Oct. 19, 2011 - MLS Questions? Who has the answers?

     Sometimes I feel like I'm standing in an empty room and all I hear is the echo of my own voice. This is one of those days.

     Two MLS-related news stories are bouncing around the internet this morning-one is about the NAR IDX policy proposed changes, and the other is about FSBOs.

     (Well, let's face it; they're pretty much about the same thing…)

     In a nutshell, the NAR IDX issue is this: "The big news, as many have already heard, is that the Franchise IDX policy will be repealed in its entirety. The overall thrust of the proposal appears to be one aimed at restoring the status quo ante." The quotation is taken from this morning's blog post by one of my regularly-read industry voices, The Notorious Rob. Rob proceeds to examine what this proposed policy change will mean, and then asks the question, "just what percentage of the Directors of NAR, who will be voting on this proposal on Monday in Anaheim, understand the issue? How many will have studied the issue? How many will have thought about it at all?.... Could someone explain to me how hundreds of NAR Directors are not in violation of their fiduciary duty as a director of nonprofit organization?"

     The other topic has to do with what's happening in the world that exists outside of the pre-meeting hysteria of an NAR convention. In this case I'm referring to Zillow's recent announcement that it has added 45,000 'for sale by owner' listings to its database of existing FSBO web and mobile real estate shopping , allowing independent home sellers to distribute their listings free of charge. Zillow obtains these listings through individual home sellers as well as listing feeds from ForSaleByOwner.com™, HomesByOwner.com®, owners.com® and Postlets® . The latter is a Zillow company, by the way, which allows home sellers, real estate agents and landlords to generate one listing and dispense it to Zillow's more than 24 million monthly unique web and mobile users, as well as 13 other sites including Yahoo!® Real Estate and craigslist®.

     We're not talking peanuts here--Yahoo Real Estate is a formidable challenger to realtor.com. But what really set me back was the association manager who, upon hearing of the Zillow announcement, shrugged and said (somewhat disdainfully), "I don't keep track of Zillow."

 

Associations of REALTORS® and their multiple listing services must enable MLS participants to display aggregated MLS listing information by electronic means. Electronic display subject to this policy includes display on participants' public websites, displays controlled by participants on other websites, display on social media sites used by participants, RSS subscription, and applications for mobile devices. All electronic display of IDX information conducted pursuant to this policy must comply with state law and regulations, and MLS rules. Any display of IDX information must be controlled by the participant, including the ability to comply with this policy and applicable MLS rules.

     And I bet you're thinking: "Now how am I gonna enforce THIS on a budget that has been shrinking as members are dropping away?"

     Well, don't worry about real estate buyers and sellers: they may be looking elsewhere. As Zillow CEO Spencer Rascoff says, "Our integrated approach to marketing all types of real estate listings, creates the most comprehensive and data-rich shopping experience for web and mobile."

     Oh, and don't worry about the MLS subscribers either. They want to be where the consumer goes. That's where the money is.

Oct. 19, 2011 - RE: MLS Questions? Who has the answers?

OMG - you mean there's yet ANOTHER example of private enterprise (Zillow) answering the needs of our clients (consumers) while Realtors stick their collective heads in the sand and hope the problem will go away?  I'm Shocked!!

Spencer's mantra, "Our integrated approach to marketing all types of RE listings creates the most comprehensive and data-rich shopping experience for the web and mobile" should be carved into the lobby wall of every MLS.  

Thank you for feeding the discussion.  We in the MLS industry need to address these growing concerns in open forum or we will be left behind with your ostrich graphic as our epitaph. 

Oct. 19, 2011 - RE: MLS Questions? Who has the answers?

 Hey Jude (reminds me of a song),

Not much has changed in 20 years has it.  Control the data control the data, control the data.  Some many may not like this over simplification and perhaps can spout chapter and verse about why this Zillow thing and this IDX thing are the most humongous issues to face us since the invention of movable type.  

Sorry, being a bit irreverent I suspect.

IMNSHO, this issue is a dinosaur that has yet to realize we are long past the Jurassic Period.  But as long as we have associations that play the shell game using the MLS to underwrite to their operation and companies more concerned about their "double dip" instead of value added service, I guess things are not going to change.

The "sell-around" is easy on Zillow - its an AVM.  Studies I have seen suggest the very best AVM in America is 80% right 75% of the time(and it ain't Zillow's).  That is like saying if you go east far enough you will find the ocean (BTW, 80% right 75% of the time is an accuracy rate of 60%).  This should hardly be competition for those who are competent REALTORS.

As for IDX, maybe I'm just an old dog but and just don't get it but here is my take there as well.  

1.  Long before there was IDX we advertised in Newspapers.  Those of us who had our act together always had where we were advertising right by us when it was our turn to take calls.  Why, not so we knew what they were calling on and would recognize the ad, but because we wanted to see what our competitors were running allowing us to help them with those homes as well and preventing them from calling the other company.  To me IDX is a modern day version of the same thing.

2.  My studies have shown (and you know I do the research) that when my rather large office runs ads in a publication, we get an increase of activity, but not by buyers calling the office, by other agents calling to show the home being advertised.  This is because of Buyer Agency; and while some companies may not get it, the buyer consumer sure does.

So let whoever, wherever post your listing as long as it isn't a scam.  In this market if it is a good house it will sell, the buyer will have their agent and you will get paid.  If it is not a good listing shame on you for thinking you could have sold it to some one you probably told, "Trust me."

So, as an NAR Director would you say I am informed and fulfilling my fiduciary duty when I observe that I find both issues reminiscent of a Shakespearean play?  Perhaps not, but at least I have thought about them.