The National Association of REALTORS® (NAR) is proposing a series of changes to its multiple listing services (MLS) in the new year, according to recent reports.
NAR’s MLS Technology and Emerging Issues Advisory Board passed a bundle of motions focused on sprucing up the transparency and functionality of its association-operated MLS for participants and subscribers.
“The advisory board moved forward with these recommendations because we think they ensure that MLSs are up-to-date with advancements in technology and consumer preference, operate with transparency and maintain policies that make the consumer experience better,” said Greg Zadel, chair of the advisory board in a statement following the committee’s Sept. 9 – 10 meeting.
If accepted by the Multiple Listing Issues and Policies Committee and NAR Board of Directors in November, the policies will go into effect on Jan. 1, 2022, and MLSs will have until Mar. 1 to adopt the changes locally, according to NAR reports.
Zadel, who is also the broker/owner of Zadel Realty in Firestone, Colorado, suggested the proposed policies would serve the interest of consumers while also strengthening NAR policies and its code of ethics.
Based on the list of recommendations, the advisory board wants to eliminate filtering features that show MLS listings based on the level of compensation offered to the cooperating broker or by the name of a brokerage or agent.
The advisory board recommended amending the language in the Internet Data Exchange (IDX) policy and the Virtual Office Website (VOW) policy to make it consistent with the prohibition on filtering and restricting MLS listings.
Another motion would restrict MLS participants and subscribers from advertising their services to buyers and sellers as “free,” according to the list of recommendations.
“While REALTORS® have always been required to advertise their services accurately and truthfully, and many REALTOR® services have no cost to the recipient, this change creates a bright-line rule on the use of the word ‘free’ that is easy to follow and enforce,” read an excerpt from the advisory board’s recommendation list.
Along with improving transparency, the advisory board recommended a batch of best practices for the MLS Standards Work Group that it claimed could “deliver a higher level of service and engagement with MLS participants and subscribers.”
The suggested best practices include:
– Disciplining participants who violate MLS rules
– Informing participants about the data feeds and technical support available to them and their vendors on the MLS site
– Sharing aggregated data with state associations and NAR for statistical and advocacy purposes
– Clarifying MLS officers’ and directors’ fiduciary duty
– Developing an annual MLS strategic plan with specific consideration to leadership training, partnerships, technology, participant outreach, financial independence, diversity, equity and inclusion
The group also suggested creating a written plan with a timeline and cost estimate for complying with the Real Estate Standards Organization’s (RESO’s) Data Dictionary by July 2022.
Other recommendations included adding listing broker attribution in the IDX and VOW policies and requiring MLSs to offer participants or their designees a single data feed and a brokerage back-office feed.
The list of potential changes could grow as the advisory board prepares for another meeting in October.
The MLS Issues and Policies Committee and NAR Board of Directors are set to vote on the policies on Nov. 13 and 15, respectively, during the REALTORS® Conference & Expo.
Jordan Grice is RISMedia’s associate content editor. Email him your real estate news to jgrice@rismedia.com.
Should never have been a search field by compensation
I’m pretty surprised about filtering MLS listings according to compensation. I had no idea that was even possible, and I agree that it should not be. But I disagree with not being able to search by broker or listing agent. It is quite common for clients to indicate they have seen a particular sign and want to know more about the property. Being able to search by brokerage or listing agent is helpful to identify which property they have seen in order to give them information they are seeking about it.
on the transparent transactions, why not disclose both listing and selling commission.
“Filtering” features that allow us to search for a Broker or Agent in our MLS systems should be kept in tact! Sometimes we search for a property by street address or map location, but that property cannot be found (due to mistakes in the listing input, street misspelled, or various other reasons…) so if we can get the NAME of the Broker/Agent off a posted sign or other form of advertising we can then go into the MLS system & search that Broker/Agent’s listings with hopes of resolution. Clients contact us with names of Agents who post signage or other Ad forms, without an address. We have so many valid reasons we’d like to be able to continue to search specific Brokers/Agents through the MLS. Reasons that DO NOT HARM consumers!
I search by agents and offices for the type of listings they normally represent. Some agents list large ranch land or income type properties, and I want to search for the listing those agents may carry.
What if my prospect calls about a property that is listed and advertised by agent Bobby Smith, but thats all they recall?
Being able to search listings by an agent name or office name is a necessary tool that does not lead to discrimination or less transparency.
I highly recommend that non-licensed real estate persons are also elected to the Board of Directors to include the voices of those we serve, not solely ourselves. Look at the Florida Real Estate Commission. They include non-licensed persons to sit on their board. If the NAR is the largest organization of its kind, why do we police ourselves???
We utilize the search by broker for reverse prospecting and to contact realtors who have had previous listings in a neighborhood. Please do not eliminate this search.