The MLS of the future

[photopress:futurama_bender.jpg,thumb,alignright]Recently, the Center for Realtor Technology and Jim Duncan’s Real Central VA had blog posts on the desire to have MLSs’ add another column to their schema that indicated the broadband access status of a property. I think this is an idea whose time has been a long time coming. When I moved from my old home in Carnation to my new home in Issaquah, the new owner of my old house wanted to know everything I could tell him about the home’s local ISP (I believe he was a network engineer). Similarly, one of the major reasons I moved into my current home, was that it had bandwidth to spare (my ISP’s top of the line plan is currently 8 M download / 2 M upload speeds). In the Emerald City or the Bay Area, this information is probably second in importance only to the list price of a home or its location. Simply put, a home’s high speed internet capabilities is an increasingly important factor in your purchasing decision.

However, as long as the MLS DBA is mucking around with database schema and typing in ALTER TABLE Residential ADD Internet varchar(50) and other SQL DDL commands, why should we stop there? Here’s what I’d like to see when the MLS gets around to enhancing it’s database schema.

Use Links. Why not enhance school, local government, builder & utility information in the MLS to have both names and urls? When I move to a new home, usually the first thing I need to do is contact all the local utilities and let them know I’m in a new place. Having links to Puget Sound Energy, Issaquah School District, Specialized Homes, and King County Government in the MLS would save me time. Finding contact information and phone numbers is a much bigger pain than it should be at times.

Cell phone reception information. If you don’t have good cable or DSL internet access, knowing how strong Sprint’s or Clearwire’s signal is would be nice to know. I suspect real estate agents and other professionals that increasingly depend on wireless internet access would find this information very helpful.

More accurate and fewer errors. OK, I’ve complained about this before. Still, is it really too much to ask? If a property doesn’t geocode, somebody may not find it when they use a popular map based real estate search engine.

Embrace RETS. Enough said.

Richer media. OK, so the MLS allows you to upload 10 or 20 small photos (or whatever the number is). Why not allow larger photos, MP3 files, video files or PDF flyers? As broadband takes over the world, the stuff is a lot more practical. Although, the idea sounds nice in theory, I’m not sure agents are ready to hire professional audio engineers or videographers when many haven’t learned the value of high quality photography yet. I also think the MLS IT infrastructure isn’t ready for this kind of load (frankly if you can’t handle the bandwidth demands of digital photography, you should probably outsource to Amazon S3 or Flickr Pro before it’s too late), and it’s going to make life more a lot more interesting for us IDX vendors.

So, if you could change the MLS database, what would you like to add or change? What information do you wish was there, but isn’t? Is built green home information and information on low flow toilets something today’s home buyer wants to be able to search for? Do you think more information would pose an undue burden on agents or brokers (those MLS listing forms are one step removed from a tax return), or do you want more, more, more? What would you like IDX vendors to do differently, regardless if the MLS changes or not?

Death by a thousand paper cuts

[photopress:papercut.jpg,thumb,alignright]Every once in a while a realtor or broker from out of state will ask me to develop an IDX web site for them. Unfortunately, supporting a new MLS is very similar to supporting a foreign language. It is a large software engineering task that takes a lot of time, and since I don’t already have the code written and don’t already have access to their MLS’s feed, I inform them that time is money and the conversation usually ends there. Someday, that may not be the case, but I’d rather be small & profitable than large & broke.

The problem is made worse by the fact that many Realtors don’t know what format or protocol their MLS uses for data downloads or even who to contact in their MLS to get a feed for an IDX vendor. If you ever want to change IDX vendors, hire a software engineer or are crazy enough to do it yourself, you should know this. Knowing how your MLS distributes your listing data is like knowing how to change the oil in your car or how to defragment your hard drive. You don’t have to know, but it’s good to know. It may seem like I’m ranting about some MLS techie mumbo jumbo thing again, but it is preventing the industry from taking advantage of the low cost IT innovations that could be. I don’t think folks fully appreciate the challenges that an IDX vendor faces and how those challenges are retarding the industry’s growth and health.

For example, the NWMLS (Northwest Multiple Listing Service – serves mainly Seattle, WA and western Washington) uses software from Rapattoni. It provides listing data via a proprietary SOAP interface and all the photos are accessible via an FTP server. Listing data is updated constantly (a new listing usually appears in our feeds about 15-20 minutes after it’s been entered into NWMLS by a member as I understand it).

