CMLS Chairman John DiMichele on the state of play at multiple listing services

The goal of MLS and CMLS is to make sure we communicate these things and that people understand how valuable they are. Our concept is: let’s keep moving forward. Let’s do the work that needs to be done. Let’s make sure we talk to policymakers. Help them understand what MLS is and how important the real estate industry is as a driving force. So, look for some of that stuff as we travel this road.

Andrews: One of the things that’s going on is obviously the implementation of the new rules that have been imposed by the antitrust settlement agreed upon by the National Association of Realtors (NAR). Do you think the dust has settled on that?

DiMichele: Speculating on these kinds of things is very difficult. I think eventually everyone will accept this as something that needs to be sorted out, as you say, but realistically it’s hard to predict what will happen. People still travel back and forth there. I suggest that there will be some reflection in the near future, and what I mean by that is that we will come to the realization that everything is where it should be and how it should be.

Andrews: There have been some data sharing agreements recently announced between MLSs involving overlap between home buyers and sellers. How do you see these and do you think we’ll see more?

DiMichele: Data sharing agreements are a natural progression as the world gets smaller and people start to realize how valuable this information is and how important it is to have transparency. It will take some time, but you can see people making these kinds of decisions and making progress in our market.

It’s a natural progression like this concept of overlapping market disorders where people would see listings on their marketplaces that weren’t in their database. That just doesn’t make sense. It’s not efficient. The more you dilute that database, the less efficient it becomes, and the consumer essentially doesn’t get the benefit of that transparency so they can make an informed decision with confidence.

Andrews: The Clear Cooperation Policy (CCP) – which requires seller’s agents to post a listing on the MLS within 24 hours of signing a listing agreement – ​​is being challenged by some big names in the industry. What do you see as the value of CCP for both agents and consumers, and do you think this policy will survive this challenge?

DiMichele: We want the consumer to get a complete picture. You want the broker to have that knowledge base and data that will help facilitate the transaction on behalf of their clients or their clients or the parties they work with.

I don’t understand why having different databases is a good thing. If you’re buying a house, wouldn’t you want me to give you all the details that will be relevant? Let’s go back to the car engine analogy: If you start diluting that gasoline, eventually that engine starts to sputter, so I have a really hard time with the idea of ​​segregated lists or not having that transparency. So I believe that the MLS should be able to do its job to serve the consumer properly. CCP should be something we all respect and want.

Andrews: Some industry professionals say widespread MLS consolidation won’t happen, while others say it absolutely will. What is your view on consolidation and do you think we will see more of it? Is that beneficial for MLSs?

DiMichele: There will be a natural movement in that area over time as marketplaces grow. Certain areas need it. There are still many MLSs out there. People will start to realize that the market is more important. We want to have an efficient market. We want to be able to serve members and consumers efficiently with the data they need to do their work.

Let’s face it: the market has been depressed lately. It’s being tested by many factors, but I think the dream of owning your own home is still very much alive. We know that owning a home is almost considered the fourth pillar of wealth management and retirement planning. It’s the first step to wealth, so the consumer will drive this, and I think all those other problems will kind of disappear.

Andrews: Do you think there is room for newcomers and perhaps even an MLS with a national footprint?

DiMichele: I never really believed in that, simply because real estate is local. Because you’ve been active as a practitioner, there are certain things you can standardize, so to speak, but there are a lot of local and regional issues. There are parts of the country that are very specific about how real estate actually functions, so unless you gather it all locally, you don’t have that expertise and that knowledge base.

The data can only go so far. It is the knowledge that is important that the broker brings with him. I think there may be regional change and regional consolidation, but from a national standpoint I just don’t see that.