A Shared Commitment and Vision
The MLS: Evolved
Tom Phillips, TREND
Ken Schneider, TREND
Background
September 2015 – TREND/MRIS announce plans to
form new regional MLS organization
• Outlined a vision on how to better serve brokers and agents
• Invited neighboring organizations who shared vision to participate
October 2015 – Informational meeting with
neighboring organizations
January 2016 – 10 Organizations in region begin
discussions to explore opportunities
What is driving MLS consolidation?
Brokerage Firms
Consumer access to Information
Rapid pace of Technology
Arbitrary Boundaries
Industry Seeking Solutions
Current Industry Initiatives
Upstream
AMP™
RPR
Broker
Portal
Project
RESO
Overlapping Markets
Duplicate listings
Duplicate searching
Duplicate fees
Duplicate data feeds
Third parties empowered
Real Estate Professionals hindered
RAYAC Market Overlap
Three firms have 43% market share - cross multiple MLSs
Largest 10 firms all belong to more than 1 MLS
8.3% (or more) of subscribers belong to multiple MLSs
56% duplication in listing entry
Unnecessary fees and cost of duplicate entry
Confusion among real estate consumers
New York
Allentown, Bethlehem, Easton PA
Reading, PA
Harrisburg, PA
York, PA
Philadelphia
Atlantic City, NJ
Baltimore
Washington
The Vision
“To create the next era of MLS that
preserves compensation and
cooperation, promotes the expansion of
an orderly and efficient marketplace,
and provides participating brokerage
firms greater control of and access to
their listing content.”
The Plan
Create New MLS Organization
Composed of like-minded Organizations
Working together to transform the Model of MLS
Recapturing the Faith of Constituents
Pioneering Innovative solutions
The Opportunity
Expanded real estate marketplace
70,000+ agents
6 states plus DC
Population of almost 17,000,000
7,000,000 on and off market listings
10,000,000 property parcels
Enhanced agent technology
Engaged brokerage community
The Value of MLS
Orderly
Marketplace
Comprehensive
Data
Cooperation
and
Compensation
Efficient for
Buyers and
Sellers
The Value of REALTOR Association
Critical to the
Industry
Advocacy
Education
Professional
Standards
Information
Resource
Lockboxes
Subscriber Benefits
Access to a
Broader
Marketplace
Facilitates
common
practices
More intuitive
Product & Service
Offerings
Reduced fees for
better Integration
of MLS tools and
data
Product Choices
Additional
Support
Opportunities
Subscriber Benefits
The Product, Service, and Price Choices
The Basic Service
Upgraded Products and Services
• Options
• Potential premium products
Localization
• Customization: Local data sets; market customs
and differentiating factors based on county, state
or laws
• Benefit: Part of a larger organization with the
ability to serve a local marketplace
Subscriber Benefits
Basic Service
MLS searching across broad geography
Rich and highly integrated assessor/public record data
Mortgage, foreclosure, community, school, and flood data
Robust mapping functionality
Appointment Management tools
Drive time and lifestyle searching
Predictive analytics
Locally tailored closing costs
Subscriber Benefits
Technology: Needed Innovation
Intuitive
Interactive
Choice
Responsive
Mobile
Subscriber Benefits
Support
Account Executives
• Office visits/training
• Assigned to local area
• Membership meetings
Helpdesk
• 7 Days/week – answer all questions
• Phone, chat, email, and online
• All subjects and issues captured
Subscriber Input
Brokerage Firm Benefits
Eliminate
Redundant
Technology
Costs
Access to a
Broader
Market Area
Consistent MLS
Rules and
Polices
Benefits of the
Increased
Buying Power
REALTOR® Association Benefits
Ability to Influence
and Participate in
the Formation
Owners of the New
Organization
Tangible Benefits,
as Determined
Through the
Governance
Structure
Current Phase: Create Structure to Proceed
Define Governance and Ownership Structure
Determine how to Capitalize
Define base level products and services
Determine Pricing for New Organization
Determine technology
Create transition plans
Each organization decides
Next Phase: New Organization Created,
Founding Members Sign
Legal
Documents
Completed
Customized
Transition Plans
Finalized for
Each
Organization
Integration
Efforts Begin
Final Phase: Implementation (6-36 Months)
Implementations
Begin
New Technology
Delivered
The potential impact of a Stronger, Better
MLS Organization?
Positions all stakeholders to better compete
Leaders of the MLS industry
Provides strength in numbers
Includes the best practices of each organization
Provides more advanced technology
Delivers unparalleled value to Brokers and Agents
Increases control and legal clout
What’s Next???
You Decide…
Buckminster Fuller Quote
“You never
change things by fighting the
existing reality. To change something, build
a new model that makes the existing
model obsolete.”
- Buckminster Fuller
Thank you!
[email protected]
[email protected]