MLS executives are right to be cautious when agents, brokers, teams, or third-party listing websites connect artificial intelligence to MLS data. That concern is not resistance to innovation. It is stewardship of the MLS data that is fundamental to the brokerage cooperative.

MLS data is not just information. It is the shared intellectual property of the brokerage cooperative and the foundation on which every MLS operates. When AI systems are poorly designed or loosely governed, they can quietly erode that foundation by learning from MLS data and repurposing it in ways that violate copyright, data license agreements, and broker trust.

This tension defines the current moment. MLSs are expected to enable innovation while simultaneously protecting the broker asset they were created to serve naturally and without favor.

Why AI Creates a New Class of Data Sovereignty Risk

Traditional software consumes MLS data in predictable ways. Search, display, analytics, and reporting are governed by long-standing rules around access, storage, and attribution.

AI introduces a fundamentally different risk profile.

When an AI system is allowed to train on MLS data, the data is no longer just being queried. It is being absorbed into the internal weights of a model. Once that happens, the value of the MLS data can be reconstructed, inferred, or redeployed outside the MLS ecosystem, often without visibility or control.

This is the core data sovereignty concern facing MLSs today:

• MLS data can be transformed into derivative intelligence that lives outside MLS governance
• Copyright protections become difficult to enforce once data is embedded in a trained model
• Data license restrictions can be unintentionally violated through model reuse or redistribution
• The cooperative asset of brokers risks becoming a permanent input to third-party AI platforms

In short, AI can turn a shared broker asset into an uncontained resource if safeguards are not designed from the start.

Innovation Is Not Optional. Exposure Is.

MLSs cannot simply block AI. Many agents and consumers increasingly expect smarter search, conversational interfaces, and more intuitive discovery tools. The challenge is not whether innovation should happen, but how it happens.

This is where architectural intent matters.

A well-designed AI system can enhance consumer experience without ever learning MLS data. A poorly designed one can permanently compromise it.

Natural Language Search, Explained Simply

One of the most visible and valuable AI use cases in real estate is natural language search.

Natural language search allows consumers to search the MLS the way they speak or think, rather than forcing them into rigid filters and dropdowns.

Instead of selecting city, beds, baths, price, and property type manually, a consumer can type or say:

• “A ranch-style home with a pool near good schools in Austin”
• “Two-bedroom condos in Arlington and Alexandria close to metro stations”
• “Homes in Santa Monica within a 15-minute walk to Whole Foods”

The breakthrough is not that the MLS data changes. The breakthrough is that large language models interpret conversational intent and translate it into a structured search query that operates across the MLS dataset. The AI acts as an interpreter, not an owner of the data. This is the method deployed by pioneer Howard Hanna Real Estate Services; at Cribio.com (which is the Broker Public Portal’s industry initiative); and Homes.com.

Conversational Search Without Training the Data

This distinction matters.

In a compliant implementation, the large language model does not study MLS data, store it, or improve itself using it. Instead, it performs a transient task:

• It receives a short, temporary prompt describing the user’s request
• It converts that request into a structured search query
• It passes that query to the MLS-backed search system
• It forgets everything immediately after execution

The model behaves like a translator with no memory, not a student with a notebook.

A Practical Example: Homes.com Smart Search

Homes.com provides a useful reference point for MLS leaders evaluating how AI can be deployed responsibly.

Homes.com launched its Smart Search feature in October 2025 using a natural language interface built in partnership with Microsoft through the Azure OpenAI Service. From the outset, the system was engineered to comply with IDX rules, MLS data licenses, and broker copyright protections.

Several architectural decisions are worth highlighting.

Data Isolation and Residency

According to Andy Woolley, Homes.com operates Smart Search inside a private Microsoft Azure tenant. MLS listing data never leaves the Homes.com environment and is isolated from the public internet. The AI does not crawl, scrape, or independently access MLS data. It only sees data passed through secure internal APIs for seconds at a time.

No Model Training, Ever

Under Homes.com’s enterprise agreement with Microsoft, MLS data is never used to train, fine-tune, or improve any external third-party AI model. The model is static and frozen. It cannot learn prices, addresses, or patterns across the MLS dataset. This is governance operating at the server level.

Stateless Execution

The Smart Search AI is intentionally designed with amnesia. It has no memory of prior queries and no ability to build cumulative understanding of the MLS. Once a query is processed, the data disappears from the model’s context entirely. Apple’s Siri works the same way. It’s a decision that delivers trust and privacy.

IDX and Attribution Compliance

Search results generated through Smart Search are programmatically contained by the same IDX display rules as traditional search. Broker attribution, display controls, and domain restrictions remain intact, ensuring that AI-enhanced results do not bypass existing MLS governance, IDX policy, or data license restrictions.

The Stewardship Challenge for MLS Leaders

The Homes.com example demonstrates a critical point. AI does not have to threaten MLS data sovereignty. The Homes.com model is a version of the architecture and policy governed rule set that MLSs should model in the delivery of their gateway for agents and brokers to access MLS records using AI. 

The real risk emerges when AI is connected casually, without architectural guardrails, or through consumer-grade tools that were never designed for licensed, copyrighted data. This is happening in abundance today, and MLS records are being shared with AI though unrestricted gateways that live on replicated data sets living outside of the MLS listing infrastructure.

For MLSs, the path forward requires discipline:

• Demand clarity on whether AI functionality deployed by licensed data recipients allow AI systems to train on MLS data (data leakage)
• Require stateless, transient processing for conversational AI
• Ensure data residency and isolation within controlled environments (the “walled garden” approach)
• Treat MLS data as a protected cooperative asset, not just an input
• Encourage innovation that enhances search results without extracting data from the dataset

Why MLSs Must Move Quickly on MCP Servers

This discussion ultimately leads to a more urgent conclusion for MLS leadership. MLSs must move quickly to provide Model Context Protocol (MCP) servers as part of their core infrastructure strategy.

Until MLSs provide sanctioned MCP servers, vendors, brokers, teams, and agents who want AI capabilities have little choice but to design their own data architectures downstream of the MLS. Today, there are no hard stated restrictions that forbid vendors from replicating the IDX data to their servers and allowing AI to train on the data. That fragmentation is not just inefficient, it erodes the value of the data by allowing any AI to extract whatever it wants. The MLS never knows about the extraction because it is happening on data repositories that it only controls by the data license agreement.

When AI connections are built outside of MLS-controlled environments, the MLS loses visibility into how data is accessed, processed, and protected. Each independent implementation introduces variability in compliance discipline, security standards, and architectural rigor. Over time, that variability compounds risk.

Perhaps the greatest emerging liability in real estate today is the unharnessed adoption of AI downstream of the MLS.

The Downstream Risk MLSs Cannot Ignore

AI adoption is accelerating whether MLSs are ready or not. Agents and brokers are experimenting with consumer-grade tools. Vendors are racing to differentiate with AI features. Development teams are building AI agent workflows that connect MLS data in new ways.

Without MLS-provided MCP servers:

• Vendors must replicate MLS data to create their own AI data pipelines to remain competitive
• MLSs lose the ability to enforce consistent guardrails at the point of AI interaction
• Data access patterns become opaque and difficult to audit
• Compliance becomes reactive instead of architectural

The danger is not theoretical. If even a single MLS data feed is accidentally exposed to a training-enabled large language model, the consequences may be irreversible. Once data is learned by a model, it cannot be reliably unlearned. A single leak to one or two models could permanently compromise the value of the cooperative asset.

This is happening today at scale off of data collected by search engine website crawlers that were designed for indexing websites so search engines could link to pages. Microsoft’s own generative AI models and partners like OpenAI can and do use the Bing index for training as well as for real-time retrieval (grounding). 

