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Our real estate system in North America (U.S. and Canada) is unique compared to the rest of the world, and, in my opinion, it is the most efficient, transparent, liquid and accurate one on the planet. I say this not only as an independent broker-operator actively selling homes in North America, but also as a company with operations in 22 additional countries. The differences are stark — and North America’s system is, by far, superior.
Many people take for granted the comprehensive marketplace we enjoy, with all the data points we use daily to serve buyers and sellers. The MLS is so much more than just a database of listings, despite how some in the industry have recently downplayed it. MLSs create localized business rules and rules of engagement where competitors share information on an equal playing field, all for the benefit of the consumer.
These databases are the capital “T” truth of our market, where everyone follows the same standards — whether it’s defining a bedroom or bathroom or ensuring equal showing access. This structure protects consumers, allowing them to access the full market and ensuring fair play in what could otherwise be a chaotic system.
The true value of the MLS system
The true value of the MLS system is easy to overlook. It’s a marvel of efficiency where competitors voluntarily share information on equal footing. MLSs are data cooperatives, and by participating, agents give and take information equally. This kind of cooperation doesn’t exist in many other places. In most European countries, consumers and agents have to go to eight to 10 different portals just to piece together an incomplete view of available inventory.
Let me give you an example from my own experience. I recently sold my parents’ home in Belize after they relocated to be closer to their grandkids in Miami. The process took nearly four years and several different brokers.
Without a cooperative MLS system, we had to rely on potential buyers stumbling upon the right combination of keywords in Google to find the property on our broker’s WordPress site. Only then could the agent show the property. The sale finally happened, but it came with a 10 percent commission — far higher than the rates we see in North America, thanks to our efficient system.
The Clear Cooperation Policy (CCP) is central to this efficiency, and while it’s not perfect, it’s essential for maintaining a fair marketplace. I’m open to reasonable modifications, but I strongly believe in the need for a national framework.
Clear Cooperation prevents inventory hoarding and ‘pay-to-play’ access
If you want to participate in the marketplace and access its data, you must also contribute to it. Selectively adding listings only when it benefits you disrupts the system and harms consumers. The current system forces agents to compete based on service, value and price. Without CCP, large brokerages would hoard inventory and use it as a recruitment tool or, worse, create “pay-to-play” situations where consumers must work with specific agents just to access certain homes.
Let’s not forget the broader implications here. Removing the CCP would hurt smaller brokerages that don’t have the resources to keep listings to themselves. This could lead to market consolidation, where larger firms control the lion’s share of listings, reducing competition and consumer choice.
This kind of hoarding would also limit innovation, as small businesses would struggle to compete, and the consumer would ultimately pay the price through fewer options and higher costs.
Moreover, let’s talk about fair housing and equity. Weakening or eliminating the CCP would disproportionately harm buyers who are less connected — especially buyers from underserved communities. If pocket listings become the norm, only wealthier or more well-connected buyers will gain access to certain homes, further widening the gap in the housing market.
The MLS is one of the few systems that ensures equal access to all listings for all buyers, and dismantling it would be a huge step backward in terms of fairness.
Transparency reinforces trust in agents and brokers
Transparency is also key. Consumers trust the real estate system because they know that, under the current MLS system, they can see the full market. Without this transparency, buyers and sellers may begin to distrust agents and brokers, wondering if deals are being done behind closed doors or if they’re not seeing all available inventory. This loss of trust would damage the entire industry in the long run.
There are also significant legal and financial risks to consider. As James Dwiggins recently pointed out, eliminating CCP could lead to lawsuits from sellers who feel they were misled. Imagine the fallout when sellers realize they could have earned 5 percent to 17 percent more by listing their property on the MLS, but instead were pushed toward an off-market sale. These kinds of legal battles could cause catastrophic financial damage to the industry and erode the public’s trust in real estate professionals.
From a global perspective, the North American MLS system is unmatched in its effectiveness. Other countries are trying to implement similar systems precisely because they recognize the benefits of our transparency and fairness.
Let’s not undo decades of progress for short-term corporate gains. I’ve seen firsthand how real estate operates in other countries, and it’s clear that without our cooperative MLS structure, buyers and sellers are left with a fragmented, inefficient system that benefits only a few.
I spent 16 years actively selling real estate, sitting in front of thousands of sellers, and not once has a seller complained about having to enter their listing into the MLS. Their goals are clear: to sell their home for the most money, in the shortest possible time, with the least hassle. Period.
While there are always exceptions — law enforcement, privacy concerns, tenant-occupied properties, and new constructions to name a few — the rules already allow for these cases. To argue that sellers are being harmed by participating in the MLS framework is disingenuous and driven by greed, not consumer interest.
We have built a real estate system that benefits everyone — buyers, sellers and agents alike. The Clear Cooperation Policy is an essential part of that system, and while there is room for improvement, removing it would undermine the very principles that have made North American real estate the best in the world.
Leo Pareja is the CEO of eXp Realty. Connect with him on LinkedIn or Instagram.