By contrast, EBRD (East Bay Regional Data – serves mainly Oakland, CA and the east bay area) uses Paragon by Fidelity MLS Systems provides it’s listing data via nightly updated CSV text files, down-loadable by FTP. The new and updated listings images are accessible via ZIPed files via FTP. The photos for active listings which haven’t been recently added or changed are not available (unless you bug the IT dept).

The only way they could make their systems more different is if the EBRD encoded their listings in EBCDIC! In order to support both, I need to develop 2 very different programs for downloading the listing data onto my server, importing the listing data in my database, dealing with differences in the listing schema (for example, the EBRD doesn’t contain a “Number of Photos” field or a “Community Name” field), dealing with differences in the photo location downloading (the NWMLS stores all photos in an uncompressed format in one of a thousand sub directories while the EBRD just stores the fresh photos in one big zip file). So I can spend my limited time improving my software for new markets (that have no customers) or improving my software for my home market (which has paying customers). Unfortunately, given the current market realities I can only afford to support my home market at this time since MLS IDX programs can be very different and there is no place like home (so far as I know anyway).

I keep waiting for RETS to save me from this madness, but until it happens in Seattle or the East Bay, I’m not holding my breath. After all, if two of the larger MLSes in the country in the two most tech savy areas of the nation don’t support it yet, I interpret it to be a vote of no confidence. I suppose, RETS could be going great guns in the rest of the country, but if it was, I’d expect the NWMLS & EBRD to be all over it, like the establishment on Redfin.

The Center for REALTOR® Technology Web Log, paints a rosy a picture regarding RETS deployment in the industry. Unfortunately, according to Clareity Consulting, an IT consulting firm that serves MLSes and other parts of the real estate eco-system, RETS is the NAR’s unfunded mandate. Although, everybody wants the benefits of RETS, nobody is willing to pay for it. Furthermore, it appears back in days before I got sucked into real estate technology, there was an effort to promote the DxM standard and that went nowhere (which is a bad omen). What’s worse is that they keep moving the goal posts. We don’t even have widespead RETS 1.0 support, and they’ve already depreciated that standard going full bore on RETS Lite and RETS 2.0. It seems the biggest problem is one of vision and scope. They keeping adding more features to cover more scenarios, when we don’t even have wide deployment of the existing standard (assuming that we had standards to begin with at all). It reminds of the recent software industry debacle that is known as “Longhorn reset“. The problem is that RETS is just too complicated, in an environment with too many legacy systems in place, too few resources to support it, and excessive aspirations. The idea of RETS is great, it’s the implementation and deployment that’s disappointing and at least Microsoft pulled Vista out if it’s death spiral…

[photopress:pappercutter.jpg,thumb,alignleft]The sad thing is that computer industry already has great tools for moving data around over the Internet in efficient and well supported (if sometimes proprietary ways). They allow you to query, slice, and dice your data in a near infinite number of ways. They’re called database servers. They are made by multiple software vendors and there are even some excellent open source ones out there. They let you set permissions on what accounts can see what tables or views (gee, sounds like something an MLS would want). The better ones, even have this level of security to the field level. Even better, most of these so called database servers have the ability of exporting data into spreadsheets, reporting tools, and even GIS systems. All of them provide a well defined and often times well implemented API that software developers can use and exploit to implement what hasn’t been invented yet!

Why doesn’t the NAR & the MLSes save us all the trouble, standardize on a few good database platforms (I’m a fan of MS SQL Server and MySQL, but I’d settle for anything that has ODBC, .net & Java support at this point), and provide everybody RDBMS accounts? It’d lower the cost for us IDX vendors (less code to write, since everything is just SQL), it’d lower the costs for MLS vendors (since data access, security, programmability, and scalability is now the RDBMS vendor’s problem), provide more choices for agents and brokers (since getting Excel talking to MS SQL Server is a cakewalk compared to RETS) and it will lower IT costs for the MLS (because the MLS vendors don’t need to invent an industry specific solution to a problem that’s been largely solved already and I’m betting that the MLS vendors already use somebody else’s RDBMS to implement their solutions anyway). Granted, a SQL Server won’t enable all the scenarios that RETS wants to enable (if RETS was ever well implemented and widely deployed enough for that happen). However, I’m of the belief that it’s not going to happen until after Trulia or Google Base becomes the de facto nationwide MLS by providing a single schema with a simple REST like web services interface.

