For the past several decades, the MLS has maintained data quality and efficiency rules that benefit all. We are the unseen engine that powers brokers’ businesses while ultimately serving the best interests of consumers. Yet, as the industry evolves, it becomes clear that not much has changed for the MLS. We highlight consolidations, data-sharing initiatives and new services for subscribers, but the reality is that most MLSs have remained relatively stagnant.
The consequences of stagnation are becoming increasingly evident. Too many MLSs rely on third-party tools to provide their services, and then we see those third parties turn around and eat the MLS’s lunch. Meanwhile, brokers are losing control over client relationships, as teams prioritize mobility over loyalty. And, in their pursuit of profitability, brokers are increasingly sidestepping the core precept of broker cooperation, which may yield short-term gains but carry significant long-term implications for homebuyers, home sellers and the industry.
New external threats have emerged, many in response to our paralysis. What we used to refer to as portals—because they were the access point between consumers and the brokers and MLSs—have seized the opportunity to insert themselves into the agent-consumer relationship, diminishing the broker’s role and creating a direct channel to the consumer. Piling on, the outcomes of the various lawsuits and government pressure loom, threatening the existing business model as well as the industry’s ability to evolve.
Considering these challenges, protecting the past without defining the future is not a sustainable strategy. To chart a more promising path forward, we must consider several crucial steps:
- Let the MLS run a marketplace business for the broker. We are the brokers’ untapped resource.
- MLS leadership should proactively and aggressively embrace innovation and explore ways for the MLS to become a dynamic marketplace that quickly adapts to changing industry dynamics.
- Brokers must commit to cooperation through the MLS—it is critical to ensure a fair, transparent marketplace for homebuyers, and data shows again and again that it delivers better financial results for home sellers. Brokers should stop winking at abuse in their own firms. Doubling down on cooperation will not only enhance the industry’s integrity, but also strengthen brokers’ positions, and solidify waning consumer trust.
- Brokers should insist on immediate MLS engagement across their contiguous markets. Stop waiting for someone to navigate through political molasses. Expanding the reach of MLS services can enhance collaboration and benefit all involved.
- Ensure representatives on association and MLS boards align with your strategic vision.
The MLS is a vital foundation in the real estate industry, and it’s time to harness its full potential. Let’s move beyond the status quo and usher in a new era of collaboration, innovation and adaptability. The MLS is here to serve you, so let’s make the most of it by building a stronger and more resilient industry for the future.
For more information, please visit https://www.brightmls.com.
