Yesterday a group of six northern California MLSs (Metrolist Services) who announced their plan to consolidate into a single 46,000 member MLS has named the new organization the Northern California Real Estate Exchange, or NCREX for short.  The new real estate exchange is expected to facilitate the sale of over $100 billion dollars of real estate annually. NCREX also released further details regarding its near-term consolidation plan. 

"The 12 person regionalization task force chose the term 'real estate exchange' because the term 'MLS' is somewhat outmoded and means different things to different people; plus it also has historical baggage attached to it." said Gregg Larson, CEO of Clareity Consulting. "We are trying to create a brand new real estate information exchange for the next 20 years, and we wanted to start with a blank sheet of paper to design it properly." Larson added, "A fresh name helps free up people's thinking, which opens the possibility to do something truly remarkable in northern California."  

NCREX has begun its search for brokerage owners and brokerage senior executives to fill 12 of its 15 director seats. The three remaining seats are reserved for the organization's future CEO and two outside directors.  NCREX is searching for broker candidates who are business oriented, successful, and well respected industry leaders. To best represent its participants and subscribers, the directors will come from a mix of small, medium, and large size companies. "NCREX is being designed to serve its brokers, agents and other subscribers, not to be a profit center. Our goal is to create a technically competent information management and service delivery organization that is financially stable and designed to meet the challenges of tomorrow's business world. NCREX is not being designed to enrich anyone or any organization in the process." said Larson, the NCREX spokesperson.

To better serve the current and future needs of real estate professionals in northern California, the MLS participants have agreed to standardize on a single set of business rules and regulations and a common database structure. The organization will begin mapping the multiple databases into one common database format in late January. NCREX expects to have the standardized and consolidated database completed and populated by mid 2006 and available to brokers and their authorized IDX providers by Q3 2006. The multiple MLS organizations will consolidate operations and convert to the new NCREX system throughout 2007.

It is believed the regional MLS will create efficiencies for real estate brokers and agents by eliminating the need to belong to and navigate multiple MLSs and conform to multiple sets of rules and regulations.  These changes will allow brokers and agents to better serve consumers. The organizations founding NCREX are REInfolink, Contra Costa MLS, Bay East MLS, East Bay Regional Data, Central Valley MLS and the San Francisco Association of Realtors MLS. Other Northern California MLSs are invited to join NCREX. 

The idea of a state-wide MLS has been percolating recently.  This is a natural first step in that direction. However, to date the MLS associations involved are in the greater San Francisco Bay Region.  It remains to be seen if other REALTOR association located throughout Northern California - notably Sacramento, Sutter-Yuba and some of the other fastest growing areas will join with NCREX to make it a truly Northern California MLS or if it remains primarily a tool for Bay Area users.