Is NAR protecting homeowners—or just protecting inexperienced agents?
That’s the question Compass CEO Robert Reffkin is raising in the wake of major industry shifts, including the DOJ’s investigation into NAR’s Clear Cooperation Policy.
According to Reffkin, long-standing NAR rules have artificially propped up inexperienced agents while actively reducing the profits homeowners could make when selling their homes.
In Compass’ Q4 2024 earnings call, Reffkin didn’t hold back, stating:
NAR’s rules artificially propped up the least experienced agents and the smallest brokerages, resulting in the number of agents in the U.S., increasing nearly 100% since the year 2000, while during the same time period, the U.S. population grew only 20%, and the number of annual home sales declined by 20%.
With the settlement forcing NAR to eliminate anti-competitive policies like mandatory buyer agent compensation—and the industry debating the merits of NAR’s Clear Cooperation policy— the market is shifting rapidly.
According to Reffkin, that’s good news for homeowners who want to maximize their profit when selling their homes.
Reffkin on NAR Rules
Reffkin argues that NAR’s revenue model was designed to benefit from a high number of agents paying dues—whether they were effective or not. This led to policies that kept top agents from gaining market share while enabling underqualified agents to stay in the game.
I believe they don’t want large brokerages and top agents to gain market share because it would result in less agents in the industry and less revenue from agent dues.
One of the biggest issues? Inexperienced agents could work with buyers without requiring a commitment, making it easier for them to secure business, even if they lacked experience or market expertise. That’s no longer the case post-settlement:
Post August 17th, that same inexperienced agent now must say to the buyer, ‘You need to sign a buyer representation agreement before I can show you properties. We need to agree on my compensation up front.
For consumers, this means a shift toward more professional representation, where agents with experience and market knowledge rise to the top.
After all, unlike NAR, consumers aren’t interested in seeing NAR membership continue to grow (or even to remain as high as it is); they only want to work with the best.
Reffkin’s Stance on the Clear Cooperation Policy
One of the most damaging NAR rules, according to Reffkin, was the Clear Cooperation Policy, which required listings to be entered into the MLS within one business day of public marketing.
While marketed as a consumer protection measure, Reffkin argues that it did the opposite—stripping homeowners of the ability to test pricing strategies privately and increasing their risk of price reductions.
Compass’ internal data supports this claim:
- Homes that were pre-marketed as Compass Private Exclusives or Compass Coming Soon sold 20% faster once they hit the MLS.
- 30% fewer of these homes had price drops compared to those listed directly on the MLS.
- Properties that followed this strategy sold for an average of 2.9% more, equating to a $29,000 higher sales price on a $1M home.
Given the improvement in price we have observed from pre-marketing, we believe this puts more pressure on NAR and MLSs to avoid liability by ending Clear Cooperation immediately.
For homeowners, this means more control over their sale and potentially higher returns. For agents, it represents a fundamental shift in how listings are marketed and sold.
The Free Market Will Reward the Best Agents
With NAR’s restrictive policies falling away, Reffkin predicts an industry where top agents and brokerages will naturally gain market share—just like in other professional industries.
The best agents are going to thrive in the new future. They’re going to gain more market share and earn more money, which is ultimately best for the consumer because, unlike NAR, which gets paid per agent, the consumer doesn’t want an industry of over 1.5 million agents. The consumer just wants to work with the best agents.
As larger brokerages with experienced agents gain ground, the industry is set for a new level of competition. And as Reffkin argues, the result could be an industry where skill—not outdated regulations—dictates success.
