All eyes are on MLSs as they seek to reinvent themselves

“You have to constantly articulate your value and reinforce it because people that are just getting into the business don’t have that historical perspective,” Dwiggins said. “I remember when my parents would get an MLS once a month and they would be so excited to find out what was for sale, but even then, some of those properties were no longer available because they were already sold. We’ve come a long way since then.”

With the business practice changes having been implemented a few months ago, MLS leaders believe it is time to return the focus on helping brokers and agents solve everyday pain points.

“We have to recognize that people are cranky,” Wilson said. “One of the things I would suggest you do is to start with the broker. Brokers are the ones dealing with the agents and the consumers and all their problems while trying to keep themselves calm, while handing over millions of dollars as part of a settlement and figuring out how to sell real estate in today’s market. Start with them and understand what they are most challenged with, and make them your partner.”

Additionally, many in the MLS space believe it is time for the platforms themselves to evolve. This could mean that more MLSs will sign data sharing agreements, ensuring that data is comparable and compatible across different companies. They may also need to embrace new technology.

“Everyone has been so head down and focused on implementing the business practice changes, and now we are a little tired, but we got through it,” said Denee Evans, CEO of the Council of MLSs (CMLS).

“But now I’m hearing so many executives say they are finally looking up and saying, ‘Let’s get back to the business of growing, evolving and running our MLS,’ and there are a lot of things we need to do.“

Evans said she has been concerned that so many in the industry were “not looking where the puck is going” and planning for future. Now that the industry is past the initial phase of implementing the business practice changes, she believes that will change.

Data sharing solutions

One way in which many MLS executives are looking to evolve is through data sharing agreements.

“MLS organizations that do data sharing told us that they do it because their customers’ borders are different than their borders, and their brokers sometimes are in multiple markets and multiple states, and both consumers and agents want access to better information,” said Sam DeBord, CEO of the Real Estate Standards Organization (RESO).

“They want access to the information they can get from outside technology organizations, but they want to get it directly from their MLS organization.”

These agreements can also help MLSs clean up their existing data, said Michael Wurzer, CEO of Financial Business Systems.

“One of the easiest problems to solve with a data share is for overlapping MLSs where you may have duplicate membership and duplicate listing entries,” Wurzer said. “Sometimes you see where there is an overlap in some markets and you change the price in one MLS but not in another, then the portals don’t know what the list price is. These are real problems that are relatively easy to solve with data sharing.”

Brad Bjelke, CEO of UtahRealEstate.com, also believes MLSs need to be more open to sharing at least some of their data with entities outside the MLS and brokerage space.

“I think a cooperative approach with some of the entities trying to solve big problems like affordable housing is the right way to do things,” Bjelke said. “The mindset across the country is that we can’t share our data or make our data available, and I think that has to change.

“I think there are certain parts of our database that are confidential and private, but there are other pieces that can help solve big problems. And I think it’s time to be a good partner, not just with your brokers and agents, but with other organizations in your communities to help make some change.”

In order to share data, MLSs need to ensure that it is compatible and comparable. While comparing datasets and displays are a good way to see if MLSs are compatible for sharing purposes, DeBord also believes this is a great way for MLSs to gain insights into other types of data they could provide to agents.

As the MLSs begin to look to the future and better serve brokers through added value, Dwiggins believes that different datasets are a great place to start.

“The MLS has been a utility,” Dwiggins said. “I think there is a tremendous opportunity for the MLS to shift. As an example, we should have a buy-side MLS — it shouldn’t just be listings. What about a reverse prospecting system, where you can find out what a buyer is looking for to see if you have a listing that matches? What about creating a database of every single active buyer who is working with an agent, so if you are getting leads, you can immediately check to see if they are worth pursuing or if the buyer is already working with someone else?

“There are tons of opportunities that we could explore as an industry to reinvent the MLS, so that the broker and agent go, ‘I can’t do business without this service.’ We have to reinvent the MLS to be something bigger.”