M
ost Multiple Listing Services (MLSs) quickly adapted to the new residential real estate practice changes before the implementation deadline. However, how they continue to evolve to meet industry and public needs in this changing landscape remains a pressing question. This issue was discussed at NAR NXT: The REALTOR Experience in Boston earlier this month.
A panel discussion on "The Future of the MLS" brought together various perspectives from MLS executives, brokers, and attorneys. They shared insights on data sharing and privacy, communicating the value of MLSs, and how individual players will navigate ongoing disruptions in real estate.
An efficient marketplace is essential for the industry's success. Errol Samuelson, chief industry development officer for Zillow, emphasized that MLSs provide sellers with maximum exposure, strategic pricing information, equitable access to homes on the market, and accurate data for policymakers and professionals.
Samuelson noted that comparing the US real estate experience to other countries often overlooks existing costs and barriers. He cited Australia as an example of a subpar experience, where transactions are more expensive due to inefficiencies in their marketplace.
A "Future of MLS" panel discussion featured Art Carter, CEO of California Regional MLS; Errol Samuelson; Kymber Lovett-Menkiti, president of Keller Williams Capital Properties; and Robert Reffkin, founder and CEO of Compass. The discussion was moderated by Brian Donnellan, president & CEO of Bright MLS.
The panelists agreed that a strong MLS is crucial for the industry's success. In New York City, where there isn't a robust MLS, cleaning data costs more than in other areas combined. If all MLSs were like New York's, it would harm brokers.
In response to a question about whether MLSs could survive without showing offers of compensation, Carter pointed to research conducted by CRMLS. The study found that brokers value transparency and accurate data over compensation information.
Lovett-Menkiti emphasized the importance of presenting data fairly and accurately. Her agents adapt to practice changes while continuing to get paid. She asked, "What's the benefit to the consumer?" If it doesn't serve consumers, is it valuable in the long run?
Reffkin suggested that MLSs balance the interests of sellers and buyers better. For example, if buyers deserve to know days on market, sellers should know how long a buyer has been looking. He also urged MLSs to prevent third-party sites from hiding or downplaying listing brokers' names.
Carter agreed with Reffkin's suggestion, stating that many MLSs require third parties to show listing broker names and contact information. The National Association of REALTORS' Internet Data Exchange (IDX) rules also mandate this requirement for members who use listing feeds on their websites.
The panelists concurred that standard rules benefit consumers by promoting a more satisfying user experience. Consistency helps the industry innovate, as differences in treatment between listings can confuse consumers and hinder innovation. Carter suggested that competition will drive innovation and serve consumers best, with brokerages competing on service and price, just like MLSs should.
