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Redefining Roles: The Future of Real Estate Organizations

The Analogy of Chocolate-Covered Raisins: A Mixed Perspective on Integrated Structures

Jerry Legrand, the Chief Technology Officer at Greater Louisville Association of Realtors/APEX MLS, vividly described the current combination of MLSs and Realtor associations as an \"unholy abomination.\" He likened the MLS to universally loved chocolate and associations to raisins, which have a more divisive appeal. His point underscores the argument that merging these distinct entities might dilute the individual strengths and value propositions of each, suggesting that their combined form is less effective than if they operated independently.

Serving Two Masters: The Executive's Dilemma in Dual Roles

Chris Carrillo, CEO of North Texas Real Estate Information Services (NTRIS), echoed this sentiment by invoking the adage of not being able to serve two masters. He emphasized the inherent challenges for an executive tasked with overseeing both a for-profit MLS division and a non-profit association arm. Carrillo believes that constantly switching between these two distinct mindsets and operational requirements is a significant hurdle, potentially hindering optimal performance for both entities.

Value Proposition Challenges: Are Associations Underestimating Their Worth Beyond MLS Access?

A central theme of the CMLS conference was the struggle of Realtor associations to articulate their unique value beyond providing access to the MLS. Kathy Elson, CEO of SmartMLS, a non-Realtor-owned entity, pointed out that associations offer crucial benefits such as advocacy, continuing education, and networking opportunities. These services, she argues, create invaluable relationships and support for members, distinct from what an MLS provides. However, Carrillo noted that many association leaders might rely too heavily on MLS access as their primary member draw, making it difficult to envision a separate, strong identity.

The Fear Factor: Associations' Reluctance to Embrace Independent Value Demonstrations

Elson further elaborated on the perceived reluctance of associations to separate from MLSs, suggesting that this fear stems from an apprehension about proving their value daily. She believes associations have, in some instances, used MLS access as a leverage point for membership compliance, rather than actively demonstrating their intrinsic worth through diverse services. This dynamic, she suggests, creates a dependency that ultimately hinders the growth and distinct identity of associations.

Illustrative Success: Florida Realtors' Diverse Offerings Beyond MLS

Florida Realtors stands as a compelling example of an association that successfully offers a broad array of valuable services independent of MLS access. Their offerings include a dedicated Tech Helpline, the Sable Sign e-signature tool, and Forms Simplicity, all of which are available nationwide. This demonstrates that associations can indeed thrive and provide significant member benefits without solely relying on the MLS as their primary value proposition, thereby strengthening their independent standing.

Striving for Independence: Gradual Steps Towards Structural Separation

Efforts towards separation are already underway in various markets. In Louisville, despite the MLS being owned by the local association, distinct boards and elections are in place, with plans for separate CEOs. REcolorado took a more decisive step by selling to private owners in 2024. Dana Bennett, REcolorado's President and CEO, reported that this separation has paradoxically fostered a stronger, more cooperative relationship between the MLS and Realtor associations, including significant joint marketing investments.

Advocacy as a Unified Strength: The Enduring Value of Combined Entities

Conversely, Rene Galvan, Executive Vice President of the Houston Association of Realtors, which wholly owns its local MLS, argues for the continued value of a combined structure. He emphasizes that if real estate is one's profession, political engagement is crucial. A unified entity provides a powerful advocacy group that can effectively address local regulations and ensure a positive business environment for members across multiple counties, highlighting the strategic advantage of their integrated approach.