The value of the MLS cannot be understated. REcolorado has strategically boosted that value with a focus on building a trusted, cooperative, and comprehensive real estate marketplace to position customers for success.
With the real estate industry adjusting to the National Association of Realtors commission lawsuit settlement agreement, the importance of a tried and trusted MLS business partner is undeniable.
HousingWire spoke with Gene Millman, president and CEO of REcolorado, the largest multiple listing service (MLS) in Colorado. Here’s what he had to say about the future of the MLS.
HousingWire: REcolorado does not just serve Colorado real estate professionals you consider yourselves their business partner. Tell me about your collaborative partnership approach.
Gene Millman: REcolorado has a culture of collaboration. We make every effort to be attuned to the needs of our market. Never has it been a more appropriate time to be business partners with our subscribers. We continually talk to our subscribers to understand the specific needs of our market. We also stay engaged at an industry level to ensure we are current on emerging trends. This approach gives us the insights and connections we need to deliver custom solutions that will contribute to our subscribers’ success. The positive accolades we’ve received from our subscribers is a testament that our partnership approach is providing tremendous value to them.
HW: Value is a word that’s been thrown around a lot based on current industry events, what does that mean to you?
GM: To define yourself as an MLS, you have to define your value proposition. A primary part of our value to our subscribers is the depth and breadth of data we provide, and we are continually deepening that well. We view ourselves as a data company and a service provider. I truly believe that the MLS creates this ecosystem around the transaction.
The real estate professionals we serve count on us to provide holistic property data to power their tools, give them insights they can use to advise their clients, and help them do business. The more educated they are, the more information they share with buyers and sellers, the better, and we are a business partner with them from that perspective.
Our data sets continue to get richer. And, my dream is that it’s on demand — a click of a button for our subscribers. We want to provide that complete view of a property that goes beyond two bedrooms and two bathrooms.
HW: With data comes the need to protect it. Tell me more about data protection.
GM: We are all keenly aware of the data breaches that have impacted our industry, including the mortgage and title sides of the business. This year has been a tremendous wake-up call for the real estate industry. We understand that the brokers, agents, and appraisers that subscribe to REcolorado need to make a living for their families, so we have a large responsibility to their data — one of their most valuable assets. If our system is compromised, they can’t make a living. So, we take data protection very seriously.
HW: Is REcolorado planning on making any major changes to its MLS (besides those mandated in the settlement terms) as the industry goes through this period of change?
GM: REcolorado takes a proactive, transparent, subscriber-focused approach to operating our business. As we monitored the lawsuits, this approach led us to strengthen our business-friendly, market-driven policies and remove the compensation requirement. As a result, REcolorado users will not see major changes. As more details and clarity become available, we’ll talk to our subscribers and make any potential changes that are specific to our market. Additionally, we have continued our long-standing tradition of providing MLS perspective to the state licensing authority, which is used to promote consumer-friendly policies and practices.
HW: With offers of cooperative compensation no longer allowed to be displayed on the MLS, is there any concern that agents may stop using the MLS to share listings?
GM: The REcolorado MLS does not require cooperative compensation. The value provided by REcolorado MLS is much greater than the offer of compensation. Our customers, consumers, and the industry rely on the MLS for accurate and fair access to all residential inventory, which facilitates cooperation among agents. That same inventory powers the tools, services, and insights that are used to facilitate the home buying and selling process. It also provides immense value to appraisers as they use comprehensive, accurate data to ensure timely and accurate valuations. The settlement strengthens the value a buyer’s agent brings to a real estate transaction and reinforces it in the buyer representation agreement. REcolorado will continue to champion a transparent and efficient marketplace, giving all consumers equal and fair access.
HW: What does the future of the MLS look like?
GM: I truly believe an MLS creates an ecosystem around the transaction. We touch it from the beginning when someone lists or buys a house. Through that whole process, MLS data is used, whether it’s to search the property, perform the appraisal, or during the mortgage process.
I really think the MLS of the future is creating an ecosystem around data. That data isn’t just “four bedroom, two bathrooms.” It’s holistic property data and that is becoming more and more important to our subscribers and to the industry. If we can give our subscribers deep information about a property and community, they can be more educated and share that information with their buyers and sellers.
