Inman contributor Creed Smith wrote a column published on the real estate news site suggesting that the system real estate agents use to access listing information, the Multiple Listing Service, was on the way out. It ignited a heated debate among Inman staffers and commenters, earning a reply from Inman managing editor Matt Carter.
If the real estate industry were invented today, there would be no NAR (National Association of Realtors) or MLS (multiple listing service), and perhaps no franchises — there might not even be real estate brokers.
The MLS was built for three reasons:
- To place all information on homes for sale and sold homes into a central location for brokers.
- To create a percentage of sale price payment agreement between brokers.
- To elevate NAR and the MLS companies to almost godlike status with monopoly power.
The marketplace now demands a system built on their desires, not those of NAR. How would you build a system for selling and buying homes based on market desires with today’s technology and market dynamics? You would offer an open-source international database (website … portal).
You can read Smith’s full-length piece on his Demon of Marketing website, but we wanted to get the perspective of local brokers and Realtors on the cutting edge of real estate here in North Texas as to whether we should be writing a eulogy for the MLS system.