There has recently been a huge buzz in the real estate world over a minor player with a really stupid name that has chosen to extrapolate agent production data from MLS IDX services and use it as a MARKETING tool for their own underused services,
Many say it is illegal while others say it is unethical.
Whether or not either of those accusations holds up under scrutiny in the different jurisdictions across North America is up to the courts and arbitration panels to decide.
But it certainly violates the spirit of MLS cooperation.
Multiple listing services were founded on the principle that working TOGETHER was better for both the broker and the client or customer. In a commission driven system it created both opportunity for additional exposure for both sellers and buyers, plus governing guidelines for those that choose to be members that clearly defined how the information is to be used.
There is NOTHING cooperative about exploiting production data for one’s own misguided embellishment.
And to claim that “transparency” is better for the consumer doesn’t fly in this obvious and blatant act of self-promotion.
If this privately held company wants transparency, then let us have a look at your P&L statement.
My guess is that the venture capitalists are going to be digging DEEPER into their pockets over the next few months trying to defend this unscrupulous practice.
Serves them right.
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Richard - Did you see Alan May's post on this yesterday? It certainly is stirring up a storm of controversy.
Richard, I cannot understand why the information would be published when there is missing data. It looks bad on their part.
Cooperation is something we all should have learned in Kindergarden. Some did and some didn't.
Guess I missed this.
But in my book, a half truth is better known as a lie.
Richard , in hard times people tend to do things that in there minds they can justify.
They don't find out till later whether their actions were right or WRONG.
Enjoy the day
Gail...
I read all of the posts on this topic. I called my MLS compliance department this morning and was put on an indefinite hold. I wonder if the groundswell has started? Thanks so much.
Wanda...
Because it isn't about facts, it's about creating a self-promotion opportunity. They don't care whether or not you even see the agent data. ... they DO want you to see their agen't faces. Thanks.
Richard, this is a problem I have heard over and over since I got into the business. Nothing makes it right but I think from past experiences most often it is some young gun-ho new licensee who hasn't learned the rules yet.
I have talked to a few local agents and there is a stir going on even with them. (NON AR members)
Richard,
Apologies for recycling, but I am going to re-post my comment on Loreena Yeo's re-blog of Pacita Dimicali's post:
What a mess.
False puffery regarding consumer service and "transparency" set aside, it seems obvious to me that a marketing party offering others' personal data for self-promotional purposes should completely shoulder the burdens of accuracy and integrity, both ethically and legally.
Oh, yeah.... I certainly agree with you concerning the violation of spirit of cooperation.
I missed this too..but thanks for sharing it...and, on a lighter note, your photos are always soo great!
I went back and found Alan May's post, and now understand what you are talking about. Doesn't seem like a tactic that will work long for Redfin, since most MLS's prohibit the redistribution of their proprietary data without proper attribution, etc. As the various MLS's deny Redfin, it will die of starvation. I gotta think they knew this would happen, and just wanted the publicity bump for as long as they could get it.
I'm not aware that the production data was extrapolated from the IDX database. It would be exportable from our MLS, but not from the IDX from my MLS.
Our IDX shows the "Listing Broker" on the IDX listing reports, but once the property is sold, the listing is not accessible.
Diane...
And saying in advance that it is going to "ruffle some feathers" makes it clear that they don't really care who doesn't like it. THX
Tim...
Just enough truth to help them in their self-service. Thanks.
Don...
And they often live to regret it. Thanks so much.
I can see why there is such object and strong anti movement against this type of publication. A very poorly thought out and poor trend for decisions to permit!
Richard, you have done a lovely job of expressing my feelings. I would not have been so eloquent!
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Richard ... I just learned of this from your great blog! Thanks for brining it to everyone attention. I'm surprised and agree with you, it's not cool!
Hello Richard,
Yes, I agree with you, it is a problem. And it is kind of sad to see... I would expect the adults would learn how to cooparete.
Thanks for sharing.
I told my broker about this when it was activated (and then taken down hours later).
He told me that what they are doing is "taking the IDX feed and using a program to sort in ways that are not available to us because we have agreed that MLS wouldn’t be used for competitive purposes. This doesn’t stop 3rd parties from doing this. That’s how I was able to get stats re: Sales by agents selling in a certain city. (It is a broker piece of TrendGraphix.)"
I have no ideaa why the various MLS boards don't close them out. They can't be paying that much for membership?
Richard, having just received my bill from one of the MLS's I have to use, this just aggravates me to no end.
Although the company with a really stupid name is not in CT, I still feel very strongly about this. Something I pay good money to use should be very careful about how they release that information.
OK, got that off my chest.
Richard -
Here's the money quote right here:
"If this privately held company wants transparency, then let us have a look at your P&L statement."
BINGO!! :)
I admire your fish! I assume you took the photo?
As for the issue at hand, the courts have consistently forbidden the MLSes to deny anyone access to their data. It makes no sense to me but we'll see how it plays out.