MLS PIN, the multiple listings service used by a majority of Realtors in the Bay State, has signed on to participate in a new national property database being created by the National Association of Realtors.
Called the Realtor’s Property Resource, or RPR, the initiative has proved controversial with many MLS executives since its unveiling last November, with many declaring they would not participate. Some fear of the project’s potential to become a de facto national MLS. Industry lawyers have raised concerns about the scope of the powers RPR would have to repackage MLS data.
On Monday afternoon, the RPR publicly released a new set of terms and conditions for MLSs in order to address such concerns.
Kathleen Condon, president and CEO of MLS PIN, said the company had signed a preliminary agreement yesterday to be a beta testing site for the RPR project, subject to a review of the revised final terms and conditions being offered by the NAR. If acceptable, she anticipates that MLS PIN might begin sharing its data next month.
RPR President Marty Frame has indicated RPR intends to allow members of MLSs which are part of the beta testing to begin accessing the site in May. The RPR site will be open to NAR members only, and will offer information for every property in the country, including public records data, demographic information and listings data from MLSs. Users will be able to track properties, make notes and prepare customized presentation materials for clients.
The site will also include a new automated valuation model that will incorporate direct input from Realtors to form its estimates, a feature which NAR hopes will allow it to provide a more accurate rival to valuations aimed at consumers, such as Zillow.com’s Zestimates.
Despite Condon’s willingness to participate in the project, she still has some concerns about some possible features, including products that could be sold to third parties. The RPR’s terms do not define who they would sell the products to, but the company indicated that government agencies and investment firms might be interested.
Condon said one large reservation she had, however, has already been addressed: Members will be able to opt out and not share their listings with the RPR.
Despite her concerns, Condon said she anticipates that being involved in RPR could have substantial benefits for her membership.
"One of the things it will give us within a couple of years is tax and deed data that I’m currently paying for, and if I can pass on a savings to my customers, that’s part of my job," she said.
If the agreement goes forward, it will only be binding for one year, at which point MLS PIN will have a chance to reconsider its participation.
At least one reason to reconsider is already apparent. RPR has indicated that it does not intend to offer payment to MLS for the use of their data until the site has become profitable, which it intends to do by selling data and analysis products to third-parties such as government agencies and investment firms.
RPR’s potential to shake up the industry has spurred rival data firms First American and Move into action. Both have recently begun approaching MLSs with their own offers, in which MLSs would receive immediate payment for licensing their data. Condon said she has already been approached by First American and will meet with their representatives next month.
