The landscape of Multiple Listing Services (MLSs) is undergoing a significant transformation. Traditionally, MLSs have been the central hub for listing input and compliance enforcement. However, with advancements in technology and evolving broker expectations, there’s a shift towards more broker-centric models. This article delves into the emerging paradigm where listing input originates from brokerages who own and are liable for the data. For this to happen, compliance processes must be restructured, and data sharing will be reimagined to happen at data origination rather than database sharing.
The traditional MLS model: Centralized control
Historically, MLSs have maintained centralized control over listing data. Agents and brokers input listings directly into the MLS system, which then serves as the authoritative source for property information. This model ensures uniformity, facilitates cooperation among brokers, and upholds data integrity.
Compliance has been a cornerstone of this system. MLSs enforce rules to maintain listing accuracy, prevent misinformation, and ensure fair practices. Violations can lead to fines or other penalties, reinforcing the importance of adhering to established guidelines.
If a broker is only concerned about one MLS market, then the current system is fine. If the broker is in many markets and has many technology systems that consume the broker’s listing, then the current system is a mess for the broker and for the MLS who is data sharing.
The broker’s perspective: Seeking efficiency and control
Brokers are increasingly seeking greater control over their listing data to support multiple distribution destinations (MLSs and software systems). They desire systems that allow for seamless integration with their internal tools, reducing redundancy and enhancing efficiency. The traditional model, while effective in ensuring data integrity, often imposes limitations that can hinder a broker’s ability to innovate and adapt.
Moreover, brokers are advocating for a model where listing input occurs within their own systems. This approach allows them to manage data more effectively, tailor processes to their specific needs, and streamline operations.
Technological advancements: Enabling new workflows
Technological innovations are facilitating this shift. Platforms like Ocusell provide brokers with tools to input listings once and distribute them across multiple MLSs. These systems offer features such as AI-driven data population, compliance checks, and seamless integration with various platforms. By leveraging such technologies, brokers can maintain control over their data while ensuring compliance with MLS standards.
Ocusell, for instance, offers an enterprise listing solution that empowers real estate professionals to publish listings across one or multiple MLSs using a single point of data entry, streamlining workflows and eliminating redundancies. Their Assurance™ product serves as a business rules engine for verifying listing data compliance, ensuring that listings meet the necessary standards before publication.
Compliance reimagined: From gatekeeper to collaborator
In this new model, the role of MLSs in compliance is evolving. Rather than acting solely as gatekeepers, MLSs are becoming collaborators in the compliance process. By integrating compliance checks into the broker’s listing input systems, issues can be identified and addressed in real-time. This proactive approach reduces errors, enhances data quality, and fosters a more cooperative relationship between MLSs and brokers.
For example, Ocusell’s integration process involves gathering all business rules from MLSs and embedding them directly into their system. This ensures that listings are successfully published to the MLS, error-free. Furthermore, they maintain ongoing collaboration with MLSs to ensure that rules are regularly updated and in alignment with changing requirements.
Data sharing redefined: From replication to integration
Traditional data sharing often involves replicating data across systems, leading to inconsistencies, lag time, and synchronization challenges. The emerging model emphasizes integration, where broker systems and MLSs are interconnected, allowing for real-time data exchange. This approach ensures that all parties have access to the most current information, reduces redundancy, and enhances the overall efficiency of the real estate ecosystem.
The Real Estate Standards Organization (RESO) Update API is instrumental in this transformation. Built on open technology standards, it enables organizations to deliver or receive data quickly and efficiently. By moving away from older data transport methods like RETS, the industry is embracing more standardized and streamlined data exchange processes.
Challenges and considerations
While the shift towards broker-centric models offers numerous benefits, it also presents challenges. Ensuring data integrity across systems requires robust validation mechanisms. MLSs and brokers must collaborate closely to establish clear protocols for data exchange, compliance enforcement, and conflict resolution. Additionally, transitioning to new systems involves training, change management, and potential disruptions to existing workflows.
Furthermore, policy changes, such as those mandated by the National Association of REALTORS® (NAR), necessitate adjustments in MLS operations. For instance, recent policy updates eliminate and prohibit any requirement of offers of compensation on an MLS between listing brokers or sellers to buyer brokers or other buyer representatives. MLSs are also required to eliminate all broker compensation fields and information, reinforcing the need for systems that can adapt to evolving regulations. But brokers may still offer seller concessions and need to manage that data accordingly. Today it’s a separate system that requires a match/append to the data returned from the MLS, or the add/edit on the front end that collects data that is not contributed to the MLS.
The path forward: Collaboration and innovation
The future of MLSs lies in embracing collaboration and innovation. By partnering with brokers and leveraging advanced technologies, MLSs can redefine their roles, enhance service offerings, and remain integral to the real estate industry. This evolution requires a cultural shift, openness to change, and a commitment to continuous improvement.
As the industry moves towards more integrated and broker-centric models, stakeholders must work together to establish standards, share best practices, and develop solutions that benefit all parties involved. Through collaboration and innovation, the real estate ecosystem can achieve greater efficiency, transparency, and value for consumers.
The transformation of MLSs from centralized gatekeepers to collaborative partners reflects the broader evolution of the real estate industry. By embracing broker-centric models, integrating advanced technologies, and reimagining compliance and data sharing, MLSs can continue to play a vital role in facilitating successful real estate transactions.
MLS Markets Embracing this Change
- Bright MLS: They have had Keystone (or whatever they call it) add/edit separate from their MLS system for as long as I can remember.
- Georgia MLS [FMLS]: They have had stand alone add/edit for decades.
- Northstar MLSs: They used the same Bridge solution active in Georgia until that company was sold to Zillow – they built one and I think that they have included that in CRMLS’s resource center.
- Hive MLS
- OneKey® MLS (click here to read a recent article.)
I would estimate that there are probably 40 markets that are in some stage of moving in this direction. Sorry if you are already on the list and I do not already know about it.
The one broker who is the furthest ahead is Ben Caballero of HomesUSA. He has been feeding listings into his MLS markets for years across Texas.
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