Most people think of a Multiple Listing Service (MLS) as a utility – a shared resource that supports cooperation among brokerages and delivers access to the market. But for the companies and REALTOR® associations that own MLSs, these organizations represent something more: an equity investment.
And like any equity investment, it’s time owners started evaluating their stake through a financial lens.
Across the country, there’s wide variation in how MLSs are owned and governed. Some are wholly owned by a single REALTOR® association. Others are consortiums, jointly owned by a coalition of associations. About two dozen are shareholder-owned corporations, and a small but growing number are privately held. Governance structures are equally diverse – from broker-controlled boards to association-appointed representatives to fully independent governance.
But in every case, there’s one unifying truth: shareholders hold equity. And that equity has value.
Most MLS shareholders don’t know what their equity is worth
Until recently, MLS owners – whether associations or private shareholders – rarely had a basis to understand the market value of their equity. That’s beginning to change. WAV Group has been conducting valuations of MLSs across the country, providing boards and shareholders with clearer insight into their investment.
Knowing the equity value of an MLS is more than an accounting exercise. It informs decisions around dividend policies, capital reserves, strategic investments, and governance priorities. It also sheds light on a question few MLSs have historically addressed: what kind of return should shareholders reasonably expect?
Dividend performance is uneven – and often opaque
In some markets, MLSs operate with substantial cash reserves but distribute no dividends. Others provide modest or below-market payouts. And a select few issue healthy, well-documented returns to shareholders.
The disparity is striking – and it’s rarely tied to performance alone. In many cases, outdated governance models or lack of financial transparency prevents MLSs from treating shareholder equity with the same discipline found in other sectors.
As a shareholder – whether you’re a REALTOR® association or a private entity – you have every right to expect an annual valuation of your shares. That should be accompanied by standard reporting: a balance sheet, profit and loss statement, and forecast budget. You should also expect clarity on dividend strategy and equity growth expectations, especially if your ownership stake is a meaningful asset to your organization.
Ownership without valuation is a missed opportunity
If your organization owns shares in an MLS, consider how you manage other investments. Would you continue to hold equity in a company without knowing its current value or having a say in its dividend performance? Would your board accept that level of opacity from a private sector partner?
The same financial standards that apply to other business interests should apply here too.
Let’s talk about unlocking shareholder value
WAV Group is now offering comprehensive MLS valuations to help organizations understand the real value of their stake. These assessments provide shareholders with the financial clarity they need to make informed decisions – about governance, investment, and growth.
If you’re a REALTOR® association, brokerage, or shareholder in an MLS, we invite you to start a conversation. Understanding your equity is the first step to maximizing it.
Reach out below to get in touch with Victor Lund, Marilyn Wilson, or George Slusser at WAV Group to schedule a confidential consultation about an MLS valuation.
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