We agree with your thoughts.

This completely embraces the foundation we need for the future of our business to benefit our customers the most. Information is the key, and the smart Realtor will be the source for explaining the information.

We can embrace all the technology we have available, but until we change the system of how we are paid, nothing will change except the amount of money going out of our pockets.  Just as web 2.0 and then web 3.0 is potentially exciting and will have some benefits, we need a revolution in our commission structure, mainly on how the buyer's agent is paid.  Force the public to pay for buyer services instead of the seller and you will see a real revolution.

As usual, Saul, you're on the money. I like the 5.0 name, but I have to point out that the concept isn't new. Jim Sherry talked about a similar concept a long, long time ago, describing an "information utility" in which the listings for sale would only be a small part.
In your upcoming White Paper, I hope you "Crusaders" plan on addressing the larger issue of property-related data sets that affect a consumer's decision process to buy in a particular area, like demographics, crime, school, lifestyle reports and so on.
Looking forward to reading more.

We may find that government agencies have many of the same objectives. Cuyahoga County (Cleveland) just implemented a GIS system which links information from the Recorder, the Treasurer, the Auditor, the Engineer, mapping services, and demographics including crime to provide a "one stop" link similar to what Saul describes.  Of course, the MLS data is not part of that, at least not yet, but it's a start.

Saul, you are always cutting edge.  I do, however, concur with the Home Realty people that there must be a change in the ways that licensees cooperate and compensate.  I will look forward to the full release of your idea.

I agree completely, more information is better information, the new system should also include clients comments, sold prices in time, money owned on the property.   Thank you.

 Looking foward to your White Paper.  Information is the key to everyting.

Joe Foster    E-Pro

It is refreshing to see us return to the Code of Ethics: " In recognition and appreciation of their obligations to clients, customers, the public, and each other, Realtors continuously strive to become and remain informed on issues affecting real estate and, as knowledgeable professionals, they willingly share the fruit of their experience with others."

Saul, your description of MLS 5.0 appears to meet that obligation. We should be sharing our professional knowledge and skills. Of course, we need to be sure the public is informed that compensation is required for our consultative services. That means that "agency duties" need to be understood by client and agent alike. And, as said by others, we should be paid by the person we represent.

Carmen Multhauf

Saul,
Your perspective is as usual; insightful and appreciated.  All industries need leaders like you to create new paradigms, and be the catalyst for others to collaberate in developing the vision, systems, and leverage to attain critical mass and revolutionize operations.  I look forward to reading your White Paper.
Gratefully yours,
TomScheu
MBA, GRI, ABR, e-PRO, CNC
GO ARMY TEAM!

Sorry Saul --

Red Flag, "MLS 5.0 provides a single point of entry for listing data."

That's a gateway which equals control and insecurity.

If you need a peer review of the technical aspects of the white paper, please ping me.

Corey

Carmen Multhauf said: We should be sharing our professional knowledge and skills. Of course, we need to be sure the public is informed that compensation is required for our consultative services. That means that "agency duties" need to be understood by client and agent alike. And, as said by others, we should be paid by the person we represent.  And earlier "cooperation and compensation" was mentioned in remarks.  It's a huge issue.  If the public will have a conversation with the agent (listing or the company) on a property they've viewed on 5.0 and agency relationships are explained correctly, in most states it means that the agents and buyers will have little choice except to work in a dual agency posture.  Will there by no buyer representation without dual representation?  Or will the consumer buyer inquiring on a property be treated as we did years ago, as a customer (no fiduciary duties, just honesty)?  What will happen to advocacy and advice for the consumer?  Will it disappear and be replaced with consulting, but no loyalty?  These questions will have to be addressed if the public is truly going to be served.  Joseph Marovich

Thanks all for the comments. As I work through this Paper, I keep seeing more that I want to add, and so I will work on it a few more days.

I also think I will publish the entire document and then push it section by section down our channels for comment.

Saul

I happen to agree 110% with Joseph Marovich's position regarding MLS 5.0.  The MLS was never designed for unadulterated access.   When a buyer finds an MLS property on line through IDX, he or she has no idea what the relationship is with the owner and their agent!!  The buyer is totally at the mercy of the owners agent, unless they are being represented through an EBA.  If we are going to take it to the next level relationship disclosure would have to be exposed on line as will as compensation offered. 

