MLS: EVOLVED Q&A FOR BROKER AND AGENTS

Transcription

1 This document is not intended to be an FAQ. This is intended to answer specific and detailed questions not covered in other MLS: Evolved materials. THE MLS: EVOLVED VISION AND THE INDUSTRY 1. What is the next era of MLS? The next era is both philosophical and tangible. First, the MLS: Evolved vision recognizes the broker as the primary customer of the MLS, who must have control over and access to their listing content including the ability to easily direct its distribution. Secondly, the next era of MLS must offer the technology, choice and ease of use that subscribers experience on other popular consumer sites. The MLS itself must employ modern, intuitive and mobile friendly technology. 2. Why is it necessary or advantageous to create an even larger MLS? This is not envisioned as just a larger MLS, but as an entirely new organization that will create a new era of MLS that goes beyond the boundaries of the current structure. Today s consumer, using free and publicly available websites and apps, has access to more property information, across a broader geography, through better tools than their agent can get from their MLS. That puts agents at a disadvantage. Firms of all sizes particularly those located along the edge of existing footprints must belong to more than one, sometimes several, MLSs. This requires: entering and updating listings in multiple systems, training on multiple systems, adhere to multiple rules and compliance requirements, and aggregate information from multiple data feeds for their own broker websites. The proposed consolidation of MLSs that offers a broader geographic footprint with greater depth of data will make the agents better prepared to meet the needs of their customers. It will offer less cost, less time and less frustration for all involved. MLS: Evolved May 15,

2 3. While the benefits are apparent for the large firms, how does this benefit small/midsize firms? In many ways, the smaller and midsize brokerage firms benefit most of all. They will be part of a broader organization that delivers better deeper information than they can get from one MLS or their own firm. Smaller brokers will be able to get and use improved products, beyond just basic MLS and Public Records search and reports, which are included in the standard fee, which perhaps they wouldn t have otherwise. All of this keeps them a step ahead of the consumer. If a small firm sits along an MLS border (an arbitrary border at that it will benefit from gaining that broad geographic footprint in one system, with one login, one set of fees, one set of data feeds, one set of rules and only one place to enter and update data. Consolidation offers benefits of a broader market, less cost, less time and less frustration for all involved. 4. Why not data share? Data sharing typically does not address cooperation and compensation; it leaves the firm still having to follow different sets of rules for each MLS and integrate different IDX feeds and fees; and it does not provide the level and depth of information afforded when belonging to one MLS. Furthermore, making data sharing happen still requires technology and data mapping to incorporate the information, which can be expensive and timely. 5. Will the new MLS participate in the Broker Public Portal and/or Upstream? MLS: Evolved will be in a position to participate in these types of projects. The Board of Directors will make the final decision to participate or not. PARTICIPATING ORGANIZATIONS 6. How can our local association stay afloat without MLS revenue? MLS: Evolved has provided all new charter associations with a fee transition path. The purpose of this path is to create an opportunity, which will help transition new charter associations from the current dependence on MLS revenue and fund other association programs. Listing data will be purchased from new founding shareholders. Listing payments will be made over the first three years. MLS: Evolved May 15,

3 Funds will be made available for government affairs programming. There are certainly challenges to moving away from reliance on MLS revenue. Every association offers valuable services and should be able to charge fees in order to cover operational costs. Furthermore, the resources used today to administer the MLS (vendors, compliance, technology) would be freed up to focus on and expand services for education, legislative advocacy, standards and professionalism. 7. If an organization says no now, will there an opportunity to participate later? What benefits will be available later? Yes. MLS: Evolved believes in an inclusive approach with a simple path for participation. But organizations that join later may miss out on the following opportunities: a say on decisions about governance, structure, services, fees, etc. of the new MLS, payment for the listings contributed to the new MLS, representation of the initial Board of Directors, and employee transition path to the new organization. In addition, subscribers of non charter associations/mlss will also pay a higher standard fee. 8. Why were some markets invited and others not? The current focus is on the markets in the Mid Atlantic region. While most MLSs/associations in that region were invited, not all have elected to participate. 9. Are TREND and MRIS moving forward with consolidation, even if others don t participate? Yes, subject to approval from their current Board of Directors and shareholders. TREND and MRIS will move forward with MLS: Evolved, because they believe it s the right thing to do for brokers and their organizations. MLS: Evolved May 15,

