Break down MLS walls and consumers still value Realtors
Consulting group examines interest in public MLS Web sites
By Glenn Roberts Jr., Friday, March 14, 2008.Bookmarking Sites
Consumers appreciate public property-search Web sites set up by multiple listing services, though such sites remain a divisive issue for industry professionals, according to a report released today by WAV Group, a real estate consulting company.
The "MLS Consumer Website Effectiveness Study" highlighted HAR.com, a popular real estate search site created by the Houston Association of Realtors, and gathered consumer and Realtor input about public MLS sites.
Citing a 2007 MLS Technology Survey conducted by the National Association of Realtors trade group's Center for Real Estate Technology, the WAV Group study noted that there has been a shift of Realtor sentiment in favor of public MLS Web sites.
While 34 percent of Realtors in the center's 2006 survey said they supported MLS public Web sites, that share grew to 52 percent in the 2007 survey.
Realtors opposed to public MLS sites have complained that MLS Web sites compete with Realtor Web sites, diminish the value of a Realtor and don't supply many leads, for example, and the study offers a counterpoint to these worries.
The group's research shows that consumers "do not agree that MLS consumer Web sites decrease the value of a Realtor. They felt just the opposite."
About 92 percent of respondents in the consumer survey said they appreciated the opportunity to narrow down a search at an MLS site before working with a Realtor, and 30 percent said they used HAR.com to help find an agent that they ultimately chose to work with.
That survey was based on responses from 403 consumers who registered at the HAR.com site within the past six months of the survey's distribution in October 2007.
Unlike some MLSs, the Houston association markets and invests heavily in its public MLS portal at HAR.com.
HAR.com had 1 million unique visitors in January 2008 and about 1.2 billion total hits, according to the report, and the site receives an estimated 130,000 visitors to the site each day, on average.
Also, the average visitor viewed 21 detailed listing pages and spent nine minutes on the site during each visit. In 2006, the site generated about 566,000 leads for HAR members, or about 22 leads per member for the year.
And a major real estate broker in the region received about 160,000 leads in one year, according to the report.
ComScore Media Metrix, a company that provides Web metrics data, reported that HAR.com attracted 57 percent of the total real estate Web traffic in that region in January, followed by Yahoo Real Estate at 12 percent and Realtor.com at 7 percent.
In Dallas, meanwhile, a market without a dominant public MLS Web site, the traffic was widely divided: Realtor.com had 14 percent of the traffic, followed by Yahoo Real Estate with 11 percent, Homes.com with 10 percent, Ebby.com (a broker site) at 9 percent, and Trulia.com with 9 percent.
Bob Hale, president and CEO for the Houston Association of Realtors and an outspoken advocate of public MLS sites, said he is encouraged by the study, particularly the finding that such sites allow consumers to do their own research while facilitating a connection with Realtors when they are ready.
He said some of the largest MLSs in the country are investing more in their public search sites. He noted that SoCal MLS in Southern California has a public Web site. And Washington, D.C.-area MRIS, the largest MLS in the country, "is in the process of upgrading tremendously their public Web site."
He added, "We're starting to see brokers buy into the idea." The WAV Group report states that about 350 MLSs, or 40 percent of all MLSs, operate consumer Web sites.
While Hale said major MLS public sites can grow in popularity and consolidate just as MLSs have consolidated, he believes there will still be room for Realtor.com. That site, operated by Move Inc. through an agreement with the National Association of Realtors, aggregates property data from MLSs across the country. "I think there's room for both -- I don't see it as Realtor.com or HAR.com," he said.
About 93 percent of HAR.com registered users said the site was the primary site they use to look for Houston-area properties, and most respondents said they prefer that site because it "has all Houston listings," according to the WAV Group survey.
Among the improvements that consumers said they wanted to see at the site, mapping topped the list. "They want to map everything -- active listings, sold listings, open houses, schools, other points of interest," according to the survey.
They also asked for data on foreclosures, recently and past sales, and property details such as tax information and homeowners association costs, among other recommendations.
The report recommends that the most important feature "by far is property search" for public MLS search sites. "The property-search feature needs to be the key focal point of the site."
The group also recommends the overuse of Realtor branding to differentiate the sites from third-party Web sites, to avoid user-registration requirements, and to include auto-e-mail functionality, such as alerts. Also, the group recommends that these sites allow consumers to connect easily with Realtors.
