Analysis
Open Real Estate formed by 4 Real Estate Giants
In this episode
Four of the largest real estate companies in the country announced Open Real Estate, a shared listing platform that any brokerage can join for free.
We discuss some potential benefits and some fallout that could have massive affects for the real estate industry moving forward.
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Show notes
The founders are AGNT Inc. (the parent of eXp Realty), Keller Williams, Real REMAX Group and HomeServices of America. It’s their answer to Compass, the largest brokerage in the country, which markets some homes privately inside its own network before they ever reach the MLS.
Our take: more ways to market a home is good for buyers and sellers. But for most houses, getting in front of every possible buyer right away still wins. Private testing makes the most sense for unique properties, sellers who need privacy, and sellers whose price expectations are ahead of the market..
The part worth repeating
This is the real question. Is a seller better off quietly testing a price, or putting the home in front of every possible buyer on day one? For roughly 98% of homes, we think it’s the second one. More buyers means more competition, and more competition is what gets a typical house its best price.
Common questions
What is the potential fallout?
Is this the beginning of the end for NAR and the MLS? Here’s where the snowball could become an avalanche. On one side you have the largest brokerage in the country. On the other, the next four largest, open to everyone else. Strip it down and the MLS is a place to find homes for sale, and Zillow mostly republishes what’s on it. If a network that big starts holding most listings, the MLS starts to look like a duplicate, and so do the MLS and NAR dues that come with it.
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