As I see it, consumers are fed up with, who represents who and who is really loyal to who in a real estate transaction!  We have a choice, we can represent somebody or represent nobody, unfortunately the consumer has no clue as to what that means, just  as clueless a lot of agents and their brokers.  As for compensation!  Hey what ever it takes to get paid.  Right? 

Currently a listing can't be posted in the MLS unless compensation is offered.  Lets say a listing agent was offering 50 bucks as compensation in the MLS.  Let's say a buyer finds that property on-line, do you really think a selling agent is going to work for 50 bucks?   So what do you tell a buyer if you are a Dual Agent or a Transaction Broker?  What if you are a Single Agent with the buyer?  You going to ask them to pay you the difference? What you going to do if the buyer decides to call the listing agent?  You going to litigate for your commission?  Who you going to sue, the listing agent?  You may win your case but you'll only get 50 bucks.  You going to sue the buyer?  What's your procuring cause?  Media and law suits draw unsavory investigators, you don't build a business by suing buyers!  Can't we all agree, that examination of IDX needs to be considered before we move on to more confusion?  The only people finding success with the Internet and IDX are Lead Generators! It certainly isn't the Realtors!  There is nothing to prevent a listing agent from offering 50 bucks as a selling fee to access the MLS and IDX.  This business is about developing relationships with people.  I fail to see how the Internet provides that relationship.  I see more suspicion rather than loyalty being offered when it comes to the Internet.

The day I get  to own part of the MLS is the day I will believe that all this change is going to help me.  Since the average Realtor will still have no control over who can advertise on the MLS, we will continue to be the ultimate providers of cash to the portals.  With builders, FSBOs and the like now being able to advertise,(at lower commissions) I still don't see how all this technology is going to increase my average commission.  If  all the things that I have been taught over the years, (real estate is local) why then the sudden push to have all of this change.  Simple, if you own the portals, or in the case of some folks, the blogs and websites, it is just a transfer from one providere to another.    I ask anyone that is listening, can I own part of the MLS.

Responding to the line from "Home Realty Group" posted on Jul 30, 2008, at 11:20am.

Just who owns local mlss is a huge and often highly guarded secret, which is answered with cryptic phrases such as, "I think we sold those rights to NAR.." or, "I don't know, who cares. It is separate from our local association."

Ask your local President in the next board meeting, "Hey, just who owns the stock in our local mls corporation?"

Please share that response here.

Thank you.

Philip from Lubbock

Responding to Phillip about "who owns the stock in your local MLS"?

It is the brokers, who are members and have shares of the stock.  I am a broker and I was given shares of stock when I became a member of our local MLS.

Victor Picazio

Preferred Choice Realty LLC

Licensed Real Estate Broker and Owner

Regarding the concept of a real estate database that is 'open and collaborative', I agree that the social networking phenomena on the Internet has proven both the value and interest in the 'wikiopedia' model.  However, for real estate professionals there will still need to be an effect data control and policing to ensure and certify the data as accurate if we are going to both use it and be liable for communicating it to our customers and clients.

Regarding the concept of a parcel-based system, I agree and have thought of such a system being available for many years now.  However, unlike the recently proposed "Gateway" system that now goes by another name I can't remember, my reason for such a system was not to expand or minimize market borders and overlap.  That is a legitimate and worthy goal, but the NAR mantra that "All real estate is local" still holds true.  The majority of our members probably do 85% of their business in a 10 to 12 square mile area, and the issue of MLS and market borders is not important enough to promote this concept to success.  What I have always thought our members really want is a comprehensive database, based on parcel data, with listing data overlayed along with every other possible data source (national and local).  The reason is what our members really want to do is simply, with one query or click, request all available information of any kind on the property located at 123 Elm St, AnyTown, USA.  Then with one operation they receive everything possible on that property, tax, listing, maps, photos, evironmental sites, history, deed restrictions and whatever else exists.

Create that system, and I think everyone will want it.

John Hicks - Richmond Association of REALTORS(s)

Saul, You are definately on the right track.  I have reda all of the previous comments and see nothing that should stop it.