Over the years, there have been hundreds of millions of dollars invested in research and development by software companies attempting to bring exciting new products to brokers and agents – and the overwhelming majority of the these products have failed. Why?

Time and time again, too many of these technology providers have apparently forgotten one key element. That being, real estate is essentially a local business that relies primarily on one organization as the glue to hold the entire process together: the Multiple Listing Service (MLS).

Of all of the software products that have been developed over the years for use by real estate professionals, without a doubt, the only tool that the vast majority of brokers and agents use on a daily basis, is their MLS software. And it appears that this will continue for years to come.

Historically, the traditional role of the MLS has been to more or less serve as a data warehouse, with the agent being the gateway (both input and output) to the data. Additionally, MLSs have largely been responsible for providing technology support, training and developing local relationships with the myriad vendors involved in the real estate transaction.

But for MLSs today, all this is changing – and quickly thanks to the Internet. Tech-savvy and increasingly educated consumers are looking for different types of service, and brokers are hungry to seek out new revenue sources from their core business. For those MLSs embracing technology and thereby change, this is most certainly good news.

What we are seeing unfold each day is the next generation MLS. As part of this evolution, the role of the MLS remains central, essential and integral to the real estate process. Now more than ever, the MLS will serve as a technology partner to brokers and agents and will provide value by integrating the various tools and systems.

In fact, our view of the MLS – unlike many others who’ve said MLSs will be extinct within a few short years – is that the MLS’s role will broaden as the essential link to deliver local support, infrastructure and technology, to real estate professionals.

As MLS’ have helped the software companies deliver to the market their requirements, such will be the case for the next technologies arriving on our doorsteps. As with the introduction of Multiple Listing Systems years ago, customer acquisition (turning Internet prospects into clients) technologies will soon be a mainstay of all Realtors. A mainstay brought to the market through the efforts of leading MLSs.

With technology continuing as the central role of the MLS, MLSs will become even more prominent – but not as a developer of technology. Successful MLSs are those that will be providing brokers with platforms and tools to help sell more homes, build better client relationships and provide unparalleled levels of customer service.

Published: January 19, 2001

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