A shift in National Association of Realtors (NAR) rules governing how listings appear on broker websites – a change which may give an advantage to big national brands – is prompting concerns from independent brokerage advocates.
The rule concerns listings displayed on brokers’ websites through “internet data exchange” or IDX feeds. Having an IDX feed on a website allows brokers to display detailed listings from the MLS’ of which they are a member – including other brokers’ listings.
“What it does do is creates an opportunity that levels the playing field and give us an opportunity to compete with the bigger brokerages because we have access to that data,” explained Kevin Sears, co-broker/owner of Sears Realty in Springfield and a former president of the Massachusetts Association of Realtors.
Access to a given MLS’ IDX feed had only been open to brokerages which are members of that MLS. But late last year, NAR made a change to its rules on IDX feeds, allowing franchisors to display the IDX feeds of all their franchisees. Prior to the rule change, large national brands would have to direct website visitors to smaller local or regional subsites to see IDX listings. With the new rule, large brands can now aggregate listings not only from their own affiliates, but from all brokerages in a given market onto one site.
Two large consortiums of independent brokers – The Realty Alliance and Leading Real Estate Companies of the World, which between them represent hundreds of brokerages nationwide – have stepped up to contest the rule change.
Pam O’Connor, president and CEO of LeadingRE, agreed, said that forcing brokers to allow their listing to be displayed by non-MLS members undermines the intent of IDX.
“Use and display of listings is a right and privilege exclusive to members of the particular MLS and the rules don’t permit sending those listings [to non-MLS members] without the express permission of the brokers who ‘own’ those IDX listings,” O’Connor said.
Some local brokers, however, don’t seem to be as concerned.
“I think maybe it’s a bigger issue for a smaller independents than it is for a larger independent,” said Carol Bulman, CEO of Jack Conway Realtor, also a LeadingRE member. Her firm recently revamped its website to improve its search engine rankings, which she said helped the company to improve its lead generation.
