San Diego, California
A collection of notes and observations by Saul Klein, CEO of Point2 Technologies and InternetCrusade.
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January 2007
Jan. 4, 2007
Categorized in: MLS Issues
Hot off the press is the announcement of Point2 Technologies launch of
the Point2 NLS.
You've heard us say that it is time for real estate professionals to
take back their future.
After taking an in depth look at Point2NLS, we believe it is the right
step at the right time.
Saul, John and Mike
******************************************************************
First National Listing Service for Real Estate Launched
Point2 NLS Gives Real Estate Professionals Complete Control of Listings
and Breaks Down Artificial Geographic Boundaries for National Listing
Exposure
Saskatoon, SK and Vancouver, BC - January 04, 2007 - Point2 Technologies
Inc. ("Point2") today launched Point2 NLS (www.Point2NLS.com), the first
national listing service for licensed real estate professionals. The new
service is launching with nearly 105,000 members in its roster.
Unlike a traditional Multiple Listing Service (MLS), which is primarily
an offer of compensation and where rules are enforced with fines, Point2
NLS is advertising and marketing focused, does not apply membership
fees, and is self policed by its user community.
Point2 NLS is designed to give real estate professionals complete
control of their marketing relationships and of their most valuable
marketing assets - their listings.
The new platform allows members to selectively advertise listings on
peer websites and on third party consumer search sites. Members always
retain control over who displays their listings and where.
Proprietary Point2 NLS data control capabilities are designed to help
real estate professionals take back their future, which has been in
question given the proliferation of technologies and business models
that have allowed virtually anyone to leverage property listings
featured on the Internet, for their own benefit.
"Point2 NLS brings to bear the true value and power of organized real
estate. It has enhanced the best features of a traditional regional MLS,
those being advertising and organized cooperation amongst professionals,
and mixed them with web 2.0," said Brendan King, chief operating
officer, Point2 Technologies." "Complete control of listing assets,
choice in marketing partners, wide syndication exposure, rich deep data,
virtual tours for every listing, consumer empowerment and participation,
no regional boundaries and, a drive to provide detailed analytics and
return on investment (ROI) data on advertising investments across the
network are really what Point2 NLS is all about."
Point2 NLS also breaks down artificial geographic barriers and
standardizes listing content data structures to maximize listing
exposure, facilitating a richer, more comprehensive real estate search
experience, increasing value and benefit to end consumers.
Said Saul Klein, InternetCrusade President and CEO: "I applaud and
support Point2's efforts to give control of the advertising and
marketing of listing information back to the real estate professional.
It is the right move at the right time."
Based on Point2's proprietary, patent-pending technology, Agent
HandshakeT powers the peer to peer advertising capability of the new
service.
Point2 NLS members can add and store unlimited listings, each including
up to 36 photos and extensive property details. The system also empowers
consumers by allowing them to directly participate in the marketing of
their property. At the discretion of the real estate agent or broker,
home sellers can add content to their property listing, through a Seller
Login option.
Once entered into Point2 NLS, members can easily and efficiently
advertise listings on a limitless number of peer websites, and on any or
all of Point2's listing syndication partner sites, for free, including
Google Base, Yahoo! Classifieds, Trulia, Point2 Homes, Oodle, Propsmart,
Livedeal, Edgeio and others.
Additionally, members can leverage listing content to book spotlight
advertising on applicable sites including NYTimes.com, all through the
same, simple check box process and interface.
Users can also integrate their Point2 NLS listings into their existing
website or blog, irrespective of who their service provider is.
Other key Point2 NLS capabilities include an advanced lead management
and incubation component, and performance analytics that capture traffic
data generated from each of the advertising channels.
Membership in Point2 NLS is open to all licensed real estate
professionals irrespective of geographic location or affiliation. The
system is easy to use and can be accessed from any computer with an
Internet connection. Comprehensive training is offered to the members,
online, also free of charge.
The Point2 NLS website is now live. Licensed real estate brokers and
agents in the United States, Canada and around the world can sign up at
www.Point2NLS.com.
About Point2 Technologies Inc.
Point2 Technologies provides online marketing and eBusiness software
solutions for the real estate and heavy equipment industries. Leveraging
Point2 proprietary and patented technology, Point2 develops and markets
software solutions that enable organizations to conduct business over
the Internet more easily and more profitably. The company is the largest
provider of online marketing and lead management software for real
estate professionals, led by its flagship product, Point2 Agent, with
nearly 105,000 subscribers in 85 countries. Point2 is also one of the
largest providers of e-commerce solutions to the heavy equipment
industry, powers Caterpillar Inc.'s global heavy equipment dealer
network and owns and operates UsedIron.com, one of the largest used
equipment venues online.
Founded in 1996, Point2 Technologies is privately held and employs a
staff of 100 at its headquarters in Saskatoon, SK and its Vancouver, BC
offices. More information can be obtained at www.Point2.com.
###
Point2R is a trademark of Point2 Technologies Inc. All other company and
product names may be trademarks of the respective companies with which
they are associated.
Media contact:
Roger Noujeim
Public Relations Director
Toll Free: 1-888-955-7900 Ext. 224 (U.S. and Canada)
Tel: 1-604-675-9393 Ext. 224
rnoujeim@point2.com
Jan. 4, 2007
Categorized in: MLS Issues
Hi everyone,
Below is a recent statement I made to an Association Executive, which was than forwarded to a local director. After reading the statement, the director asked the question which is stated below, along with my answer.
Here is the statement I made:
REALTORS need to know not only technology, but what the future will demand from them in the way of service...as MLSs disintegrate and consumers market their homes themselves, turning to REALTORS for negotiating, contract writing, and a stress-reduced closing.
The value proposition a REALTOR makes needs to be examined, recreated, and articulated.