Here is a breakdown of how AI uses the Bing index:

• Training Foundation Models: Microsoft has indicated that web content in the Bing Index may be used to train their generative AI foundation models.
• Retrieval-Augmented Generation (RAG): AI tools like Copilot and ChatGPT use Bing to ground their responses, meaning they search the index in real-time to provide up-to-date, accurate information.
• Data Usage Controls: Site owners can control this, however. Content without NOCACHE or NOARCHIVE tags can be used for both Bing Chat answers and training. If content is tagged NOCACHE, it may still be used in chat, but only URLs, Titles, and Snippets are used in training. Content tagged NOARCHIVE is not used for either.

If IDX data license agreements required that site owners displaying IDX data deploy NOARCHIVE tags, this consequential data leakage could be resolved. WAV Group believes that the best policy would only allow the listing firm to drop the NOARCHIVE tag on their listings. The listings of other firms would require the NOARCHIVE tag.

MCP Servers as the New Line of Defense

MCP servers give MLSs a way to reassert control without blocking innovation.

By providing an MLS-controlled interface for AI interaction, MCP servers allow MLSs to:

• Act as the authoritative broker of context, not just data
• Restrict access to participants and subscribers through existing login protocols
• Enforce stateless, non-training execution by design
• Maintain data residency and license compliance
• Standardize how AI tools safely interact with MLS systems
• Enable innovation without surrendering sovereignty

In this model, the MLS defines the rules of AI engagement.

The Architectural Moment MLSs Cannot Miss

The approach demonstrated by Homes.com shows what is possible when AI is engineered deliberately. Private infrastructure, stateless execution, zero-training guarantees, and strict license compliance are not obstacles to innovation. They are prerequisites for trusting that the data brokers contribute to the MLS benefits the cooperative.

MLSs now face a similar architectural moment.

Either the MLS becomes the secure, compliant gateway through which AI interacts with listing data, or that role will be filled by dozens of downstream implementations, each with no supervision, uneven controls, and collective risk of exposing data outside of the control of data license agreements.

The question is no longer whether AI will touch MLS data. It already is.

The real question is whether MLSs will lead that connection through thoughtful new AI usage rules and MCP servers, or whether they will be left trying to contain the consequences after the fact.

Stewardship, speed, and architectural intent now matter more than ever. Reach out below if you’re interested in getting started.

The post MLS Data, AI, and the Line Between Innovation and Risk appeared first on WAV Group Consulting.

The launch of the Delete Requests and Opt-Out Platform, known as DROP, operationalizes the Delete Act and signals a broader shift toward enforceable, consumer-controlled data systems overseen by the California Privacy Protection Agency.

California residents can remove their information here.

First, a Clear Distinction

It is important to separate two very different roles that unfortunately share the word “broker.”

Data brokers collect personal information from many sources and sell or license that data to others. These companies are the direct targets of California’s new deletion platform.

Real estate brokers, MLSs, and agents collect information directly from consumers in the course of providing services. That includes information submitted through websites, property searches, market reports, home valuation tools, newsletters, and client portals. They are not data brokers under the Delete Act.

However, they are data stewards. That distinction matters.

What California Has Built for Consumers

DROP allows verified California residents to submit a single deletion request that is distributed to every registered data broker in the state. Data brokers must begin processing these requests in August 2026 and have 90 days to delete covered data or explain why it cannot be located.

The law applies to third-party data sellers, not to first-party data collected directly by a business from its own customers. Public records and certain regulated categories of information are excluded.

Penalties for noncompliance are material, reaching $200 per day per violation, plus enforcement costs.

Where Other States Stand

Many states now provide consumers with rights to access, delete, or opt out of the sale of personal data. California is currently unique in offering a centralized, state-run deletion platform that makes those rights easy to exercise.

Other states should move quickly toward similar systems. Rights that require consumers to chase hundreds of individual companies are rarely used in practice.

Real estate organizations sit at the intersection of consumer trust, data accuracy, and regulated marketing. Even though DROP targets data brokers, it raises expectations around transparency, disclosure, and ease of opting out.

Regulators, consumers, and plaintiffs’ attorneys increasingly expect that if a consumer shares information on a real estate website, they can easily understand how it is used and how to stop future communications.

That expectation applies equally to:

• Brokerage websites
• MLS consumer-facing sites
• Individual agent websites and landing pages

A Compliance Reminder for Real Estate Websites

Now is an appropriate time for brokerages, MLSs, and every agent operating a personal website to review and update foundational website documents and controls.

At a minimum, organizations should ensure the following are current and accurate:

Privacy Policy

• Clearly describe what data is collected and for what purpose
• Identify categories of third-party vendors and integrations
• Explain consumer rights, including access, deletion, and opt-out options
• Reflect the states and jurisdictions in which the site operates

Terms of Use

• Align terms with how listings, valuations, and content are actually delivered
• Remove outdated references to tools, feeds, or practices no longer in use
• Ensure disclaimers are consistent with MLS rules and brokerage policy

Copyright Notices

• Update copyright dates across websites and subdomains
• Confirm ownership statements accurately reflect the brokerage, MLS, or agent

Easy Opt-Out Features

• Provide a clear, visible way to opt out of marketing communications
• Ensure opt-out requests propagate across email, CRM, and marketing systems
• Avoid unnecessary friction or multi-step processes

These are not advanced compliance measures. They are baseline expectations for any consumer-facing real estate platform.

California’s DROP platform is not about real estate brokerage. It is about accountability at scale. But it reinforces a simple truth for the real estate industry. Consumer trust increasingly depends on clarity, control, and follow-through.

Brokerages, MLSs, and agents who keep their digital policies current, understandable, and easy to act on will be better positioned as privacy regulation continues to evolve. Those who ignore these basics may find that the risk is not regulatory alone, but reputational.

WAV Group can shepherd your compliance update. Please contact Victor Lund or David Gumpper. Remember, real estate brokers are responsible for agent websites. If you have not audited them, you could have significant risk.

The post California’s New Data Deletion Platform Targets Data Brokers. The Implications for Real Estate Are Different, but Real. appeared first on WAV Group Consulting.

This surfaced for me while researching relocation tactics for brokerages. One idea was to identify the strongest recruiting companies in a market. I landed on a firm that advertised itself as the number one recruiting company in America for seven straight years on the Forbes list.

Strong claim. Strong enough that I immediately went looking for the list.

Not to validate them. To see who else was on it.

I wanted to compare the number one firm with number two, number three, and number twenty. Their big announcement sent me directly to their competitive set, spelled out in the very ranking they promoted.

That’s the risk. Even if you’re number one, the danger is obvious. The ranking becomes a directory of alternatives. And no matter where you are on the list, you still publish the competitive roadmap.

Real estate has seen the downside of visibility before. Look at the large brokerage firms highlighted in the T360 rankings for companies transacting more than 2 billion dollars. Those rankings didn’t offer any insulation in the Sitzer litigation. Their scale and prominence didn’t shield them from paying significant damages. High placement doesn’t equal protection, it equals risk.

Industry lists aren’t inherently bad. Being recognized feels good, and it should. But the value depends on how and where you share it.

How to use rankings without sending customers elsewhere

Print works. There’s enough friction that readers rarely jump mediums to investigate the rest of the list.

Sales decks also work. You control the frame. The audience is focused on your story, not on exploring rivals.

LinkedIn is neutral. It can build credibility, but it also sits one click away from a competitor’s profile or the full list you’re referencing.

Your website is where the trouble begins. Publishing rankings prominently makes comparison shopping effortless. Opening a new tab is easier than finishing the paragraph.

A company’s first priority is positioning. That means one clear statement about your culture, values, and the unique benefit you deliver to consumers. Getting that sentence right takes discipline. But once established, it becomes the architecture for strategy, operations, marketing, recruiting, and budget priorities. The positioning statement is the promise. The plan is how you deliver the promise.

