A Look into the MLS Crystal Ball

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MLS Matters by David Charron

RISMEDIA, Jan. 2, 2009-It’s that time of year again. Time to dust off the crystal ball, peer deep into its hazy core, and make a few predictions. Predicting the death of the MLS will become less fashionable and more ridiculous.

The MLS industry is fragmented, sometimes slow to move and subject to a host of competing political considerations. We are also facing increased competition. But the MLS is not going away.

Here’s why. We-our members-have the content. Listings and content, as the saying goes, are king. Second, we have adoption. The MLS is not an ancillary service. It is a core tool. If MLS operators can add new value to their service in the coming year, they will continue to remain a central piece of their members’ business.

“Overlapping market disorder” will become more orderly.

This affliction-the condition of requiring members to join multiple MLS organizations with separate systems to practice in their own market area-has plagued us for too long. The good news is curative measures are taking hold.

I do not know of an MLS that is not considering or implementing some form of data sharing or consolidation. Technology is not the inhibitor to these efforts; politics and money, however, are. But the political tides are turning, and budgets are sure to follow. Brokers and agents will demand it because consumers want it.

NAR’s Realtor Property Resource Center (aka The Library)

I actually like this idea. However, the length of time it has taken to move (no pun intended) from concept to reality, coupled with the stealth communications campaign that surrounds it, gives me some pause. Coming from an industry that is attempting to redefine itself as one that promotes openness and transparency, this is problematic.

I know-we are not supposed to tip our hands to the bad guys. But come on!

Broker apprehension about public MLS portals will wane in most markets.
The debate about whether or not an MLS should maintain a public search portal has sizzled for the past couple years. That sizzle will become a simmer in 2009.
While local conditions ultimately dictate whether or not this makes sense in any given market, it will be increasingly common for brokers to look to leverage their MLS in new ways in the coming year. Why? Because they have to.

Online real estate companies will court MLSs like elusive lovers.

It’s already happening. I’ve been on a few dates myself. Big online real estate sites, perhaps realizing the peril of offering incomplete listing coverage to increasingly sophisticated consumers, are actively trying to cut deals with MLS organizations. Look for us to get enticed with everything from offers of revenue share to statements on certain pages that the user “should consult with a real estate professional to get more precise information…”

The difference between private and public MLS systems will blur.

Those MLSs that are successful with public entry portals will start considering the potential to merge certain elements of the consumer and professional database. As the lines blur between what is available to both parties, the cost of managing and innovating separate and distinct systems will come into question. Fast. This is going to be fun and will provide some great opportunities for innovation!

Mine is a partial view, bounded by my own position and biases. I am interested in alternative visions. I suspect you are too. E-mail me (david.charron@mris.net) with your ideas. I’ll share them in a follow-up article.

David Charron is CEO of MRIS (Metropolitan Regional Information Systems, Inc), the nation’s largest MLS.

For more information, please visit http://mris.com.

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