NAR/DOJ settlement: Much ado about nothing ?

Seems that the Economy and the Political scene in this hot election year has caused the DOJ to re-think their approach on the battle with the National Association of Realtors. The case was settled this week or rather it appears that the DOJ gave up, because they did not want to seem unsympathetic to the plight of the industry as a whole, given the political climate et all in the U.S. right now.

The reason I and others say gave up is because, we do not think that the DOJ went far enough into really scrutinizing the MLS control issues.

One thing they did do was help free up the hold on VOWs, and that in it self may not have been a good thing depending on how you view the situation.

So what is a VOW anyway ? A VOW is basically a Virtual Office. One description I have often heard is in reference to the difference between an IDX platform and a VOW. VOWS differ from IDX by essentially taking the IDX platform at least one step further.” VOWS are “private business platforms that are designed to facilitate actual transactions” by registering consumers and delivering them as leads to other companies and sales agents, in some cases.

Here’s one of the key-issues that was discussed by NAR and various Multiple Listing Services on how VOWs operated.

“Some MLSs have objected to VOWs putting information on sold, expired or withdrawn listings on the Internet, saying that it makes it easier to mine data that belongs to their members.”

The settlement, in effect says the Internet and innovation is going to be supported, and you have to allow competition to come into this space. Some brokers don’t like the changes and are trying to protect their business. This says you have to compete fairly.”

To put it in laymen s terms.

If a consumer visits a Realtor or Brokers web site with MLS listing data supplied in an IDX (Internet data exchange) format, most likely the consumer will be able to browse and research data without being required to verify an email address or create a log-in account. However with a VOW site, the consumer has to create a log-in, or leave identifying information to be able to access the data.

One such site is ZIP Realty, whose CEO made the comment’s above. On their site you can enter search criteria for an MLS search however, you cannot view any details of that data, including pictures on their site without registering first.

Only time will tell now how NAR and the MLS’s continue to move forward in the integration of technology

One thing is for certain though, and that is that the monopolistic polices adopted by some MLS boards will continue to garner scrutiny by other state and federal agencies. In that venue the Justice Department is currently engaged in a lawsuit over policies adopted by an MLS in South Carolina, as an example, and the Federal Trade Commission is engaged in a lawsuit with a Michigan MLS.

If you interested in more details on the major talking points, I will defer to the excellent post by non other than Mr. Greg Swain of the Bloodhound Blog.

Look here for the details of the DOJ/NAR proposed Final Judgment,

In closing, I must confess that, Greg’s blog is what I one day aspire to be when mine grows up. Maybe not on this blog, but then again you never know ?

DOJ sets sights on more MLS boards

As the DOJ case against NAR enters into a critical path this summer, the DOJ is starting to take aim at other players in the MLS game. This is only the beginning and it is very apparent to many, that NAR’s iron fisted rule on the MLS will not come out of this unscathed.

Having interacted with over a hundred of the top MLS’s through the United States I can say from my perspective, that this is going to be welcomed with open arms for those wanting to open this up to the masses and to help create a free and unfettered access to this data. The way it has been controlled has got to change. The times and the technologies brought to bear in today’s digital world that we live in are also changing and this is another one of those changes that is coming soon to an MLS Board near you.

Barry Cunnigham over at the Blood Hound Blog wrote a great post on the latest foray into this battle The War Against The MLS Continues | The MLS Must Fall!.

It is worth reading and before you comment, you should arm yourself with the knowledge of actually reading the content of the complaints as filed by the DOJ (links are in the posts – his and mine). Also, be sure to check out the article I wrote back in February 2007 that goes into more background and details on this. MLS Data compliance and NAR vs. DOJ

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MLS Data compliance and NAR vs. DOJ

Marc Davison of 1000 WATT Consulting wrote an article for Inman Real Estate News recently that was in part an answer to a discussion that had been started over at the 3 Oceans Real Estate Blog site, regarding the entry of a New Search firm in the real estate arena called DOT HOMES.

Both posts elaborated on the issue of compliance of IDX data within the search realm. I think this is a good topic to continue because in my humble opinion I think that Marc and Kevin both missed on discussing an important aspect in their respective discussions. While I commend both for bringing up the topic they do not fully detail the problem or the issue at hand here.

Yeah.. Marc does a good job of describing the facts ?that home sellers are not interested in this issue other than they want to sell their house and want the listing data displayed anywhere an every where that will give them a possibility of attracting a buyers attention.?

