The Death of the MLS (Multiple Listing Service)?
By the early 20th century a "multiple listing service" was commonly being used, information gathered locally by various Boards and printed to be distributed to members. This method survived until the internet revolutionized the system.
The purpose of the MLS is to disseminate information to the members. Ideally the information will serve to put Buyers and Sellers together and allow the Members or Realtors to make a commission on the deal. For the system to work effectively the information must be of the highest integrity. Imagine if a 3 bedroom house was 1 bedroom, for example, or if it professed to have a pool when it didn't.
Over the last several years proposed threats to the MLS have materialized in the form of various web sites that offer the same basic information as the MLS. Web sites such as Zillow and Realtor have democratized the system, property information is no longer solely available to Realtors, anyone with a computer can search an area of interest and find out specific information about a certain property or neighborhood.
For a couple of years these "public" sites provided technological advancement and ease of use that the MLS simply could not match. The MLS software was clunky and slow, not user friendly, only worked with the IE browser. Members like me, however, continued to use the MLS (and pay for it) for the simple reason that the MLS provided the most accurate information. The MLS' content is driven by its Members. When a property is listed an agent writes up remarks, posts pictures, etc which become a narrative of the property. When the property is sold the information is updated and this information becomes vital to other Members since it provides the "comparable" sales in the area. In contrast Zillow had a "Zestimate" which often had nothing to do with reality.
Lately, however, the integrity of the information found on the MLS, the very raison d'etre of its existence is being compromised. The MLS is being used not to provide accurate information but as an advertising tool for Sellers, particularly Banks, to direct traffic to online auction platforms. A Member will often receive an alert that a property has become available in their area, often at a very attractive price. When one checks it explains that the property will be available for auction at some point at a given auction site (Hubzu, Auction.com, Homesearch, etc). In other words, the property is not available for immediate sale and the price is a fantasy.
This sort of "marketing" might be suitable for the general public and Banks and auction sites should be able to drive traffic to their sites, but not at the expense of Members who are paying dues to make sure their platform has integrity. If the information on the MLS is no more honorable than that found in better funded, better interfaced and easier to use sites (they work on Chrome!) it is my "zestimate" that the MLS as a platform will die.