Rankings play a supporting role. They’re proof points. They validate the positioning. They aren’t the message. If a brokerage becomes the largest in the country through acquisition, they’re number one. That doesn’t mean they’re the best choice for a consumer. It means they’re highly skilled at mergers. You will notice that although Compass acquired their way to the top, they measure themselves against a different growth metric, namely non-acquisition related growth. Meanwhile, firms like JB Goodwin in Austin and San Antonio or Seven Gables in Orange County may not post the same volume, yet they deliver clarity, consistency, and a defined consumer value. That’s positioning at work.

The larger lesson is simple. Once a consumer learns a list exists, the rest of that list becomes part of the consideration set. If a ranking sends someone searching instead of choosing, the ranking didn’t help. It advertised your competition.

The post The double edged sword of top lists appeared first on WAV Group Consulting.

MIBOR has taken a bold step toward modernizing how real estate technology companies access listing data. In a new partnership announced today, MIBOR is now authorizing Lundy’s Finding Homes platform to operate directly from the Broker Public Portal’s RealAPI, a unified data access layer built by and for brokers and MLSs.

This marks a significant departure from the legacy model where vendors ingest and maintain separate copies of MLS data across dozens of markets. Instead, Lundy will rely on RealAPI’s search-as-a-service infrastructure, already ingesting, normalizing, and updating the MIBOR data feed in real time.

The Difference Matters

Most proptech companies spend a disproportionate amount of engineering time and money rebuilding the same infrastructure for every MLS they integrate with: different schemas, field names, refresh rates, compliance rules, and support procedures. That inefficiency not only slows innovation, it drains budgets that could be spent building customer-facing features.

By authorizing RealAPI access, MIBOR is eliminating redundant engineering and placing itself at the forefront of MLS innovation. This gives Lundy and other vendors the ability to scale faster, cut costs, and focus on delivering exceptional tools for agents and consumers.

From replication to real-time cooperation

The strategic shift is also a milestone for the Broker Public Portal’s mission. RealAPI isn’t just another data pipe. It’s a broker- and MLS-owned technology that offers a single access point, standardized schema, and a usage-based billing model that aligns incentives across the ecosystem.

As Shelley Specchio, CEO of MIBOR, explained, “We’re cutting out inefficiencies and ensuring our members see faster adoption of high-value features from vendors like Lundy.”

Lundy CEO Justin Lundy echoed the benefit: “This partnership lets us do what we do best, deliver intuitive AI and voice tools while relying on BPP’s RealAPI to power the MLS data layer. It’s a shift that accelerates innovation across the entire industry.”

An open invitation to other MLSs

Because RealAPI already houses and maintains normalized MIBOR data, other MLSs that are part of the Broker Public Portal can authorize access with minimal friction. The result: more choice for brokers, faster deployment for vendors, and stronger data governance for MLSs.

Dan Troup, CEO of the Broker Public Portal, put it simply: “We invite more Lundy customers and other apps to take advantage of this infrastructure.”

The bigger picture: digital sovereignty for MLSs and brokers

This announcement isn’t just about a new tech integration. It’s about reclaiming control over the data infrastructure that underpins the real estate industry. RealAPI represents digital sovereignty, a future where MLSs and brokers control how their data is accessed, who uses it, and what value is returned.

WAV Group sees this as a pivotal moment. With MIBOR leading the way, MLSs have a clear model for supporting innovation without surrendering control. And vendors like Lundy have a faster path to building great products.

Press release follows. 

Lundy Taps RealAPI from Broker Data to Power MIBOR Launch

Partnership Delivers Faster, Cheaper, Smarter MLS Integrations for Vendors and Brokers

Indianapolis, Ind. — Oct. 21, 2025 — Lundy Inc. (Lundy), and MIBOR Broker Listing Cooperative (MIBOR), today announced a groundbreaking partnership that will transform how real estate technology companies access MLS data. MIBOR will be authorizing the Broker Public Portal’s RealAPI to fuel Lundy’s Finding Homes platform.

Justin Lundy, CEO of Lundy, Inc. states, “This partnership lets us do what we do best, deliver natural, intuitive voice and AI tools for agents and consumers while relying on BPP’s Search-as-a-Service RealAPI to power the MLS data layer. What Dan Troup and his team at the Broker Public Portal have built for MLSs and brokers makes it possible to move faster, smarter, and with more confidence. It’s a shift that accelerates innovation across the entire industry.”

For decades, every technology vendor has been forced to replicate the same work: ingesting, storing, mapping, and maintaining disparate MLS feeds into a common format across MLS markets. This approach wastes time, slows innovation, and diverts dollars away from building the features that agents and consumers actually need. As an MLS owner of the Broker Public Portal, MIBOR is leveraging the RealAPI so vendors like Lundy can focus entirely on their core competencies. This new connection complements MIBOR’s existing data distribution channels, offering another secure and efficient pathway for innovation. 

“By enabling direct access through the RealAPI, we’re cutting out inefficiencies and ensuring our members see faster adoption of high-value features from vendors like Lundy, while continuing to support other trusted distribution partners like MLS Grid that keep our marketplace running efficiently”, says Shelley Specchio, MIBOR CEO.

In Lundy’s case, this means delivering cutting-edge voice and AI applications that provide agents and consumers the fastest, most accurate MLS search experience available. The Broker Public Portal is already ingesting and maintaining the MIBOR data and normalizing it to a single format for Lundy that can be used for other MLS markets. Thanks to MIBOR, existing and future Lundy Finding Homes customers can feed the application from the RealAPI, saving time and data management costs. Other MLSs may authorize Finding Homes through the RealAPI and provision data in minutes. 

“The Broker Public Portal is owned by MLSs and brokerages, and one of the key sovereign technologies available to our owners is the RealAPI from our BrokerData platform. For MIBOR, that means using RealAPI to deliver data as a service to Lundy, eliminating redundant engineering and replication while providing a better experience. We invite more Lundy customers and other apps to take advantage of this infrastructure,” explains Dan Troup, CEO of the Broker Public Portal. 

Benefits for Vendors

• Faster to Market: Products can scale into new MLS markets in minutes, not months, bringing the industry closer to the dream of “flipping a switch to turn on a product.”
• Lower Cost Structures: Shared RealAPI infrastructure eliminates duplicated ingestion and maintenance costs for each vendor.
• Focus on Core Competency: Vendors can spend resources on building the features that agents and consumers actually see, instead of rebuilding and managing data pipelines.
• Consistency Across Markets: One API spec, one schema, one query model. There is no need for Lundy or other connected MLS applications to retool for every MLS idiosyncrasy.

Benefits for MLSs & Associations

• Faster Innovation for Members: Vendors can deploy products more quickly, giving MLS subscribers earlier access to new tools and services.
• Higher ROI for Members: Instead of half the technology budget going to “plumbing,” every dollar flows toward richer features and better user experiences.
• Data Governance & Security: RealAPI provides a controlled, auditable distribution layer. Usage-based billing and API-mediated access discourage unauthorized data resale and give MLSs visibility into who is using the data, how often, and for what purpose.
• Revenue Alignment: Usage-based billing ties data access to actual value creation, creating an ongoing revenue stream for MLSs while ensuring data use complies with MLS rules.
• Scalable Standards: A unified search backbone reduces inconsistencies across markets, making MLS participation more valuable.
• Leveraging an Asset of the Brokers and the MLS: MIBOR is an owner of the Broker Public Portal along with other MLSs and brokers. By leveraging the RealAPI asset to feed partner applications like Lundy and others, they extend the value of their asset and maintain sovereignty over data management. 

