The Future of MLS . . . A Perfect Storm

Michael WurzerAt today’s MLS Forum, Michael Wurzer, of FBS (FlexML) characterizes the future of MLS as a “Perfect Storm” — with three storm fronts that are potentially shaping this future: Broker Consolidation, Web 2.0, and NAR vs DOJ.

(1) Broker Consolidation: Brokers are growing and consolidating, which is causing MLS’s to grow. Some MLS’s are consolidating, some are sharing data.

(2) Web 2.0: Key components of this movement include:

  • universal accessibility of information
  • open access to technology
  • consumer choice and particpation
  • independence, freedom and respect

Some companies that are involved (in varying degrees) in the Web 2.0 world are zillow, redfin, craigslist, google, point2, trulia, yahoo, and roost.

(3) NAR vs. DOJ: The basic accusation is that NAR is anti-consumer. Since NAR is Realtors, the syllogism is that Realtors are anti-consumer (fees are too high). Lawsuits create a status quo — no changes are made to make sure that the lawsuit isn’t complicated. This vacuum of innovation is being filled by many of Web 2.0 companies.

The Perfect Storm Is It Too Late?

Will the web run over the MLS? According to Michael, no. We define the web . . . and yet, at the same time, the web defines us. So . . . as Michael says, “The Future Is Now. ” We are defining our future today, by our decisions and actions — and the foundations are just being built. Some of the current trends include . . .

  • Standards: Standards are being defined (in real estate and other areas) to provide broad and deep definitions. The Real Estate Transaction Standard (RETS) is defining a listing in these ways, to allow for data portability. Data portability provides power and choice.
  • Syndication: Entering the data (listings) into one location, which then sends out out to many different web sites. RETS has created a syndication work group to try to standardize syndication. This standard will ideally be used by MLS vendors


Thinking Points . . .

Licensing Our Syndicated Data

What happens to the real estate content we provide to third parties via syndication? From Google’s terms of use, when content is submitted to Google, the submitting party is granting Google a “…worldwide, non-exclusive, royalty-free license to reproduce, modify, adapt, publish, and otherwise use, with or without attribution such Content on Google services.” However, it goes on to state that the “…license terminates when such Content is deleted from the Google service to which you originally submitted.” We need to consider developing standard ways to license our data. (ex. Creative Commons) Standards are just now being developed for all that matters. We have the opportunity to participate in that process.

MLS is More Than Technology

The MLS is essentially a social network, with (strangely), competitors cooperating. It is, to some extent, a representative democracy. This cooperation allows an aggregation of data. Without this cooperation, listings will not all be in one place. Thus, the question (again) is who is serving consumers? The aggregation of listings (via the MLS) is a service to consumers.

Moving Forward

  • IDX is a fantastic tool, but it lacks the standardization and full features necessary for moving forward. Perhaps IDX needs to be revisited, within the Web 2.0 context.
  • How should we cooperate on the web?
  • Which parts of the listing we want to share?
  • Are listings are advertising, or information?
  • Who are the members of the MLS?
  • Should the consumer be a “member” of the MLS? What if they agreed to our terms of use?

As leaders in the industry, we need to determine whether these trends, questions and ideas are just noise, or whether they are an indication of a major industry change on the horizon. The future is being formed right now . . . the question is who will determine this future.

Some of Michael’s recommended readings:

Looking for more insights from Michael Wurzer? Check out his blog: http://www.flexmls.com/blog.

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7 Responses to The Future of MLS . . . A Perfect Storm

  1. Jim Duncan says:

    Scott –

    Outstanding summary. You beat me to the post (and did it better than I would have.)

    The only thing that I would add is my disappointment at the attendance by fellow Realtors. For an issue that shapes and defines how we do business, having only 30 or so members in the room was, quite frankly both sad and telling. Complacency and indifference are not options as we move forward.

    I encourage all Realtors to educate themselves on the issues facing the future of the MLS – read Michael’s blog, ask questions of your leadership, read as much as you can.

    The future of the MLS is one of the most important issues we as a profession face, and the more we know, the better prepared we will be to influence the future, rather than have it done for us by others.

  2. Wow, great summary! I don’t think I could have done it better myself.

  3. Pingback: FBS Blog » Blog Archive » Loving Virginia

  4. Candy Lynn says:

    All I can add is I’m glad to have Michael at the helm of Flex MLS, LBVRAR’s MLS provider!

  5. Thank you for this post.
    I also recommend reading: The World is Flat and Wikinomics

    If it wasn’t on Valentine’s Day, I would have been there!

    I’m very much a proponent of Web 2.0 with the MLS. Take a look at http://www.FranklyMLS.com

    Frank

  6. Sorry I missed this session. I think everyone confuses the term MLS with the Internet display of listings. MLS has become a generic term to mean listings on the Internet, but in reality it is a very important contractual relationship that is efficiently created by technology. There has been very little change in the underlying reason for MLS, but tons of change in technology and what ancillary things we can do with the data. Unfortunately, many have forgotten (or never knew) why MLS systems were created and have come to think of them simply as data aggregators.

  7. Joel says:

    Great article. As a geek from a real estate MLS syndication website, we know that keeping data open is the best way to go.

    To add your MLS syndication feeds see:
    http://www.propbot.com/addYourProperties.php

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