Attention Realtors: Watch Out For MLS 5.0
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With the National Association of Realtors convention coming up, Greg Swann of the famous (or infamous) Bloodhound Blog found this nugget on a new MLS system being proposed by Saul Klein of Internet Crusade and RealTown.
The basic concept is to bring the disparate MLS systems, MLS 5.0 to use Klein’s vernacular, under a general umbrella controlled by the NAR. That in and of itself is not that bad of an idea, who doesn’t want to make things a little easier.
But then you start to think about it. Well, this time I did not have to think about it, Greg did a damn good job of framing the counter argument.
What Klein is proposing, ignoring the presumed benefits to accrue to his own ventures, is to give the real estate industry one chokepoint, one bottleneck, so that the NAR can put a choke-chain around it.
Who will control that “single point of entry for listing data”? The NAR.
Who will control who can and cannot have access to listing data? The NAR.
Who will have the entire real estate industry in a chokehold? The NAR.
This is so diabolical, it makes me wonder if the fix is already in — if this evil plan is going to be rammed down our collective throats in November in Orlando.
Greg is right, once the feel good cloud evaporates from Klein’s plan I am left feeling squeamish. You see, I am not a Realtor.
And all of the innovation that has occurred in the real estate market has come outside of the NAR in the past few years.
When I think of the NAR I see a dinosaur trying to justify it’s place in the ecosystem. Realtors, why do you need them?
The NAR can not protect the cartel like it could in the past. That genie is out of the bottle.
But this new plan is a way to try to put the Genie back into the battle. Then they can have some sway over the Zillows and Trulias and the host of other innovators in the real estate market.
Where would real estate’s internet presence be if Zillow and Trulia could not access MLS data? You got it, Realtor.com and we know how much agents love that product, don’t we.
The innovators are quickly making the NAR a relic and the power for those who run it is ebbing quickly. So when you see moves like this MLS 5.0 that Saul is proposing you have to see it is as the NAR’s Waterloo. If they can not win this battle their empire is doomed. Maybe not today, maybe not tomorrow, but in 2025 the organization will become a remember when conversation.
And all those who derive their power or paychecks from the National Association of Realtors will fight tooth and nail to maintain the status quo.
Realtors, take the time to dive into this topic. It could have a big influence in your potential earnings down the road, and your freedom to innovate and be a better agent.
UPDATE: FBS Blog argues that standards not monopoly should be the guiding light for a national MLS. Must read.
However, the development of standards doesn’t require any central authority, only leadership from those who want to participate in the standards process. MLS software of choice for agents is possible technologically but standards are required, and that is why standards are the future of MLS.
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Comment by Greg Swann on 13 August 2008:
Bless you, Tom. Thanks for taking up the cause. This is a war on the burgeoning independence of individual agents disguised as a convenience. As you point out, the Web 2.0 players like Zillow and Trulia are also being targetted. On top of everything else, this is a complete betrayal of the principles that drive the Web2.0/3.0 world.
Pingback by The “MLS 5.0″ Manifesto: Everyone working in hi-tech real estate must oppose this vicious plan with every fiber in your being | BloodhoundBlog: National real estate marketing and technology blog | Realtors and real estate, mortgages, lending, on 13 August 2008:
[...] Elsewhere: The Real Estate Bloggers. [...]
Pingback by MLS 5.0 - TRNT.com/LIFE at TRNT.com/LIFE on 13 August 2008:
[...] now it’s been summed up for me by Tom and Greg from The Real Estate Bloggers and the Bloodhound Blog, respectively, and now I’ve [...]
Pingback by How Did Saul get the NAR’s Notes? | Real Central VA on 14 August 2008:
[...] and Tom have [...]
Pingback by FBS Blog » Blog Archive » The MLS of the Future Requires Standards on 14 August 2008:
[...] Duncan, Greg Swann and Tom Royce have all commented recently on Saul Klein’s writings on an MLS of the future. As Jim [...]
Comment by Bryn Kaufman on 15 August 2008:
As long as this does not restrict access to the data I think this would be a great thing because right now it is very difficult to support Websites for multiple markets.
Right now I get all the sold and withdrawn information from my local MLS, but I can’t support another Website for other parts of my state (Hawaii) because each MLS is so different. If NAR had one MLS with all the sold information and I could get it in one standardized format it would be wonderful!
Comment by Tom Royce on 15 August 2008:
Bryn
Good points but I would prefer that there be a standard for all as opposed to a master mls. The difference is that a standard all can use and folks can create new and dynamic benefits for all who use it.
If there is a monopoly then empire building and restrictions will be the dominant mentality.
Comment by Thomas Johnson on 18 August 2008:
Realogy has 30% of all the listings across the five brands. That may be a countervailing force in NAR’s monopoly grab.
Pingback by Transformation in the Air « OnBlog: The Onboard Informatics Blog on 9 September 2008:
[...] and questions about the vision of MLS 5.0, the interesting phenomenon is that the responses — almost all of which are negative, some even downright hostile — do not take issue with the basic [...]
Comment by dean on 23 September 2008:
Tom,
That would be like handing the keys to a M5 to my mom who loves to just drive 55.
“When I think of the NAR I see a dinosaur trying to justify it’s place in the ecosystem. Realtors, why do you need them?”
This quote says it all. If the NAR were really on the cutting edge, where they should have been all along, it would be a viable and valuable contributor.
Comment by Tony Sena on 24 October 2008:
NAR has enough controls over it’s members! We don’t need them to control a national MLS too and have to pay them to get an IDX feed from them!
Comment by Real Estate on 21 November 2008:
I have read Saul’s 5.0 paper. It is a re-enactment of the failed real tor.com try. He would control the in and out of data, the add-ons, the costs to agents, etc. As an active real estate broker (capegroup.com) I created a place where agents can get themselves found - for free called reindex.com.
Heath Coker