IDX (Internet Data Exchange) has quickly become one of the most talked about changes in real estate technology today. With the NAR mandate, the technology surrounding MLS listings has become a topic of heated debates. Depending upon whom you talk to, IDX is either a friend, or a foe. Some brokers love it - and some don’t. For those who love it, the transition has been easy. For those who don’t, the direction is not so clear. What are the options for Brokers when it comes to real estate technology? Is IDX the only way to go? Are there other options available?

Questions like these have sparked new movements towards additional MLS Listing Display technology outside of participating in IDX. You may have already heard about VOW’s or Virtual Office Websites. What are they and how do they work? What is the difference between IDX and VOW’s? Which one is best for you?

Data Solution: VOW

What are VOW’s and how do they work?

Virtual Office Websites or VOWs as they are commonly called are, by definition, a business model developed by some brokers “to distinguish their Internet display of real property listings from the display governed by the MLS IDX policies. The features that a VOW is most known for is the requirement that visitors give specific personal information either by registering and/or by entering an email address and select or be provided with a password prior to accessing MLS listing data. The concept of a VOW is that by requiring a registration of information by the user, they are transforming the user from a visitor to an actual customer, who, by registering is essentially performing the equivalent of walking into a physical office. By ‘qualifying’ these customers, they are then offering their entire MLS listing data on the website.

Pros: As it stands currently, because most VOWs display the entire MLS listing data, the benefits of using a VOW is that your website user is able to more freely browse all properties available within a particular area, regardless of a Brokerage’s participation, and in some cases, consent. If your technological mantra were ‘more is better’ then a VOW would be a preferred choice- especially for those Brokers located in areas where there is a very low participation in IDX. In some areas, there is a little as 30% participation in IDX. With such little participation, companies are seeing the benefit in the ability to provide all MLS listing data on their web site without using the less popular IDX method. Proponents of VOW’s also maintain that VOWs are an excellent lead generation tool because they also capture prospect information before giving away important listing information.

Cons: The concept of requiring a website user to provide personal information before obtaining the information they are seeking is often seen as a detriment to a successful website. The down side is that Internet customers are often anonymous customers who do not want to give away personal information or sign ‘user agreements’ to a salesperson they have never met; before they are even able to see what he or she has to offer them. After all, they can just simply leave the web site and find someone else who is willing to offer the information on their website at no obligation.

When to use it: When faced with the question of whether or not to use a VOW, it will really depend on your area. As mentioned earlier, some areas in the country have very little participation in IDX. This is currently the cause for many companies to seek alternative methods for displaying MLS data. If you’re in one of those areas, then perhaps a VOW is best for you. Be aware, however, that in the coming weeks and months, you will begin to see a big debate centering on the policies around VOWs and their use and dissemination of MLS data. If you’re interested in this type of data solution, you will want to keep abreast of these changes.

Data Solution: IDX

What is IDX and how does it work?

IDX (Internet Data Exchange) also known as Broker Reciprocity (BR) allows participating Brokers to display active MLS listing information on their website(s), provided that the data display conforms to the policies, rules and specifications of their MLS Board and state law. IDX is a MLS data solution that is provided to the Brokerage for use on their websites. Unlike a VOW, IDX solutions do not require that you obtain a registration from the user. Brokers can display the MLS listing data of all brokerages that have chosen to participate in IDX, so long as they prominently display the BR logos, disclaimers and appropriate distinctions between their own listings and those of another office.

Pros: IDX allows Internet homebuyers an opportunity to freely search a large amount of MLS listing information for a specific area without any obligation. By presenting this amount of information in one website, users are able to find the property(s) they’re interested in without having to visit multiple websites. Once they’ve narrowed their search, users are able to request information on specific properties, thereby creating what is considered to be more qualified leads than those of a VOW. This no-hassle form of property shopping has been viewed quite favorably among the homebuyer market segment because consumers have grown tired of car salesman-like tactics and annoying telemarketers who never seem to give up or let go when they get their contact information. In addition, as email spam continues to be a growing problem, consumers are getting ever more reluctant to give away their email address to a VOW until they see something on a site that they really want to be contact about.

Cons: As mentioned, if you have very little brokerage participation in IDX, it may not be as attractive to use it. Many VOW’s have sprung up out of the need for an alternative solution in areas where there is little-to-no participation in IDX. IDX is only as effective as the companies participating. You have to make a determination about whether or not there is enough participation to justify displaying the data on your site.

When to use it: IDX data should be implemented into your site when you are searching for a way to display a large amount of listing data on your site, and capture qualified leads without discouraging users by requiring them to give up personal information. Email spam (a.k.a. junk mail) is becoming a huge problem for email users, and because of this, more and more Internet users are growing extremely reluctant to give up their personal information. Most users will not give their email address before they see what you have to offer them, for fear that you will give or sell their information to other marketing companies. Most users have no problem giving their information once they see something in which they are truly interested.

VOW’s and IDX are both data solutions that can be very effective when used appropriately and within the right situation. Each and every brokerage is different, and their MLS areas differ as well. To make an educated decision about which data solution is right for you, be sure to weigh the pros and cons of each one, and then analyze them both within the context of your marketing objectives. If necessary, write down the goals you have for your website, and factor those goals into each option. Only then will you get a clear picture on which solution is right for you.

Published: September 24, 2002

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Chad Engeldinger is a database developer, speaker and consultant of technology for the real estate industry. He has assisted brokerages and boards in the areas of technology, networking and database development, helping them expand their business through the use of Internet applications. He owns his own development and consulting company, CyberSunshine, Inc. that specializes in the custom design and development of database applications, web sites and intranets for the real estate industry. For more information, you may contact him through www.CyberSunshine.com or e-mail him directly at Chad@CyberSunshine.com.