About MIBOR Broker Listing Cooperative®

The Broker Listing Cooperative® (BLC®), central Indiana’s multiple listing service, is operated by the MIBOR Service Corporation, a wholly owned subsidiary of the MIBOR REALTOR® Association (MIBOR). Serving more than 10,000 real estate professionals, the BLC® powers an efficient and transparent marketplace through trusted data, advanced technology, and seamless distribution. Since 1912, MIBOR has advanced professionalism, innovation, and collaboration to empower members and strengthen the marketplace. Learn more at www.mibor.com.

About Lundy, Inc.

Lundy Inc. is a pioneer in voice-first technology, committed to transforming the real estate industry through inclusive, intuitive solutions. Our flagship products leverage Al and voice commands to make property discovery, transactions, and information accessible to everyone. Visit www.getlundy.io.

The post MIBOR and Lundy Break New Ground with RealAPI Integration appeared first on WAV Group Consulting.

Consumers can now ask ChatGPT about homes for sale, and in seconds, listings appeared with photos, prices, and details. It looks like the future of search. It’s impressive, but a violation of the terms of MLS data licensing. 

But beneath the slick experience sits a serious problem. Zillow didn’t ask permission from the MLSs or brokers who own that data before transmitting it into OpenAI’s ChatGPT environment.

That’s not innovation with cooperation. That’s innovation without authorization for the sole benefit of Zillow.

The line Zillow crossed

Zillow’s IDX licenses permit it to display MLS data on Zillow.com and its mobile apps. Those permissions do not extend to publishing or transmitting that data on any other domain, especially one controlled by another company.

ChatGPT is not a Zillow property. It is a separate, third-party platform operated by OpenAI, which holds no data license with any MLS. When Zillow connected its MCP server to OpenAI’s SDK, it effectively republished MLS listings in an environment that no broker, MLS, or participant controls.

That’s a clear violation of the cooperative rules that underpin the MLS. It’s no different than Microsoft scraping MLS listings without a license and publishing them.

Zillow does not have the right to make MLS data available through ChatGPT. OpenAI does not have a data license. This is a breach of both the spirit and the letter of cooperation.

(For those who do not recall – the idea of domain control was developed to prevent this type of display – even as an iFrame. Remember when brokers wanted to buy the real estate page on newspaper websites and frame in their search – not allowed!)

Why this matters for MLS executives

The MLS exists to ensure that all brokers compete on a level playing field while sharing listings under a common set of rules. Those rules are what protect brokers from misuse, misrepresentation, and unauthorized redistribution of their data.

If a broker or vendor transmitted MLS data to an unlicensed third party, the MLS would shut them off immediately. The same standard must apply to Zillow.

Allowing this to stand sends a dangerous message: that some participants can bend the rules while others cannot. That’s not cooperation, it’s capitulation.

MLSs must act

The remedy here is simple and necessary. MLSs should suspend Zillow’s data feed until it brings its use of ChatGPT into compliance. Zillow can innovate with its own listings all it wants. But it cannot use broker-contributed listings as a public data feed for an unlicensed AI model.

MLS executives should also take this opportunity to set a clear precedent for AI-era data governance:

1. Enforce domain control

Listings may only be displayed on licensed, MLS-approved domains. Any use beyond that like MCP servers, SDKs, APIs, or AI integrations requires explicit approval.

2. Require AI-specific data licenses

Create an “AI Display Addendum” that defines how MLS data can be used with LLMs, SDKs, or AI applications. Without such an agreement, no MLS data may flow into external AI systems.

3. Audit all outbound data feeds

Ensure that every partner, from portals to vendors, complies with MLS rules for domain control and data use. MCP server integrations represent a new frontier and a new demand for clear policy.

4. Support broker-led innovation

MLSs can and should build their own AI integrations using the same SDK tools. This keeps innovation inside the cooperative framework and ensures that consumers receive trusted, broker-backed information directly from the source. Here, the MLS places the guard rails around search and display to the fair benefit of all MLSs. If you are looking for an outline of display rules, check out https://www.fairdisplay.org/.

Cooperation is the rule, not the exception

Zillow’s integration with ChatGPT might look exciting, but it crossed a bright line. Cooperation doesn’t mean asking for forgiveness later. It means following the same rules everyone else does.

If MLSs fail to act, they weaken the very foundation that makes cooperation possible.

This isn’t about blocking progress. It’s about protecting the rights of brokers who created the data, the consumers who rely on it, and the MLSs entrusted to enforce fairness.

Zillow built its business on cooperation. Now it’s the MLS’s job to defend it.

The post Zillow seeks forgiveness, not permission: MLSs must enforce cooperation in the AI era appeared first on WAV Group Consulting.

Homes.com recently launched a great new feature displaying historical property photos alongside current listings, becoming the first major portal to offer consumers this comprehensive view of a property’s visual history. While industry observers initially raised questions about innovation, copyright concerns, and potential violations of trust, the reality is far more nuanced—and reveals important strategic considerations for MLS leadership.

New listing

Old Listing

The Real Story Behind the Feature

According to Andy Woolley, VP of Industry Relations at Homes.com, the historical photos are not the result of new data partnerships or innovative technology. Instead, they represent a creative use of data that MLSs have been providing all along. This is 100% compliant with data licensing. 

“The property images displayed on Homes.com come to us downstream from an MLS, and our display of images associated with sold properties are all subject to local MLS rules,” Woolley explained. 

The feature operates entirely within existing IDX frameworks. MLSs license the historical image data to Homes.com under the same terms that govern all IDX displays, with proper copyright protections in place. “Typically the participant and subscriber warrant that they have procured all necessary licenses to media they submit to the MLS, and they grant the MLS a perpetual and irrevocable license to use, store, display and distribute the media as part of the MLS compilation,” Woolley correctly noted.

The Policy Patchwork Problem

However, there are significant inconsistencies in how MLSs handle sold property images. “Many MLSs do not restrict the display of images associated with sold properties, but some do limit the history or the number of images. For example, some MLSs restrict sold properties to one image.”

This creates a fragmented landscape where consumer experience varies dramatically depending on local MLS policies. Some markets provide rich historical photo galleries spanning multiple years, while others limit consumers to a single image from previous listings.

Key Questions for MLS Leadership

This development raises several critical strategic questions that MLS CEOs should be asking:

1. Data Retention and Storage Strategy

If Homes.com can display photos from seven years ago, MLSs are clearly storing substantial historical image data. What are the costs associated with maintaining this archive, and are MLSs capturing appropriate value from this investment?

2. Competitive Intelligence and Market Position

Are MLS executives fully aware of how their sold data is being leveraged to create compelling consumer experiences on third-party platforms? While MLSs provide the raw data, portals are capturing the engagement and consumer mindshare.

3. Revenue Optimization

Historical property photos clearly have significant consumer appeal—enough for Homes.com to feature them prominently as a differentiator. Should MLSs be monetizing this valuable historical data more strategically rather than including it as part of standard IDX feeds?

4. Policy Consistency and Coordination

The variation in sold image policies across MLSs suggests a lack of industry coordination. Some MLSs restrict historical photos to one image while others provide comprehensive galleries. This inconsistency may be limiting market potential and creating confusion among data recipients.

Attribution and Display Rule Considerations

A closer examination of Homes.com’s implementation reveals potential gaps in current IDX display requirements. While the platform lists the agent associated with historical photos, it does not display the brokerage firm. This raises an important question: should IDX display rules be modified to require broker attribution on historical content, similar to requirements for active listings?

Current IDX policy requires that “all listings displayed pursuant to IDX shall identify the listing firm in a reasonably prominent location.” However, the application of this requirement to sold property photos appears inconsistent across platforms and markets.

NAR’s Copyright Framework for Listing Photos

To address potential copyright concerns, the National Association of REALTORS® provides three sample agreements that establish clear ownership and usage rights for listing photographs:

Work for Hire Agreement: Under this framework, commissioned photographs are considered “work for hire,” making the commissioning party (typically the broker) the automatic owner of the photographs from their creation.

