Nov 2017 update:
There is still a case to be made for an Open Source MLS. A project that could lead the way to this is:
It is a website builder for the real estate sector but it also contains functionality for importing data from various sources (including MLSes). It also allows the exporting of data to other sites. This functionality will eventually be enhanced to allow agents to set up a private peer to peer MLS.
Caveat - I'm not in the real estate industry per-se but work as a programmer in real estate related spaces (namely ActiveRain.com although these ideas don't reflect on or imply ActiveRain's approval - I just work for them. I have nothing to gain [other than a weekly paycheck] by promoting/mentioning them here - just doing full disclosure. I'm not an owner, investor, etc. in ActiveRain). I would be interested in working with the industry to implement ideas put forth below.
Since many of the Realtors out there I've spoken with don't seem to understand what open-source is or how it could solve many of the issues in the real estate industry I'll try to layout how open source could resolve many of the Core Issues
Core to most open source projects is the idea that Information wants to be free. For information to be free the tools controlling that information must be of an open nature: no one owns the tools, has full control over them, etc. In an open source world you make your money on the services you offer, not on controlling the free flow of information (i.e. MLS listing fees) or access to that information (i.e. my competitors can't see this for arbitrary reasons that really only benefit me). It is to the advantage of those making money on the services to fund and develop the tools and the data. "Many hands make light work" is how open source projects work. The diverse nature of those working on the open system remove competitive problems.
Right off the bat an open source MLS system (backed by an open data format / repository) would likely solve the following Core Issues:
1) inefficiencies /expenses
2) legal permissions regarding advertising (this would not be a monetized system)
4) consumer access to MLS data
6) innovation of software
8) compensation
9) who runs and owns the MLS system
Missing from the Core Issues (from a consumers perspective) is the idea that the MLS listing isn't the Realtors/Brokers property but the consumers property. The consumer should be able to decide what is and isn't available to people viewing the data.
To start to address the other Core Issues (which I admit I might not fully understand, but am here to learn):
3)
Use of MLS data by lead generation companies to sell leads back to agents and brokers. I believe a more open system with more open data would remove this as an issue. With open access to the data a more efficient lead system would develop (something like ActiveRain's Referral Exchange but on a much larger scale)
5) Competitor access to listing data, and use of such data for advertising purposes. I see this as an industry problem related to "how do I remain the biggest fish in the tank?". I probably don't fully understand this issues around this point but they seem to be related to competitors calling up your clients and offering them better deals. Doesn't the contract you sign with your buyer/seller agent cover this?
7) How and when do agents engage consumers on the web while complying with agency disclosure and representation rules? I don't know - I don't understand this issue well enough. Example?
- Data Format
- Data Access rules
To tackle how that would work in an open source system would require a relatively detailed discussion of the MLS Data. I would propose starting a page that outlines the MLS Data and it's permission issues. In any case the governing body needs to be conflict free. In other words, they can't be governing something that they have a direct interest in, or you'll see the same issues pop up that exist in the current MLS systems namely the numerous anticompetitive rules.
The Data Access issues might be solved by a national registry of Realtors (does NAS solve/have this - do they have a webservice the supplies this type of data?) which would be used to determine access control rights and levels to data. In other words - the user access would be anonymous (consumer, public, etc.) or a NAS member... something along those lines. Again - I don't fully understand Access issues to MLS data but that's what I'm here to better understand.
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