What is the value of MLSs and associations post-settlement? 

Associations and multiple listing services have long been central to residential real estate in the U.S. Realtor associations provide agents with resources, education and advocacy, while MLSs have been credited with bringing "efficiency and fairness" to the marketplace. 

But in the wake of the NAR settlement, the industry seems to be at a crossroads: Associations are facing lawsuits from those who oppose mandatory membership, and advocates of private listing networks want to dismantle Clear Cooperation, leaving MLSs without access to all listings.

And agents themselves appear to be questioning the value these longtime institutions bring to their businesses.

A recent agent sentiment survey by real estate consulting firm WAV Group suggests that real estate professionals see less of a role for such organizations in a post-settlement future.

Removing offers of compensation diminishes MLS value

Of the 278 real estate professionals surveyed, 55% said they believed MLSs would be "much less valuable" or "somewhat less valuable" now that listing agents are not allowed to include offers of compensation on MLS platforms.

Just as agents have had to come up with new ways to pitch their value to clients, MLSs need to educate members about what they offer, advised Marilyn Wilson, CEO of WAV Group.

"It is not okay anymore to simply assume association members and MLS subscribers truly understand the depth of value offered by both types of organizations," Wilson said in the report. 

Association services receive mixed grades

Agents and brokers were asked to indicate how much they value the services provided by their local associations. Of the seven services listed in the survey, only two received satisfactory grades from a majority of respondents.

Education/Continuing education received the highest marks, with 58% of agents saying they were "very satisfied" or "satisfied" with their local association's offerings. Professional development/Code of ethics enforcement garnered the approval of 55% of respondents. 

Agents were less enthusiastic about other services, including advocacy, networking opportunities, community engagement and economic development. The offering that received the highest share of "very dissatisfied" responses was productivity awards.

"While advocacy is arguably one of the most important services delivered by local associations, they are not as well-appreciated," Wilson said. 

Winning over members

Considering the overall positive sentiment toward education, the report recommended that local associations emphasize and expand those programs to better support their agent and broker members. Other recommendations included bolstering professional standards, actively seeking member engagement, highlighting advocacy successes and rethinking events and networking opportunities.

And MLSs need to work on their pitch, said Wilson. "The marketing power of the MLS community of participants, along with the success technologies and training offered, coupled with the most accurate, comprehensive and timely information, needs to be reinforced."

Real estate professionals need to "get a clue about the value of the MLS," argued WAV Group managing partner Victor Lund in a blog post, noting that it's difficult to overstate the critical role MLSs play in keeping residential real estate information accurate, accessible and ethical.

"Real estate for consumers and professionals without an MLS can only be described as crude, and full of fraud," Lund said. "Imagine if Craigslist, or the newspaper, was the only source of property information. In most countries, the only access to inventory for sale is through advertising portals. They have enormous market power, and a huge percentage of the advertising is false advertising."