MLS leaders explore federation for data sharing and consumer transparency

Key facts

• MLS leaders are exploring a federation model to standardize data and enhance consumer transparency.
• Dan Troup is leading the Broker Public Portal (BPP) initiative, which powers the consumer search experience Cribio.
• The goal is to create a unified backend for MLS data, allowing direct access for buyers and sellers.
• Industry experts acknowledge resistance to change due to local politics, competitive rivalries, and financial risks.
• A single national MLS is largely opposed due to antitrust concerns and the loss of local market expertise.

MLS leaders are grappling with the dual demands of modernizing their technology for AI-driven efficiencies and navigating a complex regulatory landscape. A potential solution gaining traction is the formation of a broker-agnostic federation of multiple listing services, unified by data standardization and a commitment to direct-to-consumer market transparency.

Dan Troup is spearheading one such effort through the nonprofit Broker Public Portal (BPP), which oversees the consumer search experience Cribio. This platform aims to provide a direct, ad-free data feed from MLS partners to buyers and sellers, bypassing the monetization strategies of third-party portals like Zillow and Redfin. Troup's goal is to empower MLSs to better serve consumers while avoiding the perception of profiting from agents.

However, the operational and financial risks associated with upgrading systems and potential vendor switches present significant hurdles for many MLSs. Troup emphasizes that the vision is not a single national MLS, which he believes would undermine the value of local market knowledge. Instead, he advocates for more localized data sharing and a unified data layer, similar to initiatives by RESO.

Kane Schaller, broker-owner of Dickson Realty, echoes the sentiment that hyperlocal knowledge is crucial and that a national MLS could erode this value. He notes that agents from larger markets may lack the nuanced understanding of specific micro-markets, potentially hindering their ability to represent buyers effectively.

Sam DeBord, head of the Real Estate Standards Organization (RESO), supports efforts to unify data input and sharing, though he acknowledges significant resistance to change within the industry, often driven by "money, power and jobs." He believes past attempts at creating an industry data backbone have stalled due to competitive rivalries.

Jessie Edgerton, CEO of the Council of Multiple Listing Services (CMLS), is not convinced a single national MLS is the answer, citing potential antitrust issues, job displacement, and loss of local autonomy. She believes the neutrality of the current MLS system is a strength and supports consolidation only if executed correctly, noting that current industry discussions are fragmented.