Open MLS Initiative Dies in Maine

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By: Jonathan Dalton, DaltonsAZHomes.com
Posted: Wednesday, December 5th, 2007, 4:01 pm MST
Category: General Information

The details soon will disappear behind Inman’s subscription filter but the basic gist is Dave Barry has pulled the plug on his Open MLS initiative for lack of funds.

For those who had not heard of the initiative, here’s what I wrote 14 months ago on Active Rain about it:

But there is a dollar to be made in offering alternatives to the Multiple Listing Service … and Dave Barry is reaching for it with both hands with his Open MLS initiative.

There are multiple sources for detailed information on the Open MLS so I won’t repeat them all here (i will say Barry runs high and loose with his definition of “illegal” but rhetoric is rhetoric). But the basic premise is compelling sellers to list their homes on a nationwide listings database - a prettier craiglist, for the most part - which would be operated by a company receiving compensation for operating costs. (There is the dollar to be made.)

The ballot initiatives Barry has sponsored don’t indicate the seller will be compelled to list their homes - the phrasing is that we evil real-estate agents can’t hide these listings in MLSs with thousands and thousands of members, without mentioning the seller ultimately decides how and where a home is listed. But that wouldn’t sell nearly as well. Neither would indicating the simpler solution, should he really believe requiring NAR membership is the issue - turn the MLS over to the brokers.

Originally the plan was to get this initiative on the ballot but there weren’t enough signatures. Same goes for 2008.

Could it be the lack of signatures signals a lack of interest? Nah.

Oddly enough, the article indicates Mr. Barry now will turn his attention to “online tools for real estate professionals and consumers that he said will support the aim of the Open MLS initiative.” This site will feature “cost-effective” lead generating tools as well as tools for the public to compare agents.

The rates that Barry said he has seen charged for leads in the real estate industry appear to be “higher than you find in other fields,” and “I think it represents a lack of competition in the marketplace — agents should be able to get a stream of business without having to pay such high lead-generation fees.”

Of course there are multiple streams of business available to agents willing to put forth the effort. Only the chronically lazy or hopelessly stupid still are paying for leads these days. And if there’s a lack of competition it’s because most of the vultures in that business have dropped out for lack of funds.

The website at least does put an honest face on what Mr. Barry has really been trying to do - to find a way to make a buck on the backs of those in the real estate industry. The Open MLS platform would have been provided by his own company; with that effort dead, now he’s looking at lead generation.

You almost can see next year’s headline coming … “Dave Barry begins blogging platform for real estate professionals.”

[tags]Open MLS[/tags]