Above, Amit Kulkarni and Russ Cofano
This past November, when the National Association of Realtors® (NAR) repealed the rule linking MLS access to Realtor® membership—bringing an end to a structure that shaped local policy and revenue for decades—Realtor® associations and MLSs were forced to navigate a new world with no clear roadmap for moving forward.
Officially delegating rules on MLS access requirements to local MLSs since 1994 (with policies differing widely across the country), NAR said it was “reinforcing” its decision that Realtor® association membership as a prerequisite to MLS participation is a matter of local distinction—leaving Realtor® associations and MLSs to shoulder the weight of setting their own access policies without the protection of a national standard.
Stepping up to the plate to define a path forward with the launch of the Non-Realtor MLS Access & Revenue Stability Playbook, industry veterans Russ Cofano and Amit Kulkarni—co-founders of Alloy Advisors—have partnered with Phoenix Realtors® CEO Andy Fegley to provide what they believe is responsible leadership in an environment where NAR has stepped back.
Designed to help local associations and MLSs make sound decisions on MLS access while developing revenue models that don’t depend solely on mandatory NAR membership, the Non-Realtor MLS Playbook is a consultant-led, working engagement designed to work with MLS and association leadership teams to not only design MLS access policies and manage risk, but to also build sustainable revenue models.
A former CEO of a state Realtor® association, Cofano notes that one of the things he took away from that experience is the fact that there are a lot of members who believe that belonging to the real estate association and the inevitable three-way agreement—state, local, national—is a tax on doing business.
“And there are those, and we’ve seen a lot of surveys and what’s going on today, that would maybe want a choice,” he added. “And I always looked at our association and would have relished having a voluntary Realtor® membership because I think as any organization, if you start off on the relationship that you must buy the product, you’re starting a couple steps backwards.
“And, as we’ve learned, choice is a foundational element of a strong industry.”
“We want to help this industry do good,” added Kulkarni, pointing to his and Cofano’s nearly 60 years of combined expertise in the business as a unique advantage.
“There are a lot of reasons that this idea has legs,” said Kulkarni. “I think if we can provide our expertise and employ our combined years in the business to help people in this industry make good decisions for their business in a way that supports the health of this industry, a better consumer experience and ultimately facilitate strong choices for other paying subscribers and members, I think that’s what we want to accomplish.”
Specifically designed for local association/MLS leadership who understand the need for clarity, structure and a path they can defend, the Non-Realtor MLS Playbook consists of six modules—each of which is delivered through facilitated working sessions and guided analysis. The consultant-led process builds toward a documented, defensible and financially stable non-Realtor® MLS access policy, according to Cofano and Kulkarni.
Fegley’s Phoenix association serves as a real-world example of how a major association successfully implemented a non-member MLS access product.
While leadership wanted to give brokers and agents more flexibility; make it clear that MLS access and Realtor® membership are not the same thing; and build a solution that was principled, transparent and sustainable, Phoenix worked with legal counsel to rework a legacy MLS-only concept into a modern, productized non-member MLS access offering.
Today, Phoenix positions non-member MLS access as an alternative offering for brokers to consider.
“We have created what we think is a really valuable approach to a guided, sequenced evaluation discussion that involves legal counsel to look at all of the elements of non-Realtor® access and determine at the local level whether it makes sense,” said Cofano.
“We’re not saying that every association and MLS should do this,” he added. “That’s not what we’re saying. What we’re saying is that every association and MLS should have a discussion at the leadership level of whether this is appropriate for their local market.”
“Everyone should be having that discussion, because even doing nothing is a choice,” echoed Kulkarni. “There are consequences and ramifications of doing nothing, so I think understanding what those are (is) critical so you can make the best, most informed choice on what’s best for your association and its local market.”
Guiding organizations through each decision, step by step, the playbook is more than a document that’s simply handed off to implement on one’s own.
“One of the key components here is that this isn’t a book or a pamphlet we just give to somebody and walk away and say, ‘Hey, have fun guys.’ We are literally going to be there step by step, holding hands, making sure that the decisions are defensible, they make a lot of sense for the business, and that everybody’s aligned with the choices that are made so that it’s the best decision for the association, MLS and the local market,” explained Kulkarni.
Providing a clear path for associations to move forward with confidence, Cofano and Kulkarni are doubling down on their commitment to help real estate organizations such as brokerages, MLSs, associations, proptech companies and portals grow in an era of industry disruption.
“Let’s all make this industry better for everyone in it,” concluded Kulkarni.
For more information, visit https://alloy-advisors.com/mlsplaybook.