So, what does your MLS do to support IDX vendors? Do they provide all the data all the time, or just daily updates? Have they deployed RETS yet? Are they going to? Who is their MLS software vendor or do they have a home gown solution? What do you want to do, that you can’t do today because the data is in a format that you can’t use easily? Would you be willing to pay more in membership dues for better software or better service from your MLS? Are we at the dawning of the RETS revolution, or is it too little, too late?

PS – Anybody, know anybody from an MLS / IDX dept or MLS vendor that blogs? I’d love to know what things are really like on their side of the listing data fence.

Talking Up Shackprices

[photopress:galen_ward.jpg,full,alignright]Nathan of nPost just did a great interview with Galen on Shackprices… Lots of gold including some indication of Galen’s vision for the future for Shackprices!

What is your long-term plan for ShackPrices?

I would really like ShackPrices to be a national real-estate search website. Our goal is to make it for anyone in America to search for a home. The plan is national coverage, more features, and a better site for people to search for a home with.

Don’t stop with this quote… Go read the whole thing! 🙂

Commission double-take

Ok, for those of you thinking from the title that I’ll be going back to the subject of dual agency and taking a seller and selling side of a commission this is about something else. What I’ve got a question about as well as a big concern right now is that I just got mutual acceptance on a deal for a client and I’ve just noticed that the listing agent has changed the commission on the listing data. It was at 3% on the day my clients saw the house and now, tonight when we got MA, it is at 2.5%. Anyone have an idea how the local MLS views this kind of thing? I have a feeling that she changed it just because an offer finally came in (it was full price on a big price tag) and as of 01/06/2007 it was at 3%.

[photopress:washer_dryer_photo.jpg,full,alignright]Considering the listing agent screwed up and had posted a washer/dryer as part of the listing also and then she couldn’t work that problem out with her client (happens to be her father-in-law) I was planning on using part of the commission to buy a set for my clients. That may be shot now with the reduction although (the set they want is $2600) [photopress:pennies.jpg,full,alignleft] but I’m planning on pointing out the change and requesting that she pay the amount she originally noted and submitting the printed copy of the listing as my documentation with the disbursement form. The MLS rules as I see them state that the “commission shall be paid as designated in the listing (or any change thereto).” Which this could mean that I’m hosed the money, BUT, I can’t tell if she changed it before or after we got mutual acceptance – which I find to be a possible ethical violation if it was the agent’s choosing. Furthermore, which rate would apply if it was changed after the fact? The same section of the rules states “consent required to change other member’s commission”. I’m pretty sure the seller or the listing agent decided to drop it when faced with an offer and for no other reason than to save the money even though this has been the SOC for months – this place had been on market for over 100 days. Anyone got a clue on this one?

Condos off to a busy start

(Editor’s Note: Today is another great day as I get to introduce Matt Goyer as the newest contributor to RCG. I’ve been following Matt’s Urbnlivn website for quite a while and I’ve always been impressed. With urbnlivn, Matt has managed to collect, organize and republish an incredible amount of local condo knowledge. However, if you decide you need more than condo information from Matt, then check out his personal blog, his more general real estate blog, or his contributions on the Redfin’s blog. While I don’t want to pigeonhole Matt into only talking condos, our current plan is to have him synthesize the great condo research he does on Urbanlivn and bring it to RCG on a regular basis. Matt can be reached at mail *at* mattgoyer *dot* com or by leaving a comment below!)

Relative to all of December it was a busy week this past week for new condo construction in Seattle. What made the first week of the new year so busy was three new events on the calendar and lots of action on the MLS.

Three new events

January 9 at 7pm, the POWHat, a community association, is hosting a discussion about proposed condo on Pine. This is the development that started the death of Pine/Pike meme and has been written about in The Stranger, The Seattle Weekly as well as The Seattle PI. Written about not because the developers paid to get in the Saturday New Homes section but written about because it is replacing the independent bars and restaurants which the condo’s marketing people love to tout as the reason why you should move to Capitol Hill. So I’m looking forward to seeing what is replacing the Cha-Cha, Bimbo’s Burritos, the Bus Stop, and Kincora because without those four institutions it’s going to be hard to market this project.