Assignment Agreement: This approach has the photographer assign all rights, title, and interest in the photographs directly to the broker, transferring complete ownership.

Exclusive License Agreement: For photographers who prefer to retain ownership, this option grants brokers an exclusive license to display and distribute the photographs specifically in connection with real estate industry activities.

These sample agreements, available on NAR’s website, are designed to ensure that brokers and MLSs have proper licensing rights to the photos they submit and subsequently distribute through IDX feeds. As Woolley noted, “Typically the participant and subscriber warrant that they have procured all necessary licenses to media they submit to the MLS, and they grant the MLS a perpetual and irrevocable license to use, store, display and distribute the media as part of the MLS compilation.”

However, the effectiveness of these copyright protections depends on consistent implementation across the industry—something that may require closer examination as historical photo displays become more prominent.

The Broader Strategic Implications

The Homes.com historical photos feature represents more than just a new consumer tool—it’s a case study in how the 2012 IDX policy amendment continues to create unexpected opportunities for data recipients while potentially leaving MLSs undercompensated for the value they provide.

When NAR required sold data inclusion in IDX feeds over a decade ago, the focus was on basic transparency and market information. Few anticipated that this decision would eventually enable rich, multimedia consumer experiences that span years of property history.

Recommendations for MLS Leadership

MLSs should consider several strategic actions in response to this development:

Audit Current Policies: Review sold data licensing terms to ensure they align with organizational revenue goals and member interests.

Evaluate Data Value: Assess the consumer appeal and market value of historical content being provided through standard IDX feeds.

Coordinate Industry Standards: Work with other MLSs to establish more consistent policies around sold property image display and attribution requirements.

Consider Enhanced Licensing Tiers: Explore whether historical multimedia content warrants separate licensing terms or premium pricing structures.

Looking Forward

The Homes.com historical photos feature serves as a reminder that data licensing decisions made over a decade ago continue to shape today’s competitive landscape. As MLSs navigate an increasingly complex proptech environment, understanding how their data assets are being leveraged downstream becomes crucial for strategic planning.

The question isn’t whether MLSs should be concerned about features like historical photo displays—it’s whether they’re maximizing the strategic value of the comprehensive data assets they’ve been building for years. In a market where consumer engagement increasingly determines platform success, historical property photos represent just one example of how creative data applications can create competitive advantages.

For MLS leadership, the key is ensuring that policy decisions made today will continue to serve member interests and organizational goals years into the future—rather than inadvertently enabling tomorrow’s disruption.

The post Homes.com Publishes Historical MLS Photos on Active Listings. Should MLSs Be Concerned? appeared first on WAV Group Consulting.

Did you have damage from the Hurricanes? As the snowbirds and spring break crowd hit Florida to reconnect with year-round residents, hurricane damage is the hot conversational topic. Of course, the majority of homes for sale were either just remodeled or needed to be remodeled. It’s an important time for Realtors.

On the west coast of Florida which suffered through hurricanes Helene and Milton in 2024, climate damage is one of the first topics that is discussed when you meet someone. The devastation is mostly cleaned up, but the repairs linger and many homes are being torn down. If a home suffered damage of more than 50% of its value, it must be a teardown. The word on the street is that 42,000 homes might be removed by the time FEMA packs up.

If climate risk is important to home buyers, real estate websites have much catching up to do.

According to a Redfin-commissioned survey conducted by Ipsos late 2024, 56% of Millennials and 50% of Gen Z say climate change directly influences where they choose to live. That number drops significantly for older generations – just 31% of Boomers and 40% of Gen X reported the same concern. 

Here in Pinellas County, Florida, which is located on the west side of Tampa, I can tell you that 100% of buyers are focused on climate risk.

Despite the growing demand for climate-related transparency, brokerage websites still lag in delivering this type of data that today’s buyers want. While some platforms have started offering basic flood-risk indicators, very few provide climate impact data down to the property level. Even more surprisingly, there’s virtually no access to a home’s actual climate damage history – not from national portals, not from local broker sites.

Why does climate data matter in real estate search?

This isn’t just a theoretical issue. Redfin’s earlier study from 2022 found that when homebuyers had access to flood-risk data, they consistently placed offers on properties in lower-risk zones. The implication is clear: access to environmental risk data doesn’t just inform – it changes behavior.

Buyers are asking more intelligent questions about their homes: Is this area prone to wildfire? Has this home sustained flood damage? Will the insurance premiums balloon over the next five years due to rising storm risks? These questions deserve answers during the home search, not after move-in.

Brokerages have a window to win – but it’s closing

Portals and proptech startups are already circling this space. If broker websites don’t add climate risk data soon, they’ll lose another opportunity to layer value in the consumer journey with their brand. It’s not just about being first to market, it’s about staying relevant to a new generation of buyers who don’t separate climate concerns from housing choices.

The good news is that parcel-level and historical climate data are becoming more accessible through new data partnerships. Cotality (Formerly CoreLogic) is a leader in climate data licensing for broker websites. Brokerages should consider integrating that intelligence into their search experiences before consumer expectations move on without them. Premium Flood Map and Hazard & Risk Reports are currently available in Realist. These tools are already widely used by over a million agents and can be a valuable resource. Agents have the ability to purchase these reports directly within the Realist platform, offering a convenient way to access detailed property insights without needing additional tools. This information can support more informed conversations with clients and enhance overall decision-making.

The predominant vendor used by Zillow and other portals is First Street. The map below depicts the flood damage from last year’s hurricanes on Zillow.com. 

We have found in our tests of First Street data that it is pretty good in general, but less informative on individual household climate risk. There are cases where homes on the same block may have greater or lesser climate risk than the house next door. 

Realtors® are already on top of this. Realist reports from Cotality and Realtors Property Resource® (RPR) are on the kitchen counter at most open houses here. Still, those are only available from your Realtor through the MLS or REALTOR® Association – an opaque process, but not necessarily a bad one. 

As a lead generator, you can put a call to action on your website to request a climate report on individual listings. However, the best practice is to include climate data on the individual listing detail page. 

Requiring registration to access climate data is another great lead generation option if you pay off the registration effort by displaying the data. 

It’s time for brokers to step up their game on their consumer-facing websites and make climate data transparent for home buyers. Don’t go it alone. Get help from WAV Group to develop your climate risk strategy, and allow us to help negotiate data licensing for climate data. 

Zillow uses First Street data, but there are better sources. We can help you find the right solution for the right price, and the strategy may include companies like zavvie that work with brokers on cash purchase programs or HouseAmp that fund pre-sale home improvement financing. 

A great strategy will often have multiple attributes to create a system of information and assurance solutions. Contact us using the form below and either David Gumpper – Primary Lead of WAV Group Technology or WAV Group co-founder, Victor Lund will be happy to help.

The post Climate Data is the Next Must-have for Brokerage and MLS Consumer Websites appeared first on WAV Group Consulting.

