass believes sellers should have more control over how and when their homes are marketed.

Why This Matters Locally

In Monterey County, where inventory is already tight and prices are high, repealing the CCP could change the game:

• For Buyers: Without the right agent, you could miss out on hidden opportunities.
• For Sellers: Keeping a home off-market might make sense in a slower market or for privacy concerns (think celebrities, public figures, etc.).

Markets aren’t all the same. In 2021, when interest rates were at historic lows, it made sense to go public with listings. But in 2024 and beyond, with fewer buyers due to higher interest rates, off-market listings might offer more control and better outcomes for sellers.