A decline in Association membership is one of the main fears about opening up MLSs to licensees that are not members of the National Association of REALTORS®. There are MLSs representing hundreds of thousands of agents that have been offering Open MLS subscriptions since the 90’s.
To explore whether that fear is justified, WAV Group recently surveyed Association Executives to understand the real impact of Open MLS access.
According to the WAV Group Study, the percentage of Open MLS subscribers is limited, even in markets that have been open since the 90’s. According to the study, 43% of respondents include just 1 to 3% of Open MLS subscribers. There are a small number of associations that have seen a higher percentage of Open MLS subscriptions. In some of those cases, however, Associations benefit from the revenues generated from licensee-only MLS subscribers. By offering wholesale/retail models or other types of MLS revenue shares, Association shareholders financially benefit from non-members. 
Some believe that Associations are losing members today because of Open MLS subscriptions. While a logical fear, history suggests otherwise. NAR Membership trends generally follow the economy. When the industry took a significant downturn in 2009 and 2010, NAR membership declines followed. Membership growth surged in 2018 and experienced its highest levels ever during the Covid homeownership surge. Recently NAR membership has fallen off slightly, again, likely tied to tougher market conditions. While some are worried that membership has fallen recently to Open MLS growth, actual data from Associations tracking the reasons for a cancelled membership suggests otherwise. Those WAV Group has spoken with tell us non-renewals are due to retirements, moves or expense cutting for part-time practitioners. Associations are not seeing NAR Opt-outs even though data suggests there are some that are not completely sold on the value of their NAR membership.
While every Association needs to double down on effectively articulating and communicating their value proposition, there’s no evidence that proves when an MLS opens up their subscription requirements, Association experience membership declines.
If you would like to read more about Open MLS issues or watch the WAV Group Open MLS webinar featuring MLS executives, click here –
We have written several other recent articles on the topic of OPEN MLS such as:
How Much Revenue Can Your MLS Derive from an Open MLS?
Is NAR Membership Declining Because of Open MLS?
Associations Should Embrace an Open MLS before they Get Shut Out
Is Doubling the Price for the Same MLS Services Really Open Access?
Considering an Open MLS model in your market? WAV Group can help facilitate a productive, informed discussion with your leadership team.
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