Making a Strong Case for Consolidation

MLS leadership evaluating a potential consolidation opportunity must assess key operational and service factors. The WAV Group Customer Index Survey provides quantitative insights that can help make a compelling case, including:

• Superior Customer Support: There is nothing more important to build customer loyalty than empathetic and efficient customer support. By showcasing top ratings in customer service, responsiveness and issue resolution, an MLS can reassure potential partners of its ability to serve members effectively. 
• Proven Excellence in Technology: High satisfaction ratings and significant engagement with MLS technologies demonstrates that your organization will deliver a relevant, easy to use and practical suite of solutions.This can also make a merger more attractive.
• Comprehensive and Effective Training Programs: A strong training infrastructure ensures agents and brokers fully utilize MLS tools, fostering increased adoption and success. With 3 years of history with over 250,000 agents nationally, the WAV Group Customer Experience Index has proven a direct correlation between training engagement and overall MLS satisfaction. Training demonstrating how your MLS technologies help agents succeed is another way to attract potential MLS partnerships. 
• Reliable and Accurate Data Quality: Trust in the MLS data is paramount; survey results can highlight superior data integrity, completeness, and compliance. The WAV Group Customer Experience Index measures perceptions of data quality for practitioners AND appraisers, the group that is usually the toughest on MLSs about data quality. Proving that appraisers believe your MLS takes data quality seriously can go a long way to prove that your MLS takes the job of data integrity seriously 
• Exceptional Responsiveness: MLSs that listen and respond to their customers are rewarded with strong responsiveness and overall scores. For example, MLSs that go above and beyond during system outages or natural disasters get credit from their customers because they appreciate it when organizations go the extra mile in times of crisis. MLS customers also appreciate it when the MLS encourages suggestions and then acts on those suggestions.  Proving this type of customer commitment can help build confidence for an MLS organization considering a merger with you. 

Winning BEST MLS Awards

The WAV Group Customer Experience Index also rewards BEST MLS Award in 7 categories. Those MLSs that beat the averages and deliver superior results in 7 key areas can celebrate and share these awards to demonstrate their commitment to excellence. 

Instilling Confidence in MLS Leadership

By leveraging the WAV Group Customer Index Survey, an MLS looking to attract partnerships and mergers can provide clear, objective proof of the strengths of its operations and the customer loyalty they have been able to cultivate. This data-driven approach helps decision-makers from other MLSs see the value of partnering with a well-established and highly rated MLS.

Take the Next Step: Build a Stronger Future with WAV Group Insights

If your MLS is exploring consolidation opportunities, the WAV Group Customer Index Survey can serve as a strategic asset in demonstrating your leadership and service excellence. 

Contact WAV Group today to learn more about how the Customer Experience Index program can help position your MLS as the ideal consolidation partner.

The post Using Data, Not Just Opinions, to Demonstrate MLS Excellence for Consolidation Discussions appeared first on WAV Group Consulting.

AI-generated image created using OpenAI’s DALL·E.

The Listing Add Edit Debate

Recently, First MLS (FMLS), operating in Georgia and other regional southern states, announced that they have selected Ocusell List for listing management—commonly known as Listing Add/Edit. This single point of entry is the front-end listing management tool that provides an API (RETS Update or other transport methods like web-hooks) to enhance MLS applications with listing data. The common term for offering brokers and agents a choice of MLS applications is “front end of choice,” but from a data perspective, the real front end is the listing add/edit.

The Trend Toward MLS System Choices

An emerging trend among MLS operators is to give brokers and agents the option to choose their preferred MLS systems. Across the nation, larger MLSs have adopted this strategy to support listing and referral expansion for MLS subscribers, including MLS partnerships, mergers, and more. According to MLS operators, these growth strategies are much easier to implement when brokers and agents can continue using the technology platforms they are accustomed to, without being forced to transition to new systems.

Data Sharing and Listing Growth Strategies

Data sharing is another listing growth strategy among MLSs, where the decision to create a neutral add/edit system versus synchronizing data between systems is a strategic choice. A front-end listing management system can more efficiently accommodate simultaneous listing additions and updates across multiple platforms compared to the more complex process of backend synchronization across disparate databases. More commonly, add/edit functions occur in native systems, with data then shared between multiple MLS platforms.

Challenges of Native Data Schema Synchronization

If you’re an MLS data expert, you understand that only a few MLS markets—such as Stellar MLS, Utah MLS, REColorado, GCAR Chattanooga, and CRMLS—use RESO standards as their native data schema. Data alignment simplifies sharing and distribution across multiple MLS systems. While RESO has made significant strides in standardizing MLS fields, its framework does not yet cover every field nationwide. Despite this, RESO standards have expanded so much in the past decade that entire nations in Europe and the Middle East are building MLS data schema based on RESO guidelines.

For most MLSs, the native data schema and business rules are unique to each system. Listing input fields and field enumerations (e.g., dropdown picklists) vary by MLS, often differing from RESO standards. If an MLS is not natively RESO-compliant, what an agent enters into the MLS differs from the RESO-standard format used for distribution to websites and MLS data feeds. Companies such as CoreLogic with Trestle, Zillow’s Bridge Interactive, Constellation Real Estate Group, and MLS Grid normalize native MLS data into RESO format for agent and broker applications like IDX. Each MLS vendor does the same to support the RESO certification process.

Defining Your Goals for Add/Edit

FBS, the provider of the FlexMLS system, has been a leader in this space. The company has integrated Northstar’s add/edit function for FBS customers in Minnesota, created a single point of entry for multiple front ends at Doorify MLS, and reduced duplicate entry in regional efforts along the Florida coast, in Pennsylvania, and in several other markets.

Michael Wurzer, CEO of FBS and a RESO Board member, shares key insights from FBS’s experience. First, “separating add/edit requires real-time updates. Though a few minutes of latency is acceptable for many cases like API data feeds to portals, agents within the MLS system expect updates to be applied instantly.”

Second, RESO certification alone does not guarantee interoperability, as MLSs can implement the RESO dictionary in different ways.

Wurzer adds, “If you want to simplify entry among different MLSs, you need to coordinate on a common input form. The RESO Dictionary is a great starting point, but coordination on implementation is required.”

Lastly, if you’re considering an initiative like this, start by defining your goals. Reducing duplicate entry should be a priority for all MLS organizations. Conducting a data analysis to identify where and when duplicate entry occurs is a key first step.

Most MLSs rely on vendors, so ensuring vendor responsiveness is critical. Adding multiple vendors increases coordination complexity, often resulting in slower response times. Defining clear goals upfront helps determine if the added complexity and cost are worthwhile. Engaging with other markets to understand vendor response times is also valuable.

The Case for Separate Add/Edit Systems

The real MLS front end is listing add/edit, and there are choices for that, too. Several markets have pioneered the separation of add/edit from the native MLS system. BrightMLS was the first MLS in the nation to separate add/edit from its core system. Initially called Keystone, it is now known as Listing Assistant. Northstar MLS also developed its own add/edit system, now available through REcore. Ocusell offers add/edit as a service, allowing MLSs to integrate listing data into any MLS system. Bridge Interactive pioneered this approach to eliminate duplicate listing input between FMLS and Georgia MLS but exited the business following its acquisition by Zillow Group.

“Add/Edit tools such as Ocusell, which FMLS recently launched, are game-changing,” said Jeremy Crawford, FMLS President & CEO. “Ocusell utilizes AI to help agents add and edit their listings with fewer keystrokes, making the process much easier. Plus, this innovative tool allows FMLS agents and brokers to input their listings once and seamlessly distribute them to other participating MLSs, saving time and enhancing efficiency.”

Compliance and Listing Accuracy Considerations

One of the most valuable MLS services for managing broker cooperation is ensuring compliance and listing accuracy. MLS rules vary widely, and the listing add/edit function serves as the primary compliance checkpoint. Companies such as CoreLogic (with Listing Data Checker) and VestaPlus (with Checkmate compliance software) integrate with add/edit systems to verify compliance with MLS rules. Identifying and correcting violations or typos at the input stage helps prevent issues before they arise. Some MLS vendors also incorporate compliance features within their native add/edit solutions.

If you are considering a change to how you manage listings, prioritizing compliance to maintain listing accuracy and prevent MLS rules violations is essential.

The post MLS Front End of Choice is Not What You Think It Is appeared first on WAV Group Consulting.

The value of MLS data lies in the work we perform to curate its quality, which is determined by three key factors: accuracy, comprehensiveness, and timeliness. These elements transform MLS data into a powerful tool for the real estate professionals we serve, and the wider community that is economically engaged in the housing market. 