4 THE NEW MLS: OWNERSHIP, SHAREHOLDERS, GOVERNANCE AND RULES 10. Is this a merger, an acquisition or an entirely new organization? This is the creation of an entirely new MLS organization. 11. Who will own the new MLS? TREND and MRIS will incorporate the new MLS organization, and their shareholder associations will become shareholders of MLS: Evolved. Other participating organizations will sign service agreements with the new entity. Regardless of the ownership structure, all of the REALTOR Associations who participate in MLS: Evolved are making a significant investment in the new organization to better serve the needs of area brokers and agents and participate in the governance and decision making of MLS: Evolved. 12. Will the new MLS be for profit? It is planned that the new MLS will be a for profit organization. The intent is that it will generate sufficient profits to reinvest in the company, better serve the brokerage firms and subscribers, and provide for a fiscally sound organization. This model is predicated first on customer satisfaction and does not suggest generating unnecessary profit. 13. What is the composition of the new Board? It is critical to have a Board that can offer various perspectives, comprised primarily of brokerowners and good decision makers, and that has the business experience to function effectively. The Vision Team has agreed upon the following: Board composition during initial 3 4 year transition period MRIS and TREND will each designate 11 directors (to represent their combined 36 shareholders). Each other new charter association will designate 1 director. This will total approximately 30 brokers, depending on the number of associations that ultimately join. Terms will be staggered for either three or four years. The Board will also consist of: 1 association executive the CEO MLS: Evolved May 15,

5 the option for the Board to name 1 outside director the option for the Board to name 1 at large broker director Board composition after transition period Directors will be elected by the shareholders through a nominating process. The Board will have directors consisting of: brokers depending on the number of new charter associations. Of these there will be specific, automatic appointments for the 3 largest firms, by transaction sides. 1 agent 1 association executive the CEO the option for the Board to name 1 outside director the option for the Board to name 2 at large broker directors 14. Will the Board or new Charter Associations make decisions related to products, rules, pricing? Product decisions are made through a professional product management process. Broker and agent input will be influential in guiding the MLS on products and services, and will be documented from support interactions, office visits, surveys, account executives, focus groups and a potential user group. Final decisions will be made through the analysis of this input, in conjunction with the knowledge and skills of the professional staff employed to determine appropriate products, enhancements, and changes. MLS Rules and pricing will be determined by the Board of Directors. MLS: Evolved May 15,

6 THE NEW MLS: MEMBERSHIP, FEES, PRODUCTS AND FEATURES 15. Will participants and subscribers be able to join if they are not REALTORS? Yes. Many participating MLSs currently allow subscribers who are licensed real estate agents but not REALTORS. They will pay a higher subscription fee for MLS access. 16. Will there be a cost for RETS feeds, IDX, etc? Proposed fees for data feeds have been determined. Fees for standard IDX and VOW feeds are expected to be $300 annually with a $250 setup fee. Agent framed IDX and VOW feeds will be free for subscribers of the new MLS organization. 17. Will brokers be billed for their agents or will all subscribers be billed directly? Subscribers will be billed directly. However, the terms of the broker (participant) agreement will likely state that ultimately the broker is responsible for the payment of all fees related to, and associated with, the subscribers. 18. Will brokers control which of their agents are allowed to enter/edit their own listings? Yes. The new MLS will have a detailed and customizable set of controls that will let brokers make these types of decisions. They will be able to control the level of MLS access for each of their agents/admins so the system works in a way that mimics how their office operates. 19. What will the MLS System be? Initially, MLS services will be delivered through the Matrix 360 platform, including ShowingTime. Matrix 360 is the newest version of the Matrix MLS platform provided by CoreLogic. CoreLogic is the vendor that is currently serving 90% of subscribers of MLSs involved in these discussions. They have a track record of serving large MLSs and they provide a system that allows integration of custom and third party software. MLS: Evolved May 15,

7 20. What features will be available for the initial launch? Combined with Matrix 360 and ShowingTime, the initial system will offer many additional features including: an integrated public records platform with a combined listing and public record report foreclosure information drive time lifestyle based searching mobile listing and public records access mobile add/edit market wide appointment data It will also include custom software developed by TREND and MRIS, like a customized closing cost calculator, predictive analytics, a consumer facing website and other services not currently provided in Matrix. 21. How much historical data will be incorporated? Historical MLS data has great value to understanding trends market wide, for a region, and for a particular property. MLS: Evolved will keep as much history as each organization brings. 22. What about commercial listings? The new MLS will certainly include different categories for listings, including commercial. At a later date the new MLS organization will determine if it should focus on a separate commercial property information exchange. 23. What s the plan for lockboxes? It is planned that they will continue to be operated/managed by the local REALTOR associations. MLS: Evolved May 15,

