Securing the Post-settlement MLS Value Proposition

By Joe Schneider | March 15, 2024

This morning, the National Association of REALTORS® (NAR) announced a $418 million proposed settlement on a handful of lawsuits across the US and agreed to make significant rule changes that will impact all MLS and REALTOR Associations nationwide. 

 

Specifically, NAR has agreed not to create rules that allow listing agents to set compensation for buyer brokers. Offers of compensation won’t be displayed in the multiple listing services. 

 

Additionally, this settlement also places a blanket ban on the longtime requirement that agents subscribe to multiple listing services in the first place to offer or accept compensation for their work.

 

While the varying settlement scenarios have been discussed for many years, the industry finally has a rough framework for the future. 

 

What does this mean for Organized Real Estate? 

 

It is important to point out that the MLS will always be the source of truth for real estate data in a given local market. 

 

However, with the ban on the mandatory membership requirement, the question now becomes whether or not an MLS/AOR simply serves the market by being a data repository for non-member practitioners or a driving force behind their member's success. 

 

The industry must ask themselves, why would a real estate practitioner choose to be a member of my MLS when it's not required?  How do I ensure my organization delivers the right value to my members? How do I define that value and then set up the right steps to provide that value?

 

Since our inception, this question has been central to Modern.tech’s consulting and product strategy. We have been delivering innovative solutions via strategic plans, specified technology and consulting initiatives for organized real estate that consider national perspectives and best practices from inside and outside the industry. 

 

With this frame of mind, we can help your MLS navigate the post-settlement landscape and, more importantly, help you build and grow your organization to become the cutting-edge example of a modern and streamlined MLS. 

 

While the entire industry is certainly anxious, Modern.tech is working hard to secure the MLS value proposition. We will be unveiling these initiatives soon and are excited to work with you to tackle the next phase of industry transformation.