There’s a growing movement across the country – REALTOR® Associations and MLSs are pursuing formal valuations of their organizations. 

Why Now? All Eyes on REcolorado

The recent sale of REcolorado to a private individual has served as a wake-up call. It demonstrated that MLSs are not just service providers. They are equity-rich businesses. For the first time, many Association leaders are realizing they may be sitting on a multi-million-dollar asset without a clear understanding of its market worth.

That realization is sparking a surge in valuation activity. Organizations want to be proactive, not reactive—especially in an environment where legal, financial, and membership pressures are escalating.

Couple the growing interest in MLS acquisitions with the seemingly incessant legal challenges facing our industry, some Associations are looking at selling off their MLS as a risk mitigation strategy. 

WAV Group, the leading provider of MLS Valuations, after conducting a plethora of valuations has observed there are 5 key reasons why MLSs and their Association shareholders are securing valuations. Leveraging 30+ years of experience with real estate valuations and mergers and acquisitions, our proprietary organizational analysis processes have uncovered 5 key paths are considering:

  • Financial Best Practice – Know the True Value of Your MLS Asset
    Just as Associations track the market value of buildings or property they own, a formal valuation of the MLS provides critical insight into one of their largest assets. It’s a responsible move for boards that want to practice solid financial governance and understand the full balance sheet of their enterprise.
  • Sell the MLS Outright – A Strategic Exit or Risk Mitigation Move
    In smaller or mid-size markets, some Associations are considering a sale of their MLS outright. A formal valuation provides the confidence to negotiate from an informed position, ensuring a fair price. The proceeds from a sale can shore up Association value propositions by building capital reserves, expanding educational offerings, hiring national speakers to attract members, improving advocacy effectiveness, deepening member engagement and more. 

Some Associations are considering a sale to mitigate the risks associated with MLS Rules and Regulations. Before selling off an important and profitable asset like the MLS, there are lots of other steps that Associations can take to mitigate risk and to more cleanly separate the MLS from the Association. 

  • Growth by Selling Shares to Neighboring Associations – An Alternative to Mergers
    Rather than pursuing full-scale mergers, some MLSs are considering using their valuations to sell ownership shares to neighboring Associations. This approach can create regional business partnerships where all organizations have a financial stake in the game. By creating a larger MLS, the value of the MLS entity can grow exponentially, and the services provided can be more significant and meaningful to subscribers. Creating a regional MLS can allow the MLS entity to scale technology, service, and support while freeing up Association Executives to focus on their core mission of helping create a foundation that enables real estate success for members.
  • Borrow Against the Value to Acquire Other MLSs
    Having a professional valuation in hand allows MLSs to borrow against their own equity, making it possible to finance expansion into adjacent markets, or even markets across the country.
  • Leverage MLS Value to Invest in the Future
    With AI, predictive analytics, and custom software now critical to long-term competitiveness, some MLSs are seeking funding to invest in their next phase of innovation. A valuation creates a pathway to secure capital, enabling strategic investments in technology, data, or even the acquisition of software companies.

Valuing your MLS isn’t just about preparing for a sale—it’s about preparing for the future. Whether your organization is exploring partnerships, investments, or simply trying to better understand its own financial footing, now is the time to act. MLSs are more than data, software, training and support. They are capital assets. Forward-thinking MLSs.

If you would like to better understand the value of your MLS asset, we’re here to help. Please fill out the attached form so we can learn more about your needs. 

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