NAHREP Strongly Supports the Benefits of a Fair and Transparent Real Estate Market

By NAHREP

November 20, 2024

The National Association of Hispanic Real Estate Professionals (NAHREP) is a non-profit organization representing over 45,000 real estate professionals. Our mission is to increase the Hispanic homeownership rate by empowering real estate professionals who serve Hispanic homebuyers and sellers. NAHREP is a strong advocate for the National Association of REALTORS® Clear Cooperation Policy, which requires all properties for sale to be listed on the Multiple Listing Service (MLS) within one business day of being publicly marketed. This policy helps ensure all buyers have equal access to available properties, fostering transparency and promoting fair housing in the real estate market.

Fair housing practices, particularly transparency in property listings, are critical to dismantling systemic barriers that have historically disadvantaged Hispanics and other marginalized communities. According to NAHREP’s 2023 State of Hispanic Homeownership Report, Latinos continue to be a driving force in U.S. homeownership growth, with 450,000 new households formed in 2023 alone. This growth highlights the importance of providing these homebuyers with equal access to all available housing opportunities, as restricted access can perpetuate historical inequities.

Ensuring consumers and agents have fair and transparent access to real estate information, including listings, is essential in addressing housing discrimination. Private listing networks (PLNs), which limit access to a select group of buyers, risk creating a two-tiered system that excludes underserved buyers, including Hispanics who have faced discrimination in the past. NAHREP believes such exclusionary practices not only hinder homeownership growth for Hispanic buyers but also contradict the principles of fair housing.

Agents also need fair and transparent access to real estate listings to adequately serve homebuyers, including Hispanic homebuyers. A large portion of NAHREP’s membership—more than 68%—consists of small business owners, including real estate agents and brokers who rely on equal access to property listings to serve their clients. NAHREP also tracks the growth of Latino-owned businesses, which have experienced significant growth, with nearly 400,000 employer firms operating in the U.S. as of 2022. NAHREP is particularly concerned that eliminating the Clear Cooperation Policy would favor large brokerages, who would have incentives to hoard listings to force consumers into dual agency relationships, where the broker who listed the property for sale forces a buyer to work with them and denies them the ability to work with an independent buyer’s agent who only works for the buyer. Large brokers will also use their control over listing inventory not available to other agents in the market to boost recruiting efforts to the disadvantage of smaller brokerages. Fair and transparent access to real estate information supports transparency and provides small businesses equitable opportunities to compete for listings, which is vital for their success.

Fostering a fair and transparent market strengthens the entrepreneurial ecosystem that NAHREP champions. It enables small business owners to access opportunities that promote fair competition and support their long-term growth. This aligns with NAHREP’s broader goals, including wealth generation through small business ownership, a key focus of the Hispanic Wealth Project™.

While Clear Cooperation provides clear benefits in promoting fairness and transparency in the real estate market, it has faced some opposition from those who argue it restricts seller choice, compromises privacy, or disadvantages certain market players. NAHREP acknowledges these concerns but believes that the overall benefits of fair and transparent access far outweigh the perceived drawbacks. Below, we address the most common arguments and offer NAHREP’s perspective on why maintaining fair and transparent access is essential for a transparent and equitable housing market.

Some have raised concerns about CCP’s impact on seller choice, privacy, data security, and market dynamics. Critics argue that requiring all properties to be listed on the MLS limits homeowners’ ability to control how their property is marketed and reduces privacy. However, NAHREP believes that while seller choice and privacy are important, transparency and equal access to housing opportunities are essential for promoting fair housing and a healthy real estate market. The MLS already offers options for sellers to limit the public display of their property details while still ensuring that agents and potential buyers can access the information needed to make informed decisions, thus balancing privacy concerns with the goal of fairness.

Another concern relates to the potential misuse of homeowner data, with some suggesting that MLSs do not adequately disclose the risks associated with broad exposure. NAHREP acknowledges the importance of data privacy and supports efforts to improve transparency in how homeowner data is used. However, eliminating fair and transparent access to real estate information is not the solution. Instead, NAHREP advocates for strengthening data privacy protections and ensuring that sellers are well-informed about how their data is handled while maintaining fair and transparent access to property information.

There are also arguments in favor of private listing networks (PLNs) as an alternative to the MLS, citing that PLNs provide more control to sellers and agents. NAHREP contends that PLNs undermine the principles of transparency and fair housing, as they often create a tiered system where only a select group of buyers have access to certain properties. This practice can perpetuate discrimination and limit opportunities for homebuyers, including Black and Hispanic buyers who have historically faced housing challenges. By contrast, fair and transparent access to real estate information ensures that all properties are accessible to all potential buyers, promoting a more inclusive and fair housing market.

Lastly, some claim that fair and transparent access disproportionately benefits large brokerages, and disadvantages smaller firms. NAHREP believes the policy actually levels the playing field by preventing large brokerages from hoarding listings and using exclusive inventory to recruit agents away from smaller companies. By requiring all properties to be listed on the MLS, fair and transparent access policies support fair competition, protect the interests of smaller brokerages, and foster a more competitive and transparent market environment.

NAHREP firmly believes fair and transparent access to real estate information is essential for promoting transparency, fair housing, and a competitive real estate market that benefits all participants. We urge the real estate industry to maintain and strengthen the Clear Cooperation Policy, ensuring that all buyers have equal access to housing opportunities and that the real estate market operates with the utmost integrity and fairness.

About NAHREP:

The National Association of Hispanic Real Estate Professionals® (NAHREP®), a nonprofit 501(c)(6) trade association, is dedicated to advancing sustainable homeownership for the Hispanic community in America. NAHREP has a network of over 40,000 real estate professionals and 100 local chapters nationwide. It hosts several national events per year and publishes multiple industry cornerstone reports and multimedia content annually. Join us in advocating for policies that grow sustainable Latino homeownership; read our 2024 policy priorities here.