"WAV Group believes that MLS consumer Web sites are a meaningful and relevant tool that can serve the needs of the Realtor by increasing exposure to listings and creating a direct connection with consumers interested in buying and selling homes," the report concludes.
The consulting group, which works with MLSs, Realtor associations, brokerage firms and technology vendors, lists the National Association of Realtors Center for Realtor Technology, MRIS, Fidelity National Information Systems, Threewide Corp. and Rapattoni among its clients.
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Submitted by Heath Coker on March 14, 2008 - 1:27pm.
The 52% support figure is interesting.
Did you poll anyone in the NWMLS who has stopped feeding MLS data to sites like Real tor.com? And in Ohio I think MLS links are restricted. Some parts of the country don't have an MLS, so what will happen there? Then there are the Non-MLS listings agents put on their personal pages. How do consumers become aware of those deals?
Of the almost 3 million licensees in the US on half are a member of any MLS, so what do the others use?
There also could be a breakdown of the years of experience of those who approve and disapprove of a public MLS or MLS links. Less experienced agents may not see the problems as clearly.
And do more exclusive buyer agents than seller agents aprove it (for obvious reasons) and how many of those make up the 52%?
This is a larger and much more compicated topic than this article addresses.
Heath Coker, Broker Owner
CapeGroup.com
REindex.com, The Site Engine(sm) Where Listing agent websites are found - free.
Submitted by Kevin Seney on March 14, 2008 - 5:43pm.
The MLS monopoly would have broken down sooner, probably at the beginning of the dot com revolution, if it were not for the clustered political bureaucracy, which holds it all together, built around local board structures and politics.
When the first MLS systems migrated from the old printed books, to a simple online, dial up, BBS system, "pre web," it actually made sense. It was leagues ahead of the old books, not to mention saving a few trees.
Here is a similar example:
In the USA, we rolled out national Cellular Phone service, earlier than most other nations. But, because we adopted early, we also built a very large system, based on old technology, which has kept us in the past. Witness, third world countries, who had total digital systems, long before the USA, because as "late adopters" they started with totally digital systems and newer technology.
Look at the success of loopnet.com for the commercial industry.
Because the commercial real estate industry did NOT have a formal MLS, the door was wide open for a better solution from the private sector. Look at the simplicity and openness of loopnet.com and because the model is free from local politics, and agendas, the system evolves freely, upgrading and evolving quickly as needs arise.
What should happen, is that the NAR should just abandon the entire MLS and open it up to the private sector. Companies would rapidly provide competing solutions, and the best suited, most evolved solutions would win. The industry would win.
It will happen eventually, so I say "why not now?" What are we waiting for?
I have been working on a project for 7 years now, under the domain USMLS.com that models after the success of www.loopnet.com.
Any tool which facilitates the exchange of up-to-date information, on a standardized platform, available to all, will add to market efficiency.
We need a robust, web based, national MLS system, NOW!
Your comments, are welcome...
Kevin Seney, Founder & CEO
Bug! Realty USA, Inc.
www.bugrealtyblog.com
Submitted by Beth Skinner on March 14, 2008 - 7:35pm.
I figure if my value as a Realtor is tied to the stranglehold I have on the MLS data, what does that say about me or for the future of this business? I like to think my value as a Realtor is tied to the service I provide (aside from access to the MLS). I agree with Kevin, bust up this monopoly!
Submitted by Jerry Hoffman on March 14, 2008 - 8:36pm.
Heath is correct when he says this is a larger and more complicated issue, at least on a nationwide basis. As for a national MLS, real estate is local. The only reason to have a national MLS is for some entity to make money off the efforts of real estate agents. They can sell advertising on their site and sell leads back to agents. Even Realtor.com displays our data poorly and charges us to for enhanced sites. Without our listings, they are nothing. The cell phone industry is interesting, but turning the MLS over to the private sector is pretty naive. Take a look at the costs of cell phone service over the years, the piling on of fees and additional services, etc, etc, ad infinitum. Once again that leaves the private sector to profit from the work of real estate agents. The only way someone can purchase a listed property is to go through a licensed agent. A local, public search site for comsumers run by the local MLS is the most practical method for allowing consumers access to our "clients" listings. Properly presenting data, effeciently and effectively and not trying to rape the wallets of real estate agents everywhere. MLS membership and fees would go the way of gas prices, if left to the whims of the private sector. If your MLS service is so ineffective and archaic, get involved and procur a state of the art system. Then train your membership to do a complete and effective job of marketing their clients property. Even a state of the art system is ineffective if the membership puts in garbage. The private sector is not subject to the state license laws, nor the realtor code of ethics. We as an industry put our clients first - everyone else puts their own economic interests first. The real estate industry whored themselves by at first selling their data, now they feel forced to give up the data for free to sites raking in millions of dollars through the free use of our clients listings. It is time for the real estate industry to take back control of its inventory and put the clients interests before the economic interests of the private sector.
