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.
Local real estate associations play a crucial role in supporting agents and brokers, providing services that range from professional development to community engagement. But how do members perceive the value of these services? Our recent survey of real estate agents and brokers reveals valuable insights into which offerings resonate most and where associations might refine their focus to better serve their members.
After receiving about my 15th call is as many weeks from a distraught Association Executive telling me they just been fired, mostly for irrational and indefensible reasons, I just had to get my thoughts down to see what we can do to fix this systemic problem. I wrote an article entitled Why are so many of our strongest Association Executives getting fired?, about the ill-fated careers of many amazing Association staff leaders.
Now that the attorneys have been awarded nearly $1 billion, I believe we are going to see a lot more attorneys come out the woodwork to try to find additional vulnerabilities in our policies and procedures/traditions. I believe the attorneys and DOJ are just getting warmed up. Here’s one potential vulnerability that keeps me up at night….
