Comments on: Time to Defrag? http://sandiegohomeblog.com/2006/10/26/time-to-defrag/ A San Diego Real Estate Web Log Sat, 13 Mar 2010 21:29:14 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: Kris Berg http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-4152 Kris Berg Fri, 03 Nov 2006 15:15:59 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-4152 Good comments. Their fear of course is that "full access" will somehow fuel the disintermediation we all talk about as coming. (Hate the "d" word, by the way, but it works here). We had two calls for showings on our listings yesterday and both were from self-proclaimed listing agent shoppers ("I can get a better deal by going directly to the listing agent). The buyer's agent is not dead, but he may be in trouble. There is enough information out there without the full participation of the various MLS's to cause the change in our industry that we are seeing. I agree that it is time for NAR and the various Boards of Realtors to shift their thinking. Good comments. Their fear of course is that “full access” will somehow fuel the disintermediation we all talk about as coming. (Hate the “d” word, by the way, but it works here). We had two calls for showings on our listings yesterday and both were from self-proclaimed listing agent shoppers (”I can get a better deal by going directly to the listing agent). The buyer’s agent is not dead, but he may be in trouble. There is enough information out there without the full participation of the various MLS’s to cause the change in our industry that we are seeing. I agree that it is time for NAR and the various Boards of Realtors to shift their thinking.

]]> By: Real Estate Junkie http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-4128 Real Estate Junkie Fri, 03 Nov 2006 05:34:55 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-4128 What would you say to your buddy if he called you in the middle of the night with an ingenious business plan. Create a website that people can go to to see what's for sale on eBay!! Wow, think of the traffic he could draw because lots of people want to see what's for sale on eBay! But wait a minute, why wouldn't they just go to eBay to see what's for sale on eBay? Oh, that's right, they would just go to eBay. Well, the real estate industry has created such a hodge-podge of antiquated, old-boys-club, protectionistic, dinosaur mentality MLS systems that are "closed shops" (ie closed to the public), but what about the Internet? What about the IDX policies? What about Realtor.com (the official website of the NAR, right?)? So, I guess the public does have access to the listings? The point is that if the NAR were run by a modern-thinking management team and Board of Directors (instead of one of the most top-heavy, beaurocratic, union-mentality conglomerate of self-interested competitors) there would be one common MLS system used throughout the country (and the world). There would be one website that people everywhere would go to for Realtor listings (maybe they could wrestle the domain name Realtor.com back from HomeStore?). Geez, if they did that their business model could enjoy the bounties of "network externalities" (not sure what that means? look it up). Those network externalities are the reason that the MLS's were so successful for the past 40 years, and now that world has shrunk (ie mass communication and instant information), the NAR better adjust or prepare to abandon ship... What would you say to your buddy if he called you in the middle of the night with an ingenious business plan. Create a website that people can go to to see what’s for sale on eBay!! Wow, think of the traffic he could draw because lots of people want to see what’s for sale on eBay! But wait a minute, why wouldn’t they just go to eBay to see what’s for sale on eBay? Oh, that’s right, they would just go to eBay. Well, the real estate industry has created such a hodge-podge of antiquated, old-boys-club, protectionistic, dinosaur mentality MLS systems that are “closed shops” (ie closed to the public), but what about the Internet? What about the IDX policies? What about Realtor.com (the official website of the NAR, right?)? So, I guess the public does have access to the listings?

The point is that if the NAR were run by a modern-thinking management team and Board of Directors (instead of one of the most top-heavy, beaurocratic, union-mentality conglomerate of self-interested competitors) there would be one common MLS system used throughout the country (and the world). There would be one website that people everywhere would go to for Realtor listings (maybe they could wrestle the domain name Realtor.com back from HomeStore?).

