How and when listing data is shared with the public has become a defining debate in the real estate industry.
The emergence of brokerage marketing tactics that withhold or postpone properties from full exposure on multiple listing services—such as office exclusive listings (“off-MLS listings,” “private listings,” “whisper listings” or “quiet listings”), Coming Soon statuses and delayed marketing—has driven conversation about the future of multiple listing services. And with that conversation has come a renewed interest in how MLSs make policy decisions and the National Association of REALTORS®’ role in MLS policymaking. (Note not all MLSs are affiliated with REALTOR® associations, and therefore they are not subject to NAR’s MLS policies.)
So how is the REALTOR® organization involved?
Purpose and Proliferation of MLS
To answer this question, it’s important to first understand the history of the MLS. Since as far back as 1885, real estate agents saw the public value of a single shared marketplace of available properties. At the time unethical amateurs were prevalent and prominent in news headlines, which made professionals crave a verifiable source of truth.
Here’s how Jeffrey Hornstein put it in his book “A Nation of Realtors®”:
“Perhaps the greatest business innovation wrought by local boards in the formative stages of organized real estate was the development and spread of the multiple-listing system. The architects of MLS intended to address both the issue of trust and the related problem of incomplete information in a highly fragmented market. ... Thus, a broker member had at his disposal the listings of every other member, assuring owners of widespread exposure of their property and buyers of comprehensive information on market prices and available properties.”
The idea ignited like a match. By May 1922 NAR’s Multiple Listing Committee, which had been established just seven months prior, reported a total of 50 local boards operating MLSs with new ones popping up “at the rate of two boards per week,” an NAR publication from the time said.
What is NAR’s Role in MLS Policy?
As their popularity grew (with 205 board MLSs by December 1924), NAR began issuing guidelines and crafting model regulations.
NAR’s MLS handbook (currently in its 36th edition) was first published in 1965. It’s intended to serve as a foundation to guide member associations in the operation of MLSs consistent with the policies established by the Board of Directors.
The handbook includes policies and guidance on topics like data, marketing, enforcement of rules and appeals, and classifies each policy as informational, optional, recommended or mandatory. The association also routinely publishes resources to help clarify its policies.
At 188 pages long, the framework is wordy and complex, but the intent is simple: NAR works to support a competitive, transparent and efficient marketplace, benefiting brokers, agents and consumers.
MLS Policy Provides Local Discretion
There’s a popular phrase among NAR leaders, and that’s “local discretion.”
NAR’s MLS policies have provided MLSs with local discretion because they are in the best position to understand and serve the needs of their market area.
“Local MLSs have discretion to establish business rules that govern their marketplaces, including—but not limited to—submission deadlines, service‑area definitions, required disclosures, listing statuses and data‑field requirements such as days on market, price‑change history, seller concessions and media or photo standards,” Rodney Gansho senior director of engagement at NAR says.
Examples of Local Discretion
Here’s how MLSs are following NAR rules while customizing their user experiences based on local conditions.
- The California Regional MLS (CRMLS) has its own listing status definitions with strict rules about compliance. For instance, any update to a listing’s status must be reported to the MLS or input into the MLS within two days, or the listing agent faces a status violation. The status determines whether a property can be marketed or shown, and whether the days-on-the-market clock is paused.
- The Houston Association of REALTORS® (HAR MLS) has unique media and public-facing display standardspdf for listings; for instance, rules about how many photographs are required, and how information populates in real time on the association’s consumer site, har.com.
- Stellar MLS is operated by 19 shareholder organizations, REALTOR® associations across Florida and Puerto Rico. The MLS covers multiple geographic regions and receives input from several associations regarding MLS rules. It has distinct geographic or market segments, where localized rules—like listing practices, compliance workflows and data requirements—are tailored to individual market needs.
Just as these MLSs evaluated the benefits of their policies, MLSs are considering different options like Coming Soon statuses and delayed marketing for their marketplace. NAR doesn’t take a position or comment on business models or strategies of individual companies; instead, when needed, it provides considerations on topics for MLSs to independently evaluate, as it did with Coming Soon statuses and Delayed Marketing last year.
“Our priority remains ensuring that real estate professionals can continue to serve their clients effectively, and that consumers benefit from access to comprehensive, reliable housing information,” Gansho says.
