The ultimate goal for MLS and CMLS is to make sure that these things are communicated and that people understand how valuable they are. Our concept is “Let’s keep moving forward”. Let’s do the work that needs to be done. Reach out to policymakers and talk. Help them understand what MLS is and how important it is as an engine for the real estate industry. So look for some things like that as you go along this path.
ANDREWS: Obviously, one of the things that’s going on is the implementation of new rules mandated by the antitrust settlement agreed to by the National Association of Realtors (NAR). Do you think it’s dusty?
DiMichel: It’s very difficult to guess something like that. As you say, I think eventually everyone will accept it as a problem that has to be solved, but realistically it’s hard to predict what will happen. There is still a lot of back and forth going on there. My suggestion is that there will be some calming down for some time to come. So what we’re saying is that we come to the realization that everything is where it’s supposed to be and how it’s supposed to be.
Andrews: The recently announced data sharing agreement between MLSs includes overlap for homebuyers and sellers. How do you see these and do you think there will be more to come?
DiMichel: As the world gets smaller and people begin to realize the value of this information and the importance of transparency, data sharing agreements are a natural progression. It’s going to take a little bit of time, but we’re going to see people making decisions like this and moving forward in our market.
This is a natural extension of the concept of duplicate market disorder, where people see listings in their marketplace that aren’t in their database. That makes no sense at all. It’s not efficient. The more you dilute the database, the less efficient it becomes, and consumers don’t really get the benefit of transparency that allows them to make informed and confident decisions.
ANDREWS: The clear Cooperation Policy (CCP), which requires agents to post listings on the MLS within 24 hours of signing a listing agreement, is being challenged by industry giants. What do you think is the value of CCPs for both agents and consumers, and do you think this policy can overcome this challenge?
DiMichele: We want consumers to know the big picture. We want real estate agents to have the knowledge base and data that will help them facilitate transactions on behalf of their clients, their customers, or affiliates.
I’m confused why having different databases is a good thing. If you were buying a house, wouldn’t you want me to provide you with all the relevant data?Let’s go back to the car engine analogy. If you start diluting the gasoline, the engine will eventually start sputtering. So I really struggle with the idea of a segregated listing and lack of transparency. Therefore, I believe that in order to properly serve consumers, MLSs need to be able to do their part. CCP should be something we all respect and desire.
Andrews: Some industry experts say widespread MLS consolidation won’t happen, while others say it absolutely will. How do you see consolidation? Do you think there will be more consolidation? Will it be beneficial for MLS?
DiMichele: As the market grows, there will be natural movement in that space. Certain areas require it. There is still a lot of MLS. People will start to realize that markets are more important. We want to create an efficient market. We want to efficiently provide our members and consumers with the data they need to do their jobs.
To be honest, the market has been depressed for a while now. I think the dream of homeownership is still very much alive, although it is challenged by many factors. It turns out that home ownership is almost considered the fourth pillar of wealth management and retirement planning. This is the first step to wealth, so I think consumers will drive this and all other problems will go away to some extent.
Andrews: Do you think there’s room for new entrants, even national MLSs?
DiMichelle: I don’t really believe in that. Because real estate is local. Having come out into the field as a practitioner, there are things that can be standardized, so to speak, but there are also many local and local issues. There are parts of the country that are very specific in how real estate is actually run, so unless you collect everything locally, you don’t have that expertise or knowledge base.
Data can only go so far. This is important knowledge provided by real estate agents. I think there will probably be regional changes, regional integration, but I don’t see it from a national perspective.