To which a Local Director commented and asked:
I would be very interested to understand his position on the disintegration of the MLS's. Is this based on the attack by the DOJ and the discount brokers?
To which I answered:
In my view, the Discount Broker aspect of the DOJ claim against NAR and organized real estate is a fiction on the part of the DOJ.
It is an imaginary evil conjured up by the DOJ for their purposes, their purposes being both overt and covert action to "bring down"
organized real estate as we know it.
Personally, I believe the attack by the DOJ goes way beyond the MLS and their claims of anti competitive activity. I see it as a full scale assault on organized real estate. It is the beginning of what could lead to excessive damages (this is an anti trust action after all) and loss of control of the most valuable marketing asset of brokers...their listings. You can call me an alarmist, but I'll put it on the table right now...the DOJ may not be done after the MLS case, should DOJ prevail. This action could be followed by future attacks on the pillars of organized real estate, the three way agreement and the broker dues formula. Never happen you say? I would not put anything past the political aspirations of the altruistic-claiming DOJ. There is much more here than meets the eye.
Based on DOJ actions and a reading of the documentation, and an understanding of the history of IDX, VOW, ILD and the industry itself, there should be no doubt that the DOJ is out to make a statement and inflict harm and penalty on the REALTOR organization, and, unfortunately to consumers as well. An organization whose duty it is to protect the consumer is acting in a way that is contrary to the best interest of the consumer...the DOJ is either too stupid to understand what it is doing or the DOJ is "sly like a fox."
So, the answer to the question posed by the local association director is yes, DOJ and also FTC actions are a part of the reason I believe what I do about the future of organized real estate and MLS.
Of equal importance, however, is the emergence of online marketing and advertising sites such as Craig List and Google base (which now has all of Houston's listings). Sellers of homes to future generations of homebuyers will not see any value in proprietary data bases when there are public data bases with built-in marketing tools and content beyond the minimal content found in many MLSs, as well as powerful search tools that allow consumers to find just about anything that is on the Internet. The need to aggregate data on computer systems in a local geographic area no longer exists.
The evolution of the Internet and technology and the evolution of consumers and their ability and inclination to do more online themselves are driving forces which will assist in the death of MLS as we know it. Access to listing information and the advertising of listings will remain a part of the buying and selling process, but the means to achieve this end are chagrining right before our eyes.
How "into" online and virtual worlds are consumers? Go to http://SecondLife.com for a veiled glimpse of the future and look for the frequent articles about what some refer to as the "metaverse."
At InternetCrusade we have been saying since the creation of REALTOR.com, and the road since traveled with IDX, VOW and ILD, that REALTORS need to "Take back their future." We continue to believe this and the time for waiting has ended...that time is now. It is time to get involved, to understand, to educate, and to take action.
Saul
Jan. 4, 2007
Categorized in: MLS Issues
In California, a real estate licensee need not be a member of any REALTOR Association to participate in the MLS. This as a result of the Palsson case in 1976.
Here's a summary of the Palsson case:
California Supreme Court Holds Board of REALTORS Membership Guidelines Violate Antitrust Laws
In Marin County Board of Realtors v. Palsson, the Supreme Court of California held that a Marin County Board of REALTORS (Board) bylaw which limited membership to persons "primarily engaged in the real estate business" violated the Cartwright Act (the state equivalent of the Sherman Antitrust Act). The court also ruled that a Board rule which denied non-member salespeople affiliated with a REALTOR member access to its multiple listing service information violated the Cartwright Act.
The court analyzed the bylaws under the Rule of Reason Test which weighs economic effects to competitors and consumers against justifications for the practice.
The Marin County Board of REALTORS was an association of 255 REALTORS, or approximately 75% of the brokers in the county. In 1972 alone, the Board accounted for 2,964 sales with a value exceeding $130 million. One privilege of membership was access to the Board's multiple listing service. The exclusive nature of the information in this service was assured by a Board bylaw which prohibited members from sharing the information with non-members.
Palsson, a licensed real estate salesman, applied for Board membership after he secured employment with a broker who was a Board member.
Palsson, an airline flight engineer, was denied membership because he could not satisfy a Board bylaw which required that associate members be "primarily engaged in the real estate business." This provision was enforced through sanctions against a member broker who shared offices with or employed a person denied membership in the Board. Thus, a salesman denied membership was also denied employment with 75% of the residential brokers in the county. Palsson contested the denial, asserting that the Board's access rule and "primarily engaged" bylaw violated Cartwright Act provisions regarding restraints of trade.
The Supreme Court of California held that only unreasonable restraints of trade are prohibited, but that there are certain practices which are conclusively presumed to be unreasonable (called per se violations).
Other practices affecting competition are evaluated under the Rule of Reason Test which weighs the economic effects of the practice on competition against the possible justifications for the practice. In its analysis of economic effects, the court held that both the rule and the bylaw posed serious dangers to competitors and consumers. The court based this holding on the 1972 Board sales results and the high percentage of broker members.
The Supreme Court of California then shifted to a discussion on the justification of Board practices. With regard to the primarily engaged bylaw, the primary justification was to further the professional and ethical competence of the real estate industry. After weighing the justification against the effects, the court concluded that the bylaw, by excluding from membership all part-time salesmen, including the most ethical and qualified among them, was an anti-competitive regulation which could not be justified by the Rule of Reason. As for the access rule, the primary justification was to make membership attractive. Upon weighing, the court found that access to the MLS was so essential to non-members that such access must be granted to all who chose to use it.
Marin County Board of REALTORS v. Palsson, 16 Cal. 3d 920, 549 P.2d 833, 130 Cal. Rptr. 1 (1976).
Saul
Saul e-PRO/CFP/GRI
President/CEO, InternetCrusade
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