Speculation and misinformation about the 10 Coldwell Banker offices which left the nation's largest local multiple association-run MLS, MLSNI, in favor of a smaller broker-owned MLS called MAP have gotten so out of hand, that Peggy Keyser, CEO of The Realtor Association of Northwest Chicagoland has issued a fact sheet to quell the rumor mill.

The brewhaha started when President and Chief Operating Officer of Coldwell Banker Residential Brokerage, Doug Ayers, who oversees 70 NRT Coldwell Banker Residential Brokerage offices and more than 3900 sales associates in the Chicagoland, Northwest Indiana, Southwest Michigan, and Southeast Wisconsin areas, pulled 10 offices out of MLSNI, and put them into MAP.

Ayers explanation to Realty Times was, "We have a responsibility to keep that data (listing data) in proper use. The age of information has created some exposure opportunities for it to get out of hand. The consumer is going to say, 'We are giving you this information to market our property - not to be used for valuation models or moving services. That wasn't our intent.'"

In short, he says, "I was uncomfortable. Our job is to promote and market properties and to bring buyers into these homes. MAP fits more in terms of data control and our responsibility to the client, but we also have to look at the ability to attract brokers, so the exposure to the brokerage community can be the same at MAP."

Among the rumors circulating are that Coldwell Banker corporate is pulling the strings and has a master plan to pull out of MLSs across the country, which Cendant spokespersons deny.

"It was totally a local business decision," says Mark Panus, spokesperson for Cendant. "Don't read into it one way or another. It was made by the operating officer, Doug Ayers, who was quoted in the story with his reasons. He probably apprised NRT management of where he was going and why, but process-wise, that is his local decision. These are strong local leaders who know what they are doing for their markets, and what works in Chicago is not guaranteed to work in San Francisco or New York."

Cendant leadership from Real Estate Division CEO Richard Smith to Alex Perriello, president and CEO of Coldwell Banker Real Estate Corporation, has expressed internal and public concern over the way real estate listing data is presented on the Internet, from the attractiveness of listings and their marketability to consumers, to the way listings can be turned into lead generators for persons other than the listing broker and agent.

Aggregation of real estate listings has been an expensive proposition that has contributed to bankruptcies, illegal activities, and the attempt to rewrite state law by some entities. In the extreme, a Department of Justice investigation is delving into possible antitrust issues brought on by disagreements between the National Association of Realtors and some real estate companies as to whether or not brokers have the right to control what happens to listings once they are submitted to a local NAR-affiliated association MLS.

The issue is contentious, and that's the crux of it. MLSs are either operated by real estate associations which report back to the National Association of Realtors, or they operate at the direction of those associations, or they are independently owned and operated by participating brokers.

Does 10 offices leaving the country's largest MLS in favor of a smaller broker-owned MLS have national implications?

It could. But only if brokers decide at the local level, as Ayers did, that for some reason, his offices are better off with a broker-controlled MLS than one controlled by associations.

So the real story is - why would any broker pull out of a local MLS? Ayers says its about protecting the data from profiting others besides the home seller, and there's no reason to disbelieve him because there's no evidence to support further speculation. For example, if this were a master plan by Ayers, why weren't all 70 offices under his control pulled out of all MLSs that weren't broker-owned? And if it were a franchise initiative, why haven't there been reports of other Coldwell Banker offices pulling out of association-run MLSs and joining broker-owned MLSs across the nation?

"There have been facts and rumors circulating about Coldwell Banker offices leaving MLSNI. Here are the facts, as of Tuesday, March 23, 2004 at 3:00 pm," writes Peggy Keyser, CEO, Northwest Chicagoland Realtor Association:

• FACT: Effective March 18, 2004, ten Coldwell Banker offices on the North Shore withdrew their participation in the Multiple Listing Service of Northern Illinois (MLSNI). The ten offices are located in Deerfield, Glencoe, Glenview, Highland Park, Lake Forest East, Lake Forest West, Northbrook, Wilmette, Winnetka North and Winnetka South.

• FACT: These ten offices have decided to exclusively use the MAP Multiple.

• FACT: This decision does not affect any of the other corporate owned Coldwell Banker offices, or the Coldwell Banker franchise offices. The balance of the Coldwell Banker offices listings will be accessible through MLSNI.

• FACT: The agents in these ten offices have retained their Association membership so they can continue to use the term REALTORŽ. Access to MLSNI is totally separate from membership in an Association. An AGENT NUMBER is assigned to each new REALTORŽ applicant; in most cases, the agent number is also used to access MLSNI.

• FACT: Agents who are members of MLSNI offer and can expect to receive compensation through a unilateral offer of cooperation and compensation, entered into when joining MLSNI. Agents who are NOT members of MLSNI must make compensation arrangements with the listing agent.

• FACT: Coldwell Banker has not withdrawn membership in MLSNI for any of its offices located in the other nine REALTORŽ Associations that comprise MLSNI.

• FACT: No other real estate company has withdrawn membership in MLSNI in any of the ten REALTORŽ Associations that comprise MLSNI.

• FACT: MLSNI is owned by ten REALTORŽ Associations: the Aurora Tri County Association; the Chicago Association; the McHenry County Association; the North Shore Barrington Association; the Oak Park Board; the REALTORŽ Association of NorthWest Chicagoland; the REALTORŽ Association of the Fox Valley; the REALTORŽ Association of West/South Suburban Chicagoland; the Three Rivers Association; and the West Towns Board.

• FACT: MAP is owned by real estate companies who have purchased an equity position.

• FACT: As always, we will keep you posted as more facts are known.

Additional facts not supplied by Keyser, but certainly relevant to burst conspiracy theories are:

• FACT: MAP is open to subscribers as well as broker-owners.

• FACT: MAP does not allow repackaging of listing data, even to broker members.

• FACT:MAP is a not-for-profit MLS.

• FACT: Coldwell Banker Residential Brokerage isn't the only large broker to join MAP.

Published: March 25, 2004

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