After a meeting closed to the media, the National Association of REALTOR®s (NAR) has agreed to suspend its controversial no-commingling MLS guideline. Alternately known as the “segregation rule”, the guideline was frequently criticized as being insensitive to the client experience by making it more difficult to search for non-MLS listings. Following a June 3 vote from the Multiple Listings Issues and Policy Committee in favor of overturning the unpopular rule, it was widely speculated that NAR would make it official as early as Wednesday, June 4. Those predictions are now confirmed to have been right on the money.
What is the No-Commingling Rule?
If you’re not a real estate professional or actively searching for a home to purchase, you’re likely unfamiliar with the ban on commingling listings suggested by NAR. It states that official MLS listings are not to be displayed alongside non-MLS listings. This basically means that any MLS or service offering real estate searches that adopts the policy must either create a separate searchable page for non-MLS listings or refuse to display non-MLS listings altogether.
So why don’t these organizations just refuse the guideline? Some have done just that, like the California Regional MLS (CRMLS). But refusal excludes these services from access to the overall internet data exchange (IDX) feed. While NAR may have established the guideline, it’s the compliance of so many MLSs, reluctantly or otherwise, that has perpetuated this often-frustrating digital segregation.
The Controversy Surrounding the No-Commingling Guideline
From the very beginning, there’s been a marked sense of negativity to the no-commingling guideline, especially among companies where simple, user-friendly searchability is a priority. This was further exacerbated by certain MLSs adhering to the guideline while others refused it. The aforementioned CRMLS is particularly notable for its refusal since it’s the largest MLS in the United States.
But perhaps the sharpest criticism followed digital real estate marketplace Zillow’s hardships in trying to honor the no-commingling guidelines. Following NAR’s no-commingling declaration, Zillow instituted a two-tab system in which one tab presented official MLS listings, whereas the other tab displayed non-MLS listings. Though Zillow complied, they weren’t exactly enthusiastic about it.
Zillow’s Move Away from Commingling Restrictions
Reluctance gave way to frustration when Real Estate Exchange (REX) filed an antitrust lawsuit against both NAR and Zillow when the latter’s institution of the two-tab system tanked REX’s web traffic. Ultimately, REX lost that case and now no longer exists. But the experience was likely a factor in Zillow’s decision to reassess the way it displayed listings on its website.
It likely wasn’t the sole reason, though. Since 2021, Zillow has petitioned NAR to do away with its no-commingling guideline to no avail. Following its court victory, the real estate marketplace reversed its decision to adhere to the no-commingling rule, with Zillow’s Vice President of Industry Affairs Matt Hendricks going on record to state, “Consumers want and expect a single-search experience, where all available homes for sale can be viewed seamlessly.”
The No-Commingling Rule Begins to Crumble
Zillow took the question to the people in a 2023 survey. Unsurprisingly, 91% of homebuyers responded that they wanted to see all of their search results in a single response, free of charge. On June 3, the Multiple Listings Issue and Policy Committee reconsidered its stance on the no-commingling guidelines, voting to overturn the rule.
The committee stated that the no-commingling rule is “outdated” and is no longer bringing the benefits it once offered. But the committee wasn’t the sole word on whether the no-commingling guideline gets dissolved. NAR still needed to weigh in on whether the rule had outlived its usefulness.
More Convenience for Clients
Speculation gave way to certainty on June 4 when NAR officially voted in a closed-door meeting to rescind the controversial no-commingling guideline for MLS and non-MLS listings. Could this be the start of a more user-friendly search experience for homebuyers? With real estate sites now at liberty to post MLS and non-MLS listings in a single convenient search, it seems likely.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
