Market Report - Data resellers would like to get MLS data directly

Vendors would like direct MLS access to get correct and up to date listing info.

Is this good or bad for business? For home sellers? For consumers?

"About six months ago MLS North Carolina Mountains entered into an agreement to with a vendor to clarify data. It turns out that, from the standpoint of quality, this could be a very wise move."  From a position of having proprietary rights, it could be another story indeed. 

"This agreement provides RETS access to some fields in our MLS database. The vendor agreed to use the data as the primary source of listing information, superseded only by contractual agreements that they had previously established with a few national franchisors. In return, we receive daily and monthly Excel files displaying two important pieces of information:

• Each MLS number where the selling price or property status is more than four days older than what we provide via RETS.

• Importantly, we are also given the source(s) of the stale data (as well as other pertinent data)."

NOTE:  This provides the opportunity for vendors to open the door to accessing all the data.  It sets a precedent that will ultimately make exclusive agency an endangered specie. 

"Using this information, they were able to zero in on those firms that did not update their data on a timely basis. This generally means that not only obsolete data was being sent out to us (and others), the sender's own site was suffering with the same problem."

So now instead of correcting the problem in a cooperative manner among real estate professionals it becomes laundry to be aired publicly by and against realtors and non-licensed real estate interests.  By "zeroing in" there is a target for all our frustrations with the MLS.  And since we've not succeeded in getting the MLS to correct the problem we can vent on other real estate agencies. 

Why not have a cooperative effort among real estate offices and companies?  Working with the various MLS around the country?  So we solve our own challenges and keep our laundry home.

And what does the vendor get and provide in return?  Besides access to the homeowner's private information realtors are licensed and bonded to protect?  Besides setting a precedent for unfettered access to that private information?

• "Each MLS number where the selling price or property status is more than four days older than what we provide the vendor via RETS.

• Importantly, we are also given the source(s) of the stale data (as well as other pertinent data)."

Having the source(s) of the "stale data" allows anyone the opportunity to call them out on it.  Think there may be legal battles over this?  Hey, as long as it's among the realtors and their offices the vendor wont be affected.  The vendor isn't held to the same legal standards as the realtor and real estate offices.  Hmmm.

Continuing with his disclosure: 

"In our case, the firms providing old data included a wide variety of companies including traditional real estate magazines, virtual tour companies, syndicators and real estate franchisors.

Using the vendor's information, we learned that about 3 percent of our data being provided by other sources to the vendor was obsolete. We were not happy."

Apparently it's too much work to correct it internally.

"We later learned from the vendor that most MLSs have a defect rate of over 10 percent. Our entire industry should not be happy about that." 

"In reviewing our data more carefully, we quickly discovered that four companies generated well over 65 percent of the errors, with one of them providing almost 35 percent of them."

That's 65%  OF THE TEN PERCENT.  In his market.  A small segment of the East Coast.

"We opened discussions with our primary data offender and convinced them to radically change their approach to data collection (at least in our market). We gave them direct RETS access too, and lo and behold their defect rate is approaching zero and our overall defect rate has dropped to about 1.5 percent. We are in the process of working with the others to get our defect rate down to zero."

By opening the gates on the information of private citizens, homeowners, that entrust certain groups with select information.  That some real estate companies are giving out indiscriminately, without consensus among other real estate professionals.

They continue to endorse their vendor. 

"This would not have been possible without the overt actions made by the vendor. It is very clear that the quality of the data they present (and gain proprietary rights) to the public is of utmost concern to them. And for that, we applaud their efforts. We also applaud the efforts of our data recipient in their willingness to improve their systems to the benefit of our mutual customers.

While one can argue the merit of supplying third parties with MLS data, from our standpoint, there is no argument that the data should be sent to 'select vendors' directly. By doing so, they help us help others who receive our data so the public is served in the best possible way: with accuracy and timeliness."

And make the private information of our citizens, homeowners, more accessible to unlicensed and poorly-regulated vendors.  It is with great chagrin that this information needs to be shared with our real estate community.  Because there are those among us seeking favor with powerful vendors, offering up our most sacred trust as chattel. 

Want better information?  Use the MLS as it was designed.  By and for realtors.  Not as a conduit for vendors to access our sacred trust.