The problem I have with the context of the issue is that both guys refer to the data as the Brokers Data and that it is a broker issue. That is only partly correct. The larger issue over control of the data that both failed to mention, is the control of the listing data by the local MLS boards. (Multiple Listing Services)

Let me explain for the layman here; Brokers have to pay fees for the IDX (Internet Data Exchange) or RETS (Real Estate Transaction Standard)feeds and many of the MLS Boards have draconian limitations on how and where the data can be displayed. Part of the issue also runs into fairness, competitiveness and the rules of fair play, when they (MLS Boards) appear to have different rules for different brokers and vendors based on who is in this month with a particular MLS board.

Take for example the Utah MLS board. They won?t provide an IDX feed unless you pay thousands of dollars a month. Yep you go it right, THOUSANDs. Another one I have personally dealt with in the past was Lake Tahoe-Incline Village MLS who are so overly protective of their data streams, and these are only a few off the top of my head that I can readily recall of the many MLS’s across the U.S. Who are they protecting though? In the current housing market they are killing the careers of the very people they claim to protect.

MLS Compliance is a rule who?s time has come and gone and should be done away with to better the industry as a whole. In it?s current incarnation it is behind the times, out in left field. In fact you could even say that the current policy?s of the MLS boards are effectively holding your homes listing data for ransom, adding to the quagmire of all ready declining home sales.

I think the the MLS boards are going to have to adopt some type of open source protocol on a national platform, so the likes of DOT HOMES can readily disseminate the data to those consumers who are looking to buy.

I really am not one to advocate the Federal Governments intervention in business, but as the U.S. Justice Department continues it?s probe into NAR?s (National Association of Realtors) business practices it might behoove all of us if they take an even closer look at how the individual MLS? are run and controlled and whether or not NAR?s influence has anything to do with the issue.

NAR has been working to formulate the new rules into what is called the Internet Listing Display (ILD) which is suppose to replace the current IDX and RET?s policy?s. Most of this is as a direct result of the FED?s probe. To date the standard has not been completed and the FED?s initial probe completed in November 2007. A court date of July 7, 2008 has been set.

This is what NAR has posted on their site: NAR strongly disagrees with the government’s contentions and is vigorously defending both the MLS as a vehicle for broker-to-broker cooperation as well as the ability of a listing broker to control the use of that brokers listings on the Internet by competitors.

The problem as I see it is; that the MLS? boards have way too much control and are stifling competition by not allowing those with valid business reasons access to the data, with out putting often times unjust qualifications or access fees for the usage of the data.

Either way there needs to be change in the way business has been done in the past to accommodate future technology and the changing way in which consumers conduct research to purchase homes. My research on DOT HOMES also shows that they provide a direct link to the listing agent without having to drill through tons of minutiae. And that is a good thing !

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Will you find your home on Roost ?

Another NEW Generation Real Estate Platform, joined the likes of Trulia, Realtor.com and Zillow earlier this week. I believe their actual launch was on Wednesday the 23^rd.

Roost.com says they will partner with MLS?s and Brokers. They claim they are unlike other online models in that, ?Roost?s network of broker sites ensures consumers have access to comprehensive MLS listings in major metropolitan areas across the U.S., via close collaborations with MLSs and leading local brokers that can help them find their next home.?

From what I can tell they are predominantly covering the West Coast now and are in about 13 markets. It is too soon to tell if and when they will develop into the South and the Florida Markets.

From a quick overview of their platform, I noticed right off the bat that they have optimized the site for Fire Fox Browser which is great. But they may have missed a beat here. As most Realtors know, almost all of the MLS?s at present require usage of IE and in fact do not work well with Fire Fox. But then again Fire Fox is a much better browsers in my book and many Realtors could do well to add it to their tools.

Gregg Swann over at Blood Hound Blog did a really great job of describing what Roost is all about and how they intend to market their product so I would invite you to take a look at his excellent post on Roost.

If I had one initial comment to make, it would be that the folks over at Roost should spend a little more time on their blog. Using a template advertising someone else’s free WP template does not give the professional polished look you would associate with a New Technology Company that is looking to compete with some of the bigger league players. Other than that I can?t wait to kick the tires and see what this will do for us here in the South and more specifically, the Greater Tampa Bay Area Real Estate markets.

Is Roost a tool for you or your clients to use ?

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