Submitted by Tim Schlosser on March 15, 2008 - 4:00am.
I agree with Beth and Kevin. Clinging to business techniques that were considered sacred in the 1970's (control the data so they have to come to us) is completely inappropriate and just plain stupid. Makes us look like a bunch of old fogies pining about the good old days.
This problem is solving itself through attrition - 30% in Atlanta , according to my cousin - and almost that much here in New Jersey. As the leadership of the local boards and MLS organizations is taken over by people who were born after Eisenhower was President, we will see some real changes.
Customers thrive on information and professionalism which includes use of technology to share that information. Real estate agents who are resisting technology are slowing the process, but like they say "Get on the train or get out of the way"
Submitted by Heath Coker on March 15, 2008 - 12:19pm.
What is the MLS monopoly that Kevin speaks of? FSBOs sell every day, half of the 3 million real estate licensees are not in any MLS. Kevin's new move into real estate from the domain registration business gives him an inexperienced understanding of the problem. Most techies think real estate is easy, because of course, all you have to do is put pictures all over the Internet and people will buy property. The problem is that homes are not like computers, tvs, e-books, or other things that the internet can be used to sell. Each property has a unique location. So unique that one house may have radon and the one next door may be clean. So unique that one may be waterfront with great views and access, and the one across the street has to go 5 miles to the public beach because it has no access to the water in it's neighbor's back yard. And the similar pictures of structures on street "A" don't indicate that house number "x" was completely renovated last year while house number "y" still has it's 20 year old original paint, floors and carpet.
Real estate professionals are not resisting technology as Tim and Kevin exaggerate. And even loopnet will diminish in its usefulness as more and more commercial agents prefer to have their own websites found first. Many commercial investors are already beginning conversations with "I don't want you to call me with anything on LoopNet, I want to know what you have."
Consider this, real estate agents ARE using technology and placing maps, value estimators, pictures, etc. on the pages of their own sites. Why do agents need other companies to screen their customers? The Internet has become Main Street and listing agents just want customers to surf into their online offices without interference. Agents are incorporating new technology into their sites every day, but interference is rampant. See the YouTube: www.YouTube.com/watch?v=Y6aYxzfTa_8 .
MLS is intended for agents to communicate and it is intended to organize information. It is not intended to feed content and advertising to companies that don't list property. It is not intended to supply the content for sites that distract and misinform consumers. Boppo in "Foreign Country A" can make a website that distracts customers from real estate professionals' sites, because the real estate information source has become so diluted/fractured. It is a hobby in some foreign countries.
Just this morning I had a customer I have been working with for a few months tell me a listing was still available because it was "on a site and shown as available". But that site is not updated and the property is actually under agreement in the true MLS. This is the fifth site this customer has been to with information that conflicted with the real listing in MLS. Most real estate surfers are now like first year agents - amazed at all there is to know once you get beyond the pictures.
Helping people buy and sell real estate is actually a business. This is why so many new agents leave the industry - it takes work beyond putting pictures on a website and selling names, phone numbers, and advertising instead of property. I think the techies hope real estate agents fear technology, so the techs always push those sound bites. They also want consumers to think there is a "better" way to buy property because "techies understand technology and agents don't." In fact many techies just want consumers (both agents and non-agents) to be distracted by the technology the techies are actually selling. And, the magazines or news companies perpetuate this by pushing the agendas of the largest advertisers rather than facts and true information.
Nuff said.
Heath Coker, Broker Owner
CapeGroup.com Cape Cod Real Estate
REindex.com, The Site Engine(sm) Listing Agents' Sites
Submitted by Susan Krancer on March 16, 2008 - 7:09am.
I agree with Beth's comment:
"I figure if my value as a Realtor is tied to the stranglehold I have on the MLS data, what does that say about me or for the future of this business? I like to think my value as a Realtor is tied to the service I provide (aside from access to the MLS). I agree with Kevin, bust up this monopoly!"
