By Jerry Heed
The Fraser Valley Real Estate Board has approximately 2,000 members. Each year members pay about $4 million to create and maintain the MLS database, which is the main function of the board. That works out to $2,000 per member. There are some 72,000 Realtors in Canada. If we apply the same formula, it means that they pay about $144 million each and every year to create the MLS database.
At issue with FVREB Realtors is whether it is sensible to pay this huge amount of money each year to create something and then give it away to the general public for free. And further, what are the ramifications of giving something away for free through the Internet, and who should decide the course of action?
Earlier this year FVREB Realtors discovered that their board was uploading all listing information to mls.ca within 24 hours. This included new listings, price changes, comments etc. Buyer agents discovered this when they found the buyers getting new listings as fast as they were! They raised an obvious concern: why were they were having to compete with mls.ca to be on top of the market and look professional?
The crux of the matter was not whether you supported or opposed the quick upload to mls.ca, but WHO DECIDED the issue. A number of FVREB Realtors felt the issue needed to be discussed and voted on by the membership.
FVREB administration and directors were not so convinced. Thus, the petition and special general meeting on Sept. 14. The FVREB petitioners have the following concerns with the quick upload and the amount of data presented at mls.ca.
1. We believe that the ease with which the public is able to access this high-quality data at one location is training the public to work “Realtor free,” by reducing contact with all Realtors, and particularly buyer agents. This reduced contact with buyer agents diminishes the pool of pre-qualified buyers. When sellers want their properties sold, they hire Realtors to gain access to this pool of pre-qualified buyers. This is without doubt the main reason sellers hire Realtors.
2. When you provide the entire MLS database to the public for free, we believe it diminishes the perceived value of service that Realtors provide. And the public will pay us according to their perceived value.
3. A pillar of the Multiple Listing Service is the spirit of co-operation between members. The quick upload to mls.ca does nothing to foster this spirit because it unfairly favours the listing agent.
4. We believe the current format of mls.ca is tantamount to a free MLS system. We believe it will be detrimental to our industry over the long term by reducing economic viability.
Finally, the FVREB petitioners believe in the democratic process. We believe the key issues in our industry should be voted on and decided by those who pay the bills — not the bureaucrats.
Jerry Heed has been a member of the Fraser Valley Real Estate Board since 1987.
