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It's About the Broker, not the MLS, Says a Traverse City Broker

Editor's Note: In response to the firestorm generated by Real Times' report - North Michigan Brokers Take Control of Listing Data, Real Times is not only posting e-mail responses from readers, we are featuring additional stories on the topic. The editors feel that the power struggle between MLS organizations, REALTOR® organizations, brokers, and third-party information system providers is a story worth telling. The real estate industry is at the brink of major change and the Traverse City brokers are a strong indicator of changes to come. For that reason, we are highlighting this response from Lee Bussa, a Traverse City broker.
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I am a long-time broker, and the general manager of Real Estate One. I was the first executive officer for the Traverse City Board, and one of the participants in the original Boris system which was born right here in Traverse City, long before Moore Data purchased the system. We came up with the first MLS system for our area. That's why when I talk, people often pay attention.

When it comes to technology, other brokers tend to listen to me. I am keenly interested in it all.

The real story is that this town is coming to grips with technological changes taking place. Whenever you have change, you have conflict, but we are making progress.

Our organization (Traverse Area Association of REALTORS® has always have been progressive, but right now we are engaged in large debates. Your story was one person's perspective. Kevin Fowler is bright, he's a local resident, and his wife is on the board. He is always talking about new technologies. Our board has ignored him and made it difficult for him.

The brokers are more open to vendors because we use technology every day and we know how it can help us, so we have been more open to having him visit us and talk to us about XML. His knowledge of MLS Internet operations is great. The majority of the large brokers (a large Coldwell is number one in volume and we are second in volume, RE/MAX, Prudential and Better Homes and Gardens) have principals who have embraced Kevin's technologies. For over eight months, he has taken our listings and displayed them and he has been an ISP. He has been working with the "Tahoe Guys," OpenMLS and XML. He has piqued our interest and I have tried to look at it thoroughly. These are good for MLS uses, and the technology will enhance the broker to move information around his own network.

We have a Boris "Maestro" system. About three years ago, we went to Maestro, and we didn't know how long it would be good for. There were dissenters, of which I was one, but we made the best of it. Now there are technologies that are available that we simply can't get on the Maestro system. That doesn't mean we intend to disable it - we just want to take advantage of any new technology.

This has created an adversarial relationship. When the Internet started to get attention - and other service providers came on the scene, the NAR tried to keep hold of that data. There were discussions about proprietary rights. Our boards are trying to keep that data tied to themselves.

That fostered an atmosphere that made it difficult for people like Kevin to work with them. As our national board is getting more comfortable with third party service providers, it is beginning to filter down to the local boards. Now we are moving toward experimentation.

Judith (TAAR's EVP) has been very competent and capable. But things have changed. It used to be that the real estate boards served Ma and Pa brokers, and they were able to do a lot of things that the small shops couldn't do for themselves. Now most brokers are part of large organizations, but the MLSs haven't changed their perspectives on how to serve their members.

They don't have the same power they once did, and the boards are having to back down from their prior positions of telling agents and brokers what to do. Now, brokers are becoming more educated. I watch the board meetings, and more principals are attending and taking an interest.

The attention is shifting back to the broker. Technology is changing everything. I am trying to minimize any regulatory activities on the part of the board directed at the control and ownership of listing data. We are trying to facilitate access to our MLS database by broker-approved third-party aggregators. We are making it easy for Kevin to do that.

That's why the proposed by-laws giving ownership of the listing data to the board are not going to happen. We did some strategic planning to give the brokers more power over the MLS, possibly even a broker-controlled or owned MLS.

By experimenting with Kevin's products, we aren't attempting to overthrow the MLS, we just want to be current. Because of his understanding and the fact that it is almost no cost, it is very easy for us to experiment and learn. What I have seen is that we need this and this is what were are evolving to.

Judith did say our XML solution was two years away. I was there. I heard her. We're saying the brokers aren't waiting. We are embracing the new technology.

The MLS is not moving at the pace that the brokers would like to see them move. Judith is highly thought of by most NAR people, but the association perspective and the brokers' perspective are different. She has an association agenda, and the brokers have a different agenda. The association is no longer going to be a "defacto broker." The boards no longer dictate what we do.

When the by-laws appeared in front of us at a meeting one day, I didn't know where they came from. We had a board of directors meeting, and we asked where it came from. It didn't come out of the MLS, nor from the board. That only leaves the staff organization, so I suspect it came from Judith. But the by-laws were rejected out of hand. It never went anywhere and it won't go anywhere.

She has to account for that.

The tail doesn't wag the dog.

Published: March 26, 1999

Use of this article without permission is a violation of federal copyright laws.


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Editor's Note: This article reflects the opinions of Lee Bussa only and not necessarily the views of this or any other publication, organization or Website owner.



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