If I didn't think I was providing a "real" service, I would do something else. I certainly feel that my service provides a significant value to both my buyers and sellers, and I don't think that value is tied to the MLS.
Susan Krancer
Submitted by Jerry Hoffman on March 17, 2008 - 7:13am.
It seems some of you are confusing your function and what you do as an agent with the purpose and function of the MLS. Without an MLS, your jobs would become exponentially more difficult. Knowing your market, the transaction process, how to overcome objections, correcting the consumers misconceptions about what they think they know are all critical services as an agent. As listing agents you need to market your listing to licensed agents and the public. As buyer agents, you need to have an effecient way to find inventory for your clients. This inventory access needs to be reliable, standardized and efficient. As Heath pointed out, the myriad of sites outside the MLS are not current and serve more to confuse rather than provide a service. A single consolidated database is the most effective tool that serves this purpose. That is your MLS. The so called old foggies took you from pre Eisenhower no central data source, all the way through to a 24/7/365 web based system that only falls short when members are to lazy to do a complete and accurate job of entering their clients listing data or search criteria. How easy and effectively could you do your job if you had to post and update your listings on 10, 20 or 100 different sites? Or search those same number of sites to find all the listings that meet your buyers needs? Soon you would stop posting and let the membership find you. Basically devolving to the pre-book, pre Eisenhower days. By the way, these same old foggies brought you a code of ethics (some choose to ignore), standardization within your marketplace and rules for cooperation (getting paid). Some of the old foggies on boards of MLS's and associations can be more self-serving rather than serving the membership and treat the organizations more as a private sandbox. However, without the MLS we would be in the wild west. The MLS is a very effective "tool" that serves the membership and the consumer equally and reliability. No other site displaying our data is bound by the same rules and standard of conduct. The interests of the interlopers is to make a buck off our efforts. These non-real estate entities only want to sell us our own leads, have no interest in our clients or the real estate industry. All they see is a golden goose - particularly in advertising revenue. Think of a surgeon operating without a scalpel - that is what a realtor is without an MLS. I know these so called techies will say that a single system can update hundreds of sites, but why? Why should we provide a sorce of revenue to someone with no interest in our service or clients? Why have 100 sites with the same data instead of one that serves the membership. Remember, the MLS is not a public utility - it is a "membership" service, benefiting members. If non members want to setup something else, go ahead. As a consumer, if I need work done on my vehicle, I can't go into a mechanic's garage and use his tools to work on my own car. If consumbers don't want to negotiate a fee for a real estate agents service, they shouldn't be allowed acces the the agents tools and services. Nobody has a problem with do-it yourselfers, just when they want our services and systems without fair compensation.
Submitted by Duke Lane on March 17, 2008 - 1:09pm.
Surveys are not always "the real deal" when it comes to trends and opinions. HAR's survey was based on 403 responses from the PUBLIC over a six-month period in which they had a million unique visitors each month. 403 out of 6,000,000 is POINT zero-zero-six-seven percent, which is representative of exactly what? The MLS survey cited was based on the responses of fewer than 500 of the 3 million Realtors out there and 67 MLS folks out of over 900 MLSes.
This is not far afield from the under-500 respondents who purportedly represent the technology directions Realtors are taking: 71% of them said they'd participated in fewer than 20 transaction sides the entire preceding year.
These are not people who "know trends" or make decisions, they're people who have time to complete surveys! The ones who are actually DOING the things the surveys purport to represent were too busy doing the things they do to respond.
Es machts nichts. The real answers aren't in surveys.
Submitted by Marvin Corea - OpportunisticInvestment.com on April 8, 2008 - 4:23pm.
The only question I would ask the national non-MLS "MLS" naysayers is: how come loopnet & costar work?
I understand commercial folks are generally more sophisticated, but why not give all the power to search anywhere?
I know one answer, many folks would be outta' work because their "clients" would be contacting the sellers directly.
It's only a matter of time...
Marvin Corea
240-441-5086
I wish this was a national MLS, but it isn't, it's just my slice of deals
Submitted by Richard Soto on July 14, 2008 - 5:49pm.
Loopnet and Costar do work, however the main people being affected are the buyers agents. Those tools are GREAT for the sellers.
In regards to commercial agents being more sophisticated, I assure they are way behind in regards to the internet etc.