Geez, if they did that their business model could enjoy the bounties of “network externalities” (not sure what that means? look it up). Those network externalities are the reason that the MLS’s were so successful for the past 40 years, and now that world has shrunk (ie mass communication and instant information), the NAR better adjust or prepare to abandon ship…

]]> By: Sandy http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3730 Sandy Tue, 31 Oct 2006 02:20:10 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3730 It seems like www.hooray.com is on to something. It serves both local, state and national. Apparently the For Sale By Owner Listing are uploaded directly with the Broker Agent Listings. It will be interesting to see how Utah and Idaho utilize this service over the next year. So far it looks good. I have noticed new brokerages signing on. Look out Regional MLS and Realtor.com! It seems like http://www.hooray.com is on to something. It serves both local, state and national. Apparently the For Sale By Owner Listing are uploaded directly with the Broker Agent Listings. It will be interesting to see how Utah and Idaho utilize this service over the next year. So far it looks good. I have noticed new brokerages signing on. Look out Regional MLS and Realtor.com!

]]> By: Kris Berg http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3633 Kris Berg Mon, 30 Oct 2006 14:23:20 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3633 Thanks for chiming in, Kevin. All I know is that I have to pay close to $1500 a year for the privelege of having my contact info displayed next to my listings on Realtor.com. I may own the relationship with the client, but I have to pay dearly to further Realtor.com's role as a search facilitator. I guess that makes me an enabler. Thanks for chiming in, Kevin. All I know is that I have to pay close to $1500 a year for the privelege of having my contact info displayed next to my listings on Realtor.com. I may own the relationship with the client, but I have to pay dearly to further Realtor.com’s role as a search facilitator. I guess that makes me an enabler.

]]> By: Kevin Boer http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3595 Kevin Boer Mon, 30 Oct 2006 07:00:33 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3595 Great post on a complicated subject, always appreciate your insight. I believe that Realtor.com does indeed pay for its feeds from the ~900 MLS's around the country. Those fees add up to a hefty chunk of change and are, I believe, part of the reason why Realtor.com has had financial trouble in the past. Realtor.com does not feel obliged to play by the rules. As the "official site of the National Association of Realtors," I find it ironic that they break some of the data display rules -- however archaic they might be -- recommended by NAR and implemented by many of the local MLS's. Classic example is that Realtor.com now displays sold listings (probably because of pressure from Zillow) despite pretty clear rules in many MLS's, including ours here in Silicon Valley, prohibiting that very thing. Ultimately we should all continue doing what we do best. Realtors are not in the business of search; Google is not in the business of representing clients in buying and selling homes. Realtors will continue owning the relationship with the client, and Google et. al will help consumers find homes, Realtors find clients, and clients find Realtors. Great post on a complicated subject, always appreciate your insight.

I believe that Realtor.com does indeed pay for its feeds from the ~900 MLS’s around the country. Those fees add up to a hefty chunk of change and are, I believe, part of the reason why Realtor.com has had financial trouble in the past.

Realtor.com does not feel obliged to play by the rules. As the “official site of the National Association of Realtors,” I find it ironic that they break some of the data display rules — however archaic they might be — recommended by NAR and implemented by many of the local MLS’s. Classic example is that Realtor.com now displays sold listings (probably because of pressure from Zillow) despite pretty clear rules in many MLS’s, including ours here in Silicon Valley, prohibiting that very thing.

Ultimately we should all continue doing what we do best. Realtors are not in the business of search; Google is not in the business of representing clients in buying and selling homes. Realtors will continue owning the relationship with the client, and Google et. al will help consumers find homes, Realtors find clients, and clients find Realtors.

]]> By: More on Realtor.com vs. the local MLS at PressReal.com http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3590 More on Realtor.com vs. the local MLS at PressReal.com Mon, 30 Oct 2006 04:31:37 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3590 [...] Kris takes a clear, even-handed view of this topic in her post entitled, “Time to Defrag?“  I know everyone has an opinion of this volatile issue.  I recommend you read this post to broaden your horizons.  It may not change your mind on anything, but it will make you think. Filed under: NAR, Real Estate   |  By: Allan  |   [...] [...] Kris takes a clear, even-handed view of this topic in her post entitled, “Time to Defrag?“  I know everyone has an opinion of this volatile issue.  I recommend you read this post to broaden your horizons.  It may not change your mind on anything, but it will make you think. Filed under: NAR, Real Estate   |  By: Allan  |   [...]