The Value of MLS Data

Today, MLS data serves as the backbone for many decision-making processes in real estate. Buyer agents rely on it to identify available properties, listing agents use it to set competitive prices, and everyone uses it to market homes effectively. Additionally, appraisers, investors, lenders, and developers increasingly turn to MLS data to inform their valuations, risk assessments, and market analyses. 

However, the intrinsic value of this data depends heavily on the quality of the information it provides. Without accuracy, comprehensiveness, and timeliness, even the most well-intentioned data can mislead users, leading to poor decisions and missed opportunities. 

The Role of Accuracy in MLS Data

Accuracy is the foundation of all high-quality data. In the context of MLS, accuracy refers to the correctness and precision of the information related to a property. This includes the essential details that we collect, especially the less obvious, but equally important, data points such as listing attributes. 

The challenge of maintaining accuracy in MLS data is compounded by the sheer volume of listings and the fact that data is often input manually. Human error, outdated information, and inconsistent reporting standards across regions can all contribute to inaccuracies. As such, real estate professionals and MLS operators must implement stringent data governance practices to ensure that information is regularly reviewed, validated, and updated. 

AI represents a major advancement in data accuracy, helping to solve many problems. But an often overlooked item of data accuracy is data composition. With few exceptions – Stellar, Wardex, and others – very few MLSs have adopted the RESO data dictionary as the data schema for organizing MLS listings. Why not?

Doesn’t it seem odd that MLSs would encourage listing input fields that are different from the fields exported from the MLS? As a best practice, the data in and the data out should be identical. 

If any MLS is doing a system conversion – you are going to map the data anyway – this is the perfect time to update to RESO Data Dictionary 2.0

The Importance of Comprehensiveness

While accuracy ensures that the information in MLS databases is correct, comprehensiveness is the effort to collect data on every transaction. Incomplete property data can be just as damaging as inaccurate data, as it deprives users of the full picture necessary to make informed decisions.

Beyond the basics of location, size, and price, comprehensive MLS data includes information on a property’s history that informs market conditions (average days on the market, price trends, or buyer demand). 

Comprehensive data also allows for better comparative market analysis (CMA), used by real estate agents and appraisers to determine a property’s market value based on comparable sales. Without detailed information on comparable properties, CMAs can be inaccurate, leading to under- or over-valuations.

The Department of Justice is pressuring the industry to remove the rule mandating MLS contribution within one day of marketing a property. Ideally, the Mandatory Submission rule should remain undisturbed. The marketing part of this is inconsequential – but off-MLS listings that are not contributed to the MLS would erode comprehensiveness and lead real estate into the barbaric environment of most of the world.

The Need for Timeliness

The real estate market is dynamic, with conditions and prices changing rapidly based on a variety of factors, from economic shifts to seasonal trends. For MLS data to be truly valuable, it must be timely—reflecting the most current information available.

Timeliness in MLS data refers to how quickly data is updated and made available to users after a change occurs. For instance, when a property goes under contract, is taken off the market, or has its price reduced, the MLS listing must reflect these changes immediately. Outdated listings can lead to frustration for both buyers and sellers, as buyers may pursue homes that are no longer available or miss out on properties with new price reductions.

Moreover, market analysts and investors, banks, insurance, and governments who rely on MLS data to gauge trends or predict future market movements require up-to-date information to make accurate forecasts. In a fast-paced market, even a delay of a few days in updating listings can lead to missed opportunities or misinformed decisions.

Leveraging MLS Data as a Strategic Asset

When MLS data is accurate, comprehensive, and timely, it becomes a powerful asset for all stakeholders in the real estate industry. A key element in transforming MLS data into an asset is effective property copyright management. This begins with the authorization by the broker and agent to assign the copyright by license to the MLS. The MLS must then copyright the compilation. 

For the real estate professionals who subscribe to the MLS, and the brokers who authorize those contributions, the ability to leverage high-quality MLS data is a key competitive advantage. 

Data analytics tools can further enhance the value of MLS data by enabling professionals to conduct predictive analysis, segment markets, and identify patterns that may not be immediately apparent from raw data alone. For example, AI-powered tools can analyze historical MLS data to predict future home values, allowing agents to advise their clients on optimal buying or selling times.

In the real estate industry, MLS data serves as a critical resource, but full value depends on the quality of the information it contains. Accuracy ensures that the data reflects reality, comprehensiveness ensures that all relevant information is captured, and timeliness ensures that the data remains relevant in a fast-moving market. By focusing on these three pillars of data quality, MLS data can be transformed from a simple repository of property listings into a strategic asset that drives better decision-making and enhances outcomes for all parties involved.

The post MLS Data as an Asset: The Power of Quality Information in Real Estate appeared first on WAV Group Consulting.

Below is a snapshot of my Homebot valuation, which prompted me to look at other AVMs to compare and contrast the results. The highest valuation was the Zillow Zestimate $2.3 Million. The lowest was Attom Data at $1.6 Million. The difference between the two measuring $700k.

The role of the Consumer Financial Protection Bureau under the Dodd Frank act is to be a watchdog on emerging practices in the consumer financial products or services industry to identify and assess the impact on consumers and other market participants. In June 2023, the CFPB proposed a rule that would regulate the use of algorithms used to appraise the value of a home. At issue is the methodology of the AVMs that cloak the biased inputs in a “false mantle of objectivity.” Sadly, the CFPB proposed rule focused on mortgage originators and secondary market issuers.

Professionals in the real estate industry that help consumers buy and sell homes believe that the CFPB may have looked in the wrong direction. The beauty of the marketplace for professional AVMs used by mortgage originators and the secondary market is that they have access to AVM ratings and experience working with different cascading AVMs. Most importantly, the mortgage industry gets a confidence score on the AVM. Furthermore, mortgage originators are supported by the backdrop of professional appraisers who physically inspect each property. Consumers get none of this detail, they only see a number. 

“This discrepancy in AVM data creates a lack of confidence and more confusion to the consumer trying to decide what their options are. This can also make it harder for families to make good financial decisions, when the lack of transparency does not allow for sound decisions and action plans to be followed. In addition, seniors may be more likely taken advantage of by the disconnect on actual value versus a perceived number that may not represent what their true value is”, says Jim Black, Mortgage Loan Officer and Owner of Revest Homes, Inc. NMLS 2362319.

Jim Black, MBA 

The Consumer Financial Protection Bureau (CFPB) should evaluate consumer Automated Valuation Models (AVMs) due to their growing influence on the real estate market. AVMs, which use algorithms and vast data sets to estimate property values, can significantly impact consumer decisions regarding buying, selling, or refinancing homes. However, the accuracy and transparency of these valuations are frequently questioned. 

Zillow provides accuracy data, but it takes a bit of digging and they only drill down to the county level. There is no city data published by Zillow other than major metropolitan areas. Our county has 94,000 homes. Here is the county data from Zillow.

Zillow is only within 5% of the property value ⅓ of the time. So that puts my Zestimate in the range of accuracy of $115,000 about ⅓ of the time. Half of the time, the Zestimate is +/- $230,000. Also, 80% of the time, the Zestimate is +/- $460,000. Our county is about 80% farm, and ranch property – a category that the Zestimate has a hard time with. Something like water rights can vary the value of a ranch by millions of $USD. Similarly, a coastal town like Pismo Beach with water views is going to be valued far above a similar community like Atascadero that is 20 miles from the ocean. A city level reporting mandate with published accuracy information would be enormously beneficial to consumers.

Inaccurate AVMs can lead to inflated or deflated property values, causing financial harm to consumers. For instance, an overvalued Zestimate might lead a buyer to overpay for a property, while an undervalued estimate could result in a seller receiving less than their home’s true worth. The CFPB’s evaluation would ensure these models operate fairly, provide accurate estimates, and maintain transparency about their methodologies. By scrutinizing these tools, the CFPB can help protect consumers from potential financial pitfalls and promote a more transparent and reliable real estate market. At a minimum, the CFPB should mandate that all consumer AVMs provide a link to their accuracy data. 

