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.
While understanding your organization's value is essential, making a well thought out decision to sell is far more complex. The smartest MLS leaders are preparing now—before an unsolicited offer lands on their desk.
The real estate industry is in a state of constant evolution. Policies shift, technology advances, and consumer expectations continue to rise. For local MLSs and real estate associations, staying informed on these national and global changes isn’t just a nice-to-have—it’s essential for survival and success.
Valuations aren’t just for businesses preparing to sell. They’re a strategic tool to help MLSs make informed decisions, plan ahead, and uncover areas where they can grow stronger. Whether you’re considering a change or just trying to run smarter, knowing your value is essential.
The conversation around an Open MLS model is gaining traction, particularly among real estate professionals who hold active licenses but are not members of local, state, or national REALTOR® associations. These licensee-only practitioners represent a largely untapped market for MLS growth. By quantifying this opportunity, MLSs can make informed business decisions about adopting an Open MLS strategy.
One of the best places to learn from fellow educators and education consultants is to attend The Bringing Educators & Associations Together for Success (BEATS) Conference. The BESTS conference is the premier event of the year for Real Estate Education Directors, Event Planners, and Speakers. Designed to foster collaboration, innovation, and professional growth,
NAR membership trends have historically followed the economy and the strength of the overall real estate market. As shown in the attached chart, NAR experienced significant membership growth following the market crash of 2008 to 2010 and continued on that growth trajectory until recently when the real estate market slowed significantly because of high interest rates and more limited buyer demand. While there have been minor decreases in membership since 2023, we hypothesize that these declines are more likely due to limited market opportunities and retirements rather than the rise of Open MLS subscription offerings.
For decades, real estate associations have traditionally owned and operated MLSs, providing brokers with access to property data while generating revenue from subscription fees. However, a growing movement is challenging the status quo, advocating for brokers—who supply both the data and the subscriber base that powers MLSs—to have a greater stake in ownership and profitability.
The fear of an Open MLS is largely unfounded. The experience of states that have embraced this model proves that associations can thrive without requiring NAR membership for MLS access. By focusing on value-driven membership, enforcing professional standards through MLS regulations, and embracing industry evolution, associations can secure their future while fostering a fair, competitive market for all licensed professionals.
For real estate associations, the employment contract of the CEO serves as a critical foundation for setting clear expectations and ensuring mutual accountability.
While the MLS has evolved into a technology company over the last several decades, the leadership and governance structures of these independent entities have lingered in their REALTOR association roots.
Today, local Associations provide lockbox access only to their local members. Some provide 1-day access codes with an additional cost to those outside of their territory. Others flatly refuse to provide access to members of other associations or MLSs they deem competitive. In Louisiana, for example, there are three markets equidistant from one another. Two of the three have agreed to provide reciprocal access, yet refuse reciprocal access to the third.. This type of anti-competitive behavior is completely counter to earlier proposed agreements with the DOJ that required statewide lockbox access to all licensees.