]]> By: Tab-surfing: Cataloging my collection of good posts… | BloodhoundBlog | The weblog of BloodhoundRealty.com in Phoenix, Arizona http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3322 Tab-surfing: Cataloging my collection of good posts… | BloodhoundBlog | The weblog of BloodhoundRealty.com in Phoenix, Arizona Sat, 28 Oct 2006 16:46:17 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3322 [...] It’s a six-month-a-versary at The San Diego Home Blog. It turns out all the great RE.net raconteurs are in San Diego. Kris Berg has some thoughts on MLS fragmentation, as well. [...] [...] It’s a six-month-a-versary at The San Diego Home Blog. It turns out all the great RE.net raconteurs are in San Diego. Kris Berg has some thoughts on MLS fragmentation, as well. [...]

]]> By: Phil Hoover http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3249 Phil Hoover Fri, 27 Oct 2006 23:37:59 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3249 Privacy and closely-held listing information are all but relics of the past. I strongly believe we will see the MLS concept (as we now know it) disappear within the next 5 years; to be replaced by something like Google Real Estate or other new emerging technology. If you don't believe me, read Google's Mission Statement. There is simply too much going on with potential DOJ anti-trust litigation, Zillow, Trulia, Google, etc. for that not to happen. Realtors lost the battle when they gave their MLS data to Realtor.com, implemented IDX, etc. To believe that we can keep our information private is utter folly in this new age of free-flowing information. The consumer is going to demand that listing information be freely available whether Realtors like it or not. Those who fail to realize that are going to be relegated to the sidelines as others capitalize on the new opportunities arising from that information. Privacy and closely-held listing information are all but relics of the past.
I strongly believe we will see the MLS concept (as we now know it) disappear within the next 5 years; to be replaced by something like Google Real Estate or other new emerging technology.
If you don’t believe me, read Google’s Mission Statement.
There is simply too much going on with potential DOJ anti-trust litigation, Zillow, Trulia, Google, etc. for that not to happen.
Realtors lost the battle when they gave their MLS data to Realtor.com, implemented IDX, etc.
To believe that we can keep our information private is utter folly in this new age of free-flowing information.
The consumer is going to demand that listing information be freely available whether Realtors like it or not.
Those who fail to realize that are going to be relegated to the sidelines as others capitalize on the new opportunities arising from that information.

]]> By: Jeff Brown http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3077 Jeff Brown Thu, 26 Oct 2006 23:37:38 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3077 Jeff Brown at Behind The Curtain http://bawldguy.wordpress.com/ SAYS: "I’ve spoken to Kris and she’s impressive in her grasp not only of San Diego real estate but in her computer geekness. And you don’t want to miss Steve’s posts which at times resemble good old fashioned Bawldguy Rants." Jeff Brown at Behind The Curtain http://bawldguy.wordpress.com/ SAYS:

“I’ve spoken to Kris and she’s impressive in her grasp not only of San Diego real estate but in her computer geekness. And you don’t want to miss Steve’s posts which at times resemble good old fashioned Bawldguy Rants.”

]]> By: Kris Berg http://sandiegohomeblog.com/2006/10/26/time-to-defrag/comment-page-1/#comment-3034 Kris Berg Thu, 26 Oct 2006 19:13:40 +0000 http://sandiegohomeblog.com/2006/10/26/time-to-defrag/#comment-3034 It could be, but if your scenario does indeed come to pass, I believe it will be awhile getting there. Naturally, most agents won't embrace the concept of MLS (and therefore, agent) bypass. I think a more logical scenario would be for the various MLS's to simply feed the future site you speak of. That way, everyone is happy. It could be, but if your scenario does indeed come to pass, I believe it will be awhile getting there. Naturally, most agents won’t embrace the concept of MLS (and therefore, agent) bypass. I think a more logical scenario would be for the various MLS’s to simply feed the future site you speak of. That way, everyone is happy.

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