8 24. Will there be a broker rewards program where brokers receive monies for providing their listings to the MLS? Yes. Brokers are the foundation of the MLS and make the cooperative marketplace a reality. This program is designed to allow brokers to share in the profits of a successful MLS, and receive a financial benefit for entering accurate and timely data. All firms will be eligible to participate as long as the broker is in good standing. The reward will be based on the number of accurate listings entered by that firm for the given year. 25. Will there be a buyer/seller referral system? There are no plans to offer this. THE NEW MLS: SUPPORT SERVICES AND LOCAL INPUT/PRESENCE 26. How will the new MLS system meet my local needs? The new MLS will provide deeper localization such as: Integration with a Buyer and Seller Closing Cost tool: using the municipality and school district of the listing, it will access local tax rates (updated regularly), prorate based on the closing date and calculate how much money is needed/gained at closing. Analytics outlining listing performance based on showing appointments, , and views relative to other listing in that neighborhood, municipality, school district, etc. Listing fields suited to particular markets.(ex: oceanfront or other water features). The MLS dashboard would dynamically display news and information based on each subscriber s location, listing activity, association, etc. Association and office staff could post news to this dashboard, which would display just for their members. There would be integration of association specific products, like zipforms, in markets where the association has a site license for that product. MLS: Evolved May 15,

9 27. How much local presence/input will a new founding organization have as part of a larger MLS? Each of the new charter associations (those not currently MRIS or TREND shareholders) will designate 1 director to the initial Board of Directors of the new MLS, to serve a 3 or 4 year term during the transition period. The new MLS will assign an Account Executive to each local market area to visit offices, offer training, attend Board meetings, and overall act as a conduit between the MLS and the local market. They will strive to ensure that local differences are addressed to achieve maximum customer satisfaction. They are in the field every day. There will be a Support Center based within the area of the new MLS, offering 7 day a week support on the MLS, the industry and other issues. It will offer support via phone, chat, and . Support will also be available 24/7 via an online support knowledgebase. Overall, the new MLS will maintain open and transparent communication with agents, brokers and brokerage staff, and will facilitate a dialogue with them through the account executive and support staff, as well as focus groups, surveys, commenting and social media. Feedback will be documented and distributed throughout the new MLS. Decisions on products and services, as well as system, functional and policy changes will be made through the analysis of this subscriber input, in conjunction with the knowledge and skills of the MLS professional staff. 28. Will there be regional service centers? The new MLS will have a local presence in each area through the Account Executive, who will hold training in the offices and at the REALTOR association offices. There will also be a support center standing ready to answer questions seven days a week. It is no longer necessary to have regional service centers. 29. Where will the MLS be located? After the new MLS is formed and becomes operational, an analysis will be done to determine where the best location, or locations, will be for the headquarters and operations. It will be based on cost, convenience and the ability to attract and retain great talent. MLS: Evolved May 15,

10 30. How does MLS: Evolved propose to address serving agents across state lines? Many brokers already cross state lines and have systems and processes in place to manage that. The proposed model for a new MLS system would anticipate the customization needed to target local data sets, market customs and differentiating factors based on county, state or other laws. And there will be local representatives in each market that can provide a detailed level of service. TRANSITION TO THE NEW MLS 31. What is the timeline? Due diligence (financial, legal, operational, technical, etc.) will be completed in The new legal MLS entity will be established January 1, Organizations will begin to convert in A customized transition path and schedule (including training) for this conversion has been created for each organization. 32. TREND just moved to a new MLS system; is that the conversion for this new MLS? No. The TREND conversion to CoreLogic s Matrix 360 is completely separate from this initiative. However, the Matrix 360 product, along with Showing Time, custom software from TREND and MRIS as well as many other products and services will provide the basis for the new system. 33. Will any of the agents contacts and contact information, saved searches, client portal information be transferred from their current system to the new system? The plan is for MLS: Evolved to transfer all contacts, contact information and saved searches to the new system. Client portal information will not transfer, but a new portal for that client will be created based on their saved search settings. 34. Will a company's IDX feed transfer? Yes, in coordination with a company s conversion, MLS: Evolved will work with vendors to move a company s IDX feed to the new MLS Evolved IDX feeds. MLS: Evolved May 15,

11 35. Will a company with an existing IDX feed be charged the set up fee? A company with an existing IDX feed will not be charged the setup fee. This fee is also waived for existing customers of organizations participating in MLS: Evolved at its formation up to six months after their actual conversion. MLS: Evolved May 15,