Mert's MLSNI post

[kensmith]

I had written this yesterday afternoon then my internet went down so some of it's a little behind. Will post more about the current discussion later.

Now after reading this thread a few times as there are some issues that are very important I have to agree with Matt on most points. The reason is anything that helps the big boys is not good for the consumer.

If a policy makes it more likely that consumers will call listing agents and not get full representation it isn't a good policy for the consumer.

If a policy will help those with deep pockets take more market share it isn't a good policy as it reduces competition and that always drives up prices or reduces quality. Quick example, sure Walmart sells cheap stuff, but do you think it has quality stuff?

If a policy allows middle men to step into the process easier it isn't good for the consumer. No consumer will agree that a middle man (lead generator) stepping in and adding costs to the transaction is a good thing. Those that use these services just don't understand what they are.

Anyways basically without being involved with the technical end of any of this and looking at it purely from a consumer standpoint the login requirements are good for the consumer. They actually help keep the consumers costs lower and keep competition high.

BTW, I don't think that Jim was thinking this was a advertising thread, just wanted to know why Matt likes his forum better than the other one.

[ChicagoDrew]

So IDX has less of the listings than VOW. Also what is MLSNI policy on free no registration to view property through an IDX?

[MattL]

Originally Posted by ChicagoDrew So IDX has less of the listings than VOW. Also what is MLSNI policy on free no registration to view property through an IDX?

IDX allows multiple layers of opt-out (blanket & targeted), so there are a fair number of listings (particularly if you're downtown) that are only in the VOW feed. MLSNI, from my impression, is simply pro-VOW -- it is the most equitable way of showing listings online without disrupting the status quo of business, particularly with respect to buyers agency.

-Matt

[kensmith]

Kind of off topic, but was talking about this with a broker the other day. Thought it might be of interest.

The biggest future risk with IDX IMO is that at any point and time a big broker or two can decide to remove all of their listings. You could spend a lot of money and time developing a great custom IDX system just to end up with a worthless tool as there won't be enough listings to make it worthwhile.

We all know how some of the big brokerages have played their cards in the past with the MLSNI and Map issues. They have no issue with pulling listings, even if it's bad for their clients, to make a point. If they don't like the direction MLSNI goes with the IDX at some point you can count on them blocking all of their listings.

[MattL]

Originally Posted by kensmith We all know how some of the big brokerages have played their cards in the past with the MLSNI and Map issues. They have no issue with pulling listings, even if it's bad for their clients, to make a point. If they don't like the direction MLSNI goes with the IDX at some point you can count on them blocking all of their listings.

Fortunately, there are two things working in "our" favor with respect to this behavior

First, the DoJ has absolutely crucified the practice and NAR wouldn't dare include it in any future policy.

Second, while the MAPMLS defection proved that big, regional brokerages aren't afraid of making statements, their return (and the ongoing MAP merger) proves that they can't live outside of the largest MLS in the country (second-largest by some measures) and maintain the same level of business.

-Matt

[kensmith]

I think that with the merger that is going to change the power structure that some interesting things will happen. These brokers are power hungry and as the market is slower they will try to figure out ways to control more of the market. Ones that are using a VOW can pull their data and use it to their advantage in advertising.

Pulling the data from IDX won't hurt these brokers like pulling from MLSNI. Their listings will still get sold. It will just hurt the little guys IMO.

Hope that it never comes to this, but when it was presented as a option for the big players it struck me a very interesting.

[MattL]

Originally Posted by kensmith Pulling the data from IDX won't hurt these brokers like pulling from MLSNI. Their listings will still get sold. It will just hurt the little guys IMO.

Well, most importantly, the IDX policy is going away at the national level and VOW will stick around (as long as MLSNI maintains a policy). The only remaining alternative would be RETS, but that has such a prohibitive entry level that I doubt they'd be able to keep that as the only policy.

-Matt

[Mert]

Originally Posted by MattL The only remaining alternative would be RETS, but that has such a prohibitive entry level that I doubt they'd be able to keep that as the only policy.

#1 Was really nice to put a face to the message today Matt.
#2 RETS does suck. It was the nightmare that made me put a blog on in the first place.

[MattL]

It was good to meet you, too, Mert. It actually got me thinking that perhaps we (PMPVOWs) should have an invitation-only roundtable with the strongest Internet players once every six months or so just to talk shop. It's a small enough group, and most of us know one another in passing (online) anyway, so why not put faces to the screennames, have some food, and figure out how to keep small Internet brokers as strong as the big guys. What do you guys think?

-Matt

Interesting post by Mert but the following questions should be thought of when responding:

What was the original intention of the Associations that eventually led to the creation of MLS systems to begin with? (Long before anybody even heard of the internet and for some reason this is never thought of which is an obvious failure of the association in educating their members.)

Is the manipulation of the information (from the MLS) really intended to benefit the consumer, client, or the company providing the manipulated data? (Really now, are companies spending significant amounts of money manipulating the MLS for the benefit of the consumer or for their pocketbooks? Last time I checked, I could not find any brokerages created as a non-profit organization.)

Where does it end if there are no rules in place concerning the manipulation of the MLS because in reality that is what is really going on. Why don't we just charge users for our MLS login passwords? There's an idea!

Interestingly, are brokerages required to educate/inform their clients of their non participation in the IDX? (We all know that brokerages subscribing to an MLS have to have written authorization from the sellers requesting their home be withheld from the MLS for obvious reasons.)

Where does it really end concerning the manipulation of the IDX? Without rules in place, Larger brokerages obviously would have the means to provide an unfair advantage which in the long run drives up prices when there is lack of competition and that is the whole orginal intention of the formation of Associations and the MLS to begin with: To promote consumers choice.

A better question is why don't associations mandate and provide the use of a standard IDX that is not allowed to be manipulated? Is that not what the whole intention of the creation of associations and the MLS was originally intended for? (Which really did benefit the consumer by allowing choices in service.)

Think back before the internet. A small independent brokerage could provide everything that a large brokerage could. Now think about today -- can the large brokerage provide a better IDX if they have the money and means to do so? Of course they can and the ironic part is that the information to feed that system is coming from a system originally designed to level the playing field.

Without rules and regulations concerning the manipulation of the MLS, we all just might as well affiliate with one company and in the long run that will harm the consumer.

Really now, is the manipulation of the MLS by a company in their IDX feed really for the benefit of the consumer or to gain an advantage of other members in their association?