Evaluating AVMs aligns with the CFPB’s mission to ensure that consumers are treated fairly and have access to accurate information in financial markets. As these models increasingly influence real estate transactions, it is crucial for regulatory oversight to keep pace with technological advancements. This ensures the protection of consumer interests and the integrity of the housing market.

If you are a broker or Realtor Association that wants to go on the offensive to support consumers, then take action and encourage the CFPB and housing authorities as a consumer advocate.

The post The CFPB Needs to Address Consumer Home Value Estimates appeared first on WAV Group Consulting.

MLSs Must Comply with the Broker Data License Agreement

Because the MLS licenses the data from the broker, they must uphold their side of the bargain. Namely, they cannot allow for the misuse of the data in ways that represent a breach of the Terms of Use outlined in the data license agreement. Some proactivity is needed. 

How Can MLSs Find Data Misuse?

Consultant Matt Cohen has done an excellent job of explaining data seeding. The MLS can put in pixels and or other information in the data that it sub-licenses and search for those seeds to make sure that the data is going where it is supposed to go. PlanetRE has a product called Sherlock.ai that takes this strategy even further. Many thanks to Subrao Shenoy for jumping on a call with me so that I could grab some screenshots.

Sherlock.ai is a part of the PlanetRE ChocolateChips.ai tool. It takes the data feed from the MLS of all photos, and it travels all through the ‘internet world’ to find every website displaying every photo. The MLS also provides a list of authorized companies/websites. In the image directly below, for a small MLS, they searched for 137,000 photos. The photos appeared in 321,000 places; noting that 200 of those places were unauthorized. They charge about $0.04 per photo to scan the web and provide the list of unauthorized users. MLSs probably only need to do this annually, unless they want to be aggressive and do it quarterly. So the cost here is USD $5,480 on this number of photos. If I were an MLS, I would only search for the primary photo on every active listing to get started. Also, partner with a law firm who will pursue copyright abuse like Getty Images has done to the real estate industry (and the rest of the internet for decades.) I would guess that it will become a profit center for the MLS – in quicktime. Courts can order damages for copyright infringement that range from USD $750 to $30,000 per item, or “willful” infringement of up to $150,000.

Sherlock.ai provides the hyperlink to the exact page where the unauthorized use is happening. In this case, a website has scraped the property photos of the home of NBA star Steph Curry and is selling copies of the photos.

We wrote about machine learning and AI in 2019 titled 10 years from now – future of real estate and everything. We forecasted that any content published on the internet would be consumed by machines. 

Many thanks for the 165,000 page views of that article where 

I clearly underestimated the rapid advance of AI. It only took 5 years.

The Existential Threat to MLS if Action is Not Taken Now

MLSs must be aggressive at protecting against the misuse of listing data. AI is only two years old and it is already incredibly capable of recompiling all homes for sale. Just look at bing.com/homes. Bing scraped Zillow and Redfin. Zillow claimed in 2017 that they would go after anyone scraping their data. Anyone can do the same thing. Just look at Bright Data (no relation to Bright MLS – but their logo is similar – even the font!) 

In August, the offer of compensation will be removed from our nations’ MLS systems. That will eliminate a key value proposition of shared commission. Remaining value will be around cooperation, specifically in the compilation and dissemination of uniform property information that is used by brokers to price and market homes for sale, and by appraisers for valuation purposes.

The MLS is a neutral third party that allows for brokerage cooperation to work effectively. It provides a system of mutually accepted rules, and regulates those rules to the benefit of all concerned. The property data set is invaluable for buyer and seller CMAs and home search.

Let’s imagine that OpenAI can collect every bit of property information ever published, combine it with public record data, organize it and make it available to any broker, appraiser, or consumer. Actually, we do not need to imagine it. 

OpenAI does collect all real estate property information today. The only missing ingredient is that OpenAI does not have the data licensing rights or permissions to the data.

Brokers join the MLS to participate in a bargain whereby each broker contributes their proprietary listing content to gain exclusive reciprocal access to the proprietary listings of other broker participants. If the MLS is not protecting the data, and brokers are the only ones upholding their side of the bargain, why belong to the MLS? Brokers can just go to bright data or any of bright’s competitors and scrape the data they need.

MLSs must protect the assets contributed by each broker, or firms will simply contribute their content to OpenAI for free, and access the listing content of other brokerage firms using OpenAI. CMA vendors like Inside Real Estate, Delta Media and dozens of others can stop paying $5 Million a year in Data License fees and access the data from OpenAI. An OpenAi driven CMA would work like CloudCMAs revolutionary 1 Minute CMA, only it would be almost instant. Moreover, consumers could simply run their own CMA without a professional.

This may be a make-or-break moment for MLSs. If they do nothing, the result may be the creation of a slow migration pattern of non-participation as tech firms recognize that OpenAI can provide them the data they need to serve their broker clients without the MLS. Data consumers like mortgage brokers and bankers can just as easily get the information they need for free, too.

Copyright Background

How the Broker “owns” the listing

I am not a lawyer, but here is my layperson’s explanation. The photograph is automatically the copyright of the photographer, and the description is the automatic copyright of the author. Because the photographer or property description writer is an artist under copyright laws, every broker needs to have two policies in place to establish their data sovereignty over the work being produced to market a property. The first policy should be established in the independent contractor agreement and employee agreement of the firm covering anyone that takes photos, writes property descriptions or enters data. Brokers need to have their agents and staff assign the photos and property descriptions to the firm along with the compilation of facts (full listing input). The broker is the responsible party and the supervisor of these activities. This policy is an effort to keep the relationships clean. The second policy is a license agreement mandate for professional photographers. The National Association of REALTORS®  has an excellent group of agreements. Be sure to pick the right one (i.e. a Work for Hire agreement might establish an employment issue in California, so don’t use that one). To find these agreements, contact NAR Legal or visit Realtor.org. Another element that is copyrightable is called the compilation. Think of a collage. There is an art to the arrangement, selection and coordination of data elements that are certainly beautiful…… stay with me here!

How the MLS Licenses the Copyright from the Broker

There are hundreds of MLSs and more than a half dozen MLS systems that, more or less, use a two pronged approach to licensing the data from the broker for MLS purposes. The first is the MLS participation agreement that brokers sign when they join the MLS. The second is a digital acceptance of the terms of use that users of the MLS agree to when they log into the MLS and/or add a listing to the MLS. The broker is essentially assuring the MLS that they have rights to the data being submitted to the MLS. Furthermore, the broker is giving the MLS the license to use the submitted data for the purpose of delivering MLS services in perpetuity. Lastly, the broker authorizes the MLS to offer limited sub-licenses the data as necessary to deliver the MLS service. Examples of this would be the sub-license of data to the MLS vendor or IDX vendors who are handling data on behalf of the MLS and its participating brokers. The broker is also allowing the MLS to include the broker’s data compilation into a new compilation comprising the data submitted from all brokers in the marketplace – and allowing the MLS to copyright that bulk compilation. Imagine that the MLS compilation is a collage of broker listing collages.

More Reading

The MLS Copyright of Listings Challenge: Understanding the Balance Between Copyright Infringement and Fair Use

The Future Role of the Photographer in MLS listings

Real Estate Must Fix the Problems with Photography

MLS Terms of Use Changes and Copyright FAQ

Ten Years from Now – The Future of Real Estate and Everything

MLSs Demand Broker Data Sovereignty

Listing Data Security

Using ChatGPT is probably an MLS Violation

The Future Role of the Photographer in MLS Listings

Flexmls Launches Photo Privacy as a Standard Feature

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