January 18 at at 6pm, Trace Lofts will host their buyers preview. We’re all looking forward to unraveling the mystery that is Trace Lofts. At least no one is upset about this development, yet.

January 19 at 5pm is Decatur Condominiums grand opening gala. Decatur is a conversion originally designed by the Space Needle’s architect. Now the invitation doesn’t mention whether this gala will be black tie or not. I’m assuming no since, I don’t own a tux and the units are supposedly all under $500,000 (people who make less than six figures likely don’t down their own tuxes, right?).

Active week on the MLS

At the beginning of last year most new condo developments shied away from the MLS. But then in the fall as the market slowed more developments listed their inventory hoping to attract more attention. Then towards then end of the year we started seeing price reductions and buyers bonuses; presumably to move inventory before year end. Now that the new year has started prices are increasing and I’m sure we’ll see fewer buyer bonuses.

To start us off, Noma first increased the prices on the 3 units it had on the MLS and then listed the rest of their inventory which is 19 units. They now have 22 listings on the MLS ranging in price from $222,950 to $539,950. I imagine they’re a little frustrated watching Canal’s success.

Olive 8, the development which added 3 floors, had 10 price increases ranging from $20,000 to $50,000. What is odd is that the increases range from 1.5% to 5% and seem fairly random.

9 units from Press 2 were listed. Press is a two phase development originally built as apartments. The first phase was an occupied apartment and has since been converted, phase two was never occupied and renovated.

4 units from Trio came online. Trio is unarguably Seattle’s biggest condo failure with only 28 units sold of 113 in over a year. Glad to see they’re coming to their senses and making their units more accessible to all the users of the MLS. Hopefully this gets them a little more attention in the New Year.

If you’re interested in following the day to day activity in the Seattle condo market be sure to check out Urbnlivn or check back here next week for my weekly updates.

No Public MLS Site?

I just received an email that says, “San Francisco, CA – December 1, 2006 – The San Francisco Association of Realtors will remove public access to its MLS site as of January 1, 2007.”

It’s actually an advertisement of some kind suggesting that without the Public Access Site provided by the MLS, every broker will need their own, now more than ever. Robbie…Galen…there’s a heads up for you.

I thought NAR required that every MLS have a “Public Site”, albeit a crappy one. Anyone know if that rule changed?

Photos that tell you something

Further to Galen’s post on photos, I like shots that tell you something. We have a 15 photo max, so that usually leaves room for more than just the obvious. Photo number one MUST be an EXTERIOR shot, per mls rules. And NO PEOPLE allowed. They seem to be Ok with pets…until they get one of those Boing-Boing shots. That will make for a “New Rule”.

This one of Soze (So-zay) saved me from the many calls I usually get, asking if the condo association permitted dogs :-)[photopress:tr.jpg,full,alignleft]

[photopress:ar.jpg,full,alignleft]

This photo brought 20 people the first day, and two offers. At least half of the people who came to the first Open House said the free standing archway photo grabbed their attention and prompted them to come.

Is Trulia totally clueless?

In a post I’ve been meaning to blog about, Trulia asks Is the MLS Totally Clueless? Why is “the MLS” totally clueless (they mean all 1,000+ MLS systems)? According to Trulia, because they don’t allow For Sale By Owner properties to be shown alongside MLS listings. (Is Trulia right, is this dumb? Probably, but I’ll leave that for another discussion.) What is Trulia’s solution? They don’t allow For Sale By Owner properties to be shown alongside their broker listings (see answer number 1). Sounds like someone shouldn’t be throwing stones.

Will Trulia ever allow FSBO listings? My guess is the moment that Trulia gets enough traffic for consumers to care if their house is listed on Trulia, the tables will turn on the brokers they are so eagerly courting right now. FSBO: check. Smaller links to broker sites: check. Data added by users: check. I don’t think they’ll do this out of greed, rather they’ll do it because they have to: if they keep the site the way it is, with limited information about properties and links to agent sites, the rest of the industry is going to pass them by.

Note: Trulia is not a member of “the MLS” and does not need to follow any MLS rules. There was some reader confusion about this.