Challenges and Obstacles

The survey received 451 responses, yielding a response rate of 16%. According to the survey, the greatest challenges surrounding consolidation are related to: 

• Governance
• Ownership
• Financial issues

The smaller the association or MLS, the greater the challenges in all areas. Many of the respondents have serious reservations about MLS consolidation, including loss of control of MLS finances, loss of income, lack of representation for their members, the inability to pay for current staff, and duplication of services. REALTOR® Associations in particular are also concerned about the ability to create a structure that is responsive to local broker needs, as well as about MLS rules enforcement and development. 

Moreover, a number of respondents point out that geography and distance play a strong role in deciding against consolidation, since their members do not want other REALTORS® participating in their MLS who do not understand the local market. According to the survey, the most beneficial resources needed for dealing with the challenges of MLS consolidation are: 

• Information about the variety of consolidation options.
• Case studies of successful consolidation or partnership efforts.
• Financial assistance/grants to help with vendor buyouts or other consolidation costs. 

This page focuses on the biggest challenges to MLS consolidation and the recommended solutions. The analysis builds on the 2017 NAR MLS Consolidation Survey and leverages real-world experience of consultants.

To consolidate generally means to make something physically stronger or more solid and to combine a few things into a single more effective or coherent whole. In the MLS industry, consolidation means di erent things to different people. It comes in many flavors, including the consolidation of information (listings, photos, rosters), MLS systems and software, the MLS organization itself (e.g. a regional MLS where associations work together to create a bigger and better MLS structure and service), technology and decision-making. What it doesn’t mean is hostile takeovers with winners and losers.

From the broker/agent perspective, MLS consolidation is about making it easier for brokers and agents to conduct business, remain relevant and make money. That means that they are interested in having ALL the information available to them in the markets in which they choose to work. They also demand professional-grade tools (better than what consumers have) for a one single fee... one-stop shopping.

In contrast, brokers and agents don’t want to be forced to use multiple/different systems, be required to abide by inconsistent rules and practices, pay duplicate fees, enter the same information into multiple systems including consumer feeds of new listings coming from separate systems. They do not want to access many different sources of information e.g. MLSs, RPR®, realtor.com®, etc. The brokers, agents and appraisers are looking for efficiency and the current landscape in many areas is very inefficient. They are licensed to list and sell in their state(s) and yet they are required to work with many disparate MLS databases and organizations. Many brokers and agents are forced to use antiquated software. These are the main drivers behind MLS consolidation. It is what the brokers, agents, and others in the industry are demanding be reformed in the face of many challenges. 

Primary Obstacles

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Take Away

The primary goal of MLS consolidation is to deliver high-value products and services to brokers and subscribers and make it easier for them to conduct business, remain relevant and be successful. As your customers, they are interested in having ALL the information that is available in the markets in which they choose to work, along with professional-grade tools that are better than what consumers have as well as relief from paying multiple fees and using different systems. They are looking for efficiency in the marketplace and that starts with efficiency in the delivery of MLS. 

These are your paying customers who are licensed to list and sell in your state (or states) and they don’t want to have to deal with so many separate MLS databases and organizations, each with dissimilar practices, rules and duplicate fees. That is the main driver for MLS consolidation. It is what many of your members, brokers, agents are demanding right now.

Here is what your members want: 

• Brokers and agents – REALTORS® and non-REALTORS® want at least as much information as consumers have, to enable them to do their job and make a living.
• Complete, accurate, and timely data and the best software and tools available from any sources.
• Significant value and low-costs for the most part.
• Choices.
• MLS services which are without borders with unrestricted information access for the professionals.
• No longer necessary to join and pay multiple MLS providers.
• One standard set of MLS rules, policies, data compliance, and enforcement.
• Single source listing feeds for IDX, websites, and back-office that follow uniform formats and rules.
• Single point of entry available for those who need it.
• On-demand access to the information they need to conduct business at a competitive cost.
• Accurate and consistent statistical information and reporting.
• MLS software which does not require extensive training to learn how to use it.
• Listing brokers control the distribution of their listings from a single source of their choice.
• Every market area is served by at least one high-quality MLS provider with multiple choices where possible. 

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Developed on behalf of the National Association of REALTORS® by T3 Sixty.