Using comprehensive data for success – RISMedia

The real estate industry is facing rapid change and uncertainty. The recent settlement with the National Association of REALTORS® (NAR) and lawsuits alleging price fixing and artificial inflation have rocked the sector. The decoupling of buyer and seller commissions further complicates the situation and requires a reassessment of how we create and preserve value. As we navigate these issues, one thing remains clear: the need for comprehensive offerings is more important than ever.

The settlement with NAR underscored the need for transparency and fairness in real estate transactions. In the past, multiple listing services (MLS) have relied on two key pillars: the unilateral offer of compensation and agent cooperation. With the former now under scrutiny and likely to abandon MLS systems, the latter is becoming more important. Agent cooperation, particularly in listing properties for sale and for rent, is essential to maintaining the integrity, functionality and value of MLS.

MLSs have long struggled to capture a significant share of the residential rental supply due to one-sided compensation offers. The rental market is not as comprehensively organized as the residential for-sale market. In addition, MLSs can and do expand their memberships with property managers. Today, over 25% of all residential sales are to investors. Why not bring those investors in and help them manage their rental supply?

This is a glaring gap, especially in today’s market where housing affordability has become an integral part of the housing ecosystem due to supply shortages and rising interest rates. More than 40% of the population rents, the monthly cost difference between renting and owning is now nearly $1,000, and for many, renting has become the only housing option from a financial perspective. To address this issue, a call to action: MLSs must take bold, strategic steps to strengthen their data dominance and deliver unprecedented value to their members and, ultimately, the consumers they serve.

To play devil’s advocate, what’s stopping major consumer portals from stepping in, offering these services, developing superior technology to integrate properties and generate more leads for members? Some are already doing this! What happens when MLS members start turning to technology companies to get the information they need?

Understanding the need for comprehensive data

The importance of data in the real estate industry cannot be overstated. The current gap in data access hinders the ability of agents to effectively serve their clients. Consumers often have more data at their fingertips than the professionals who advise them, simply because the MLS system lacks comprehensive rental listings. With so many uncertainties in the market, it is imperative that MLSs establish themselves as a reliable source of information for their members and consumers. Data-driven decision making is becoming increasingly important, which is why it is critical for MLSs to provide accurate and comprehensive information.

The value proposition for MLSs and the benefits for members

When buyer representation is the primary focus, the math is simple. If an agent can clearly demonstrate the value they add to a transaction and capture it in an agreement, they will earn a commission. While this is not an entirely new idea, it has largely been a reality in the rental market for years. Adoption in the form of comprehensive rental data and tools is quantified by providing access to billions of new commissionable opportunities. Virtually every additional rental listing in the MLS is a new tangible and valuable opportunity. Accurate and comprehensive data is the linchpin of success. For MLSs and their members, access to reliable information is critical not only to understanding market trends, but also to providing valuable insight to clients. By enhancing market insight through accurate data, MLSs equip agents with professional tools and resources so they can tap into a highly active investor network, build, grow or diversify their property management business, and provide exceptional service. This, in turn, builds trust and credibility with clients – whether tenants, landlords or property managers – by ensuring they have access to the most comprehensive and accurate information available.

Using technology for MLS success

Advanced technology is critical for MLSs to remain competitive. Platforms like Rental Beast provide comprehensive data sets that revolutionize the way MLSs access and use rental data, enabling members to deliver exceptional value to their clients. By seamlessly integrating these technologies into existing MLS infrastructure and offering robust features, MLSs can enhance their service offerings without disrupting current workflows. This approach not only increases the efficiency and reliability of the MLS system, but also reinforces its role as an essential resource in the ever-evolving real estate landscape.

Using data for a stable future in real estate

By leveraging comprehensive data, MLSs can restore their value and empower their members to do the same to confidently navigate the uncertainties of the market. The future of the real estate industry depends on our ability to adapt, innovate and deliver tangible value. Leveraging these technological advancements will ensure MLSs remain at the forefront of the industry, providing the tools and insights needed to succeed in a complex and dynamic market.

The opportunity is clear: MLSs that prioritize comprehensive data and cutting-edge technology will not only survive, but thrive, providing unmatched value to their members and the broader real estate community.

For more information visit https://www.rentalbeast.com/.