Feb 14, 2008
The Future of MLS . . . A Perfect Storm
14 Feb 2008
Posted by Scott Rogers
At 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.
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
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.
- 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?
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.