Event Coverage

RE Infolink CEO Updates SILVAR Brokers on Regional MLS Consolidation

RE InfoLink CEO Jim Harrison was in Los Gatos and Palo Alto this week, where he updated SILVAR district chairs, brokers and managers on the latest developments towards an MLS consolidation at the regional level.

Harrison said in 2004, real estate brokers and MLS executives in Northern California began discussions regarding how to more effectively meet the current and future MLS needs of the region’s real estate professionals. Specifically, the participants discussed the cost and difficulties of conducting business across a large geographical area in which there were multiple MLS organizations with disparate rules, fee structures, and procedures. They also felt there was a growing need to provide improved services in order to respond to new competitors entering the industry.

An MLS consolidation would mean centralized management, standard data and rules. Most important, subscribers would have access to more information. This means exposure to listings with a larger resource and a broader base of information, according to Harrison.

As a result of these discussions, six Northern California MLS organizations which represent 15 Realtor associations and 46,000 MLS subscribers, namely RE InfoLink, Contra Costa MLS, Bay East MLS, East Bay Regional Data, Central Valley MLS and the MLS of the San Francisco Association of REALTORS®, began exploring how to consolidate the MLS operations across the region to better serve their subscribers’ needs. Each of the participating MLS organizations has representatives on the discussion work group.

RE InfoLink is the multiple listing service (MLS) for five California counties, with seven shareholders – SILVAR, San Mateo County Association of REALTORS®, Santa Clara County Association of REALTORS®, Santa Cruz Association of REALTORS®, Monterey Association of REALTORS®, San  Benito Association of REALTORS® and Watsonville Association of REALTORS®. It is also the only MLS owned by Realtors; the others are vendor contracted. Harrison said when the merger is completed, RE InfoLink, which alone has 22,000 subscribers, would form 53 percent of the regional MLS.

The move towards consolidation makes sense because of the cost and ineffectiveness of belonging to multiple MLS organizations, said Harrison. He indicated about 5,000 of RE InfoLink subscribers belong to more than one MLS.

Discussions on establishing the regional MLS are well advanced and a merger could be approved within a couple of months, said Harrison. He informed brokers that recently, the San Francisco Board of Realtors® indicated they are temporarily withdrawing their participation in the venture. Despite this development, he assured brokers that the critical mass of the regional initiative remains intact. He is hopeful that SFAR will decide to continue full participation in the regional MLS consolidation in the near future.

NCREX (Northern California Real Estate Exchange) is the name of the regional MLS to be formed by RE InfoLink, Contra Costa MLS, Bay East MLS, East Bay Regional Data, Central Valley MLS. To-date, rules and regulations governing NCREX have been established, a data standard has been formed, and a data base which will store and place all information from the five MLS organizations in one place, under one format, has been created. The data repository will be tested in December.

NCREX will be owned by the participating associations and MLS organizations. The organization will be broker-governed with 15 directors who will be brokers and corporate officers of the participating associations. The board will be diverse and include four large firm representatives, four medium firm representatives, four small firm representatives and three boutique representatives. A nominating committee will identify and elect the board.

Harrison said NCREX will be a mutual benefit corporation, a “true cooperative,” organized for service and not profit. NCREX will use the associations as service centers.  Checks and balances are intact in bylaws that note 75 percent of shareholders need to approve major changes. Before incorporation can take place, bylaws will need to be approved by the participating associations; this should take place by the end of November.

Harrison said consolidation is the way of the future. He pointed to numerous mergers taking place around the country – in the Seattle area, in Connecticut, Maine, Chicago, Massachusetts and Virginia.

“New rules will be standard, there will be greater access to data, newer technology and consumers will benefit from greater exposure,” Harrison listed a regional merger’s advantages.

The RE InfoLink CEO is positive about the merger and is confident the venture will interest other MLS organizations.

“I believe if we build it they will come,” Harrison said.

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109.

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