This will be fun to watch!

‘Fort Lauderdale Realtor Group sues Miami Realtor Group’

The South Florida Business Journal reports things are heating up in South Florida.

“Through its false and deceptive advertising and other contact MAR has brazenly sought to drive and has driven members away from RAGFL and diverted new members from joining RAGFL thereby causing damages to RAGFL,” says the complaint, which alleges violations of the Lanham Act.

I can’t believe they cited the “Lanham Act”.

A few thoughts about what I’ve been hearing and observing about the state of MLS systems and vendors

Flash’s dead, baby.

I’ve written about the problems and issues of some MLS vendors MLS platforms be written in Flash. and now this, Adobe announced they will no longer continue to develop a Flash version for mobile devices. So to me the debate ends here, MLS vendors who’s new versions rely upon Flash have two choices. Develop a separate HTML5 or equivalent version of their MLS system or create separate “native” versions of their MLS systems that run on mobile devices (iPhone, Droid, iPad, etc.). Either prospects are not great, but….

I’ve seen Discover MLS’ offering and now recently got a sneak peak at LPS’s REinsight new MLS system and was impressed (both are built using Flash). They not only look great, from a UI perspective, but there is some real innovation going on. One of things that struck me about LPS’s REinsight was the blending of the LPS public records data along with MLS data. This is great for creating all inclusive CMAs and other reports. Plus from a map search perspective you can see an MLS listing and also click on the property next to it (that might not be in the MLS database) and up pop public records data, which is super cool. One database, no need to exit out of the MLS system and log in to a separate app, the data is all on the same map/listing view.

I haven’t yet seen CoreLogic’s Fusion product (also developed in Flash) but I have to imagine an MLS system integrated with RealList data would be a hit. CoreLogic does have some hurdles, Tempo, doesn’t work on any browser except Microsoft’s Internet Explorer. And now Fusion won’t run on an iPad. Not anyone’s fault, who could have predicted the iPad’s popularity. But some MLS Vendors, like Solid Earth, appear to be heading to an “iPad first” strategy.

One argument I hear a lot from these MLS Vendors is that according to their analytics less than 2% of MLS subscribers are using iPad to access their current MLS systems. This is just whistling through the graveyard in my opinion.

The Octagon

The issues I talk about above really make for some interesting thoughts about the competitive landscape of MLS Vendors. I see a few scenarios.

Innovation. MLS Vendors who have MLS systems that run on multiple devices, won’t have to develop or mange multiple code bases. These MLS Vendors are free to leverage their develop resources towards other innovations instead of solving cross compatibility issues. A huge advantage as I see it.

Less choice. With the recent acquisition of Tarasoft by CoreLogic lowered the choices in MLS systems vendors. And with CoreLogic still dominating the public records side (has anyone really canceled their RealList contract as RPR has suggested?) are they getting “to big to fail”? Put in another way, do MLS Providers want to have a single vendor control so much of their mission critical applications and data?

It seems the value proposition for other smaller (alternative?) MLS Vendors are starting to get more attractive.

1. Don’t put all your eggs in one basket.
2. More innovation
3. More personal service.

Sounds good to me.

New Business Models

The reality is that its hard being a pimp. MLS system sales have always had a long sales cycle and with the down real estate market not many large/medium MLS Providers are in a hurry to go thru a conversion. So some MLS vendors are opting to start new business models. FBS comes to mind. MLS Providers are also branching out. Metrolist’s Marketplace comes to mind.

Focus is also becoming a big factor. I noticed this in two areas recently.

1. LPS sold their broker and agents division (now R.E.D. Real Estate Digital)
2. CoreLogic recently sold their Membership Director product back to MMSI.

Welcome to the 3rd Party

I also see a big boon for 3rd Party Software developers in the future (hooray!) Managed and standardized databases and APIs are all in the near future. The aforementioned Marketplace is a perfect example of a new distribution model for real estate specific web apps to be sold. If MLS Providers and Vendors can successfully change the behavior of MLS members to look to buy these apps through a portal, and that portal is easily accessible through their MLS system, 3rd Party software companies stand to benefit immensely. Talk about “non-dues revenue”!

You are witnessing the rebirth of MLS Vendors

I see in 2012 MLS Vendors hammering out their strategy for the next NAR annual meeting Orlando. At that conference I think we are going to see a lot of new innovative stuff, not just from the product side but the re-invention of what it means to be an MLS Vendor going forward. I’m excited about the possibilities.

Yesterday Dale Ross, CEO of RPR, wrote a blog post named “The Future?“. The fact he used a question mark isn’t surprising.

Mr. Ross is a bit perplexed on why many MLS providers have not chosen RPR or continue to use their competitors for what he calls “short-term gains.” He references a widely distributed blog post written by Kim Prior of OnBoard Informatics, called “MLSs Taking Control of Destiny – a Plea, an Observation, a Call to Arms“. (Sound the trumpets!) Her post is a bit naive but does lay out challenges many industries face including the MLS.

When RPR launched Mr. Ross stated their plan was to have RPR break-even in 3 years. It’s been a bumpy road since then as many MLS providers challenged their value proposition. In his post Mr. Ross repeated RPR’s value proposition as this:

“What RPR seeks to offer NAR members is REALTOR® control of property data, analytics and valuations.  At the core of the RPR system, the licensed data provided to the MLSs by brokers is aggregated with the additional licensed parcel-centric data.  RPR then seeks to return valuable tools to REALTORS® designed to bring national and local information as well as agent and broker support systems directly where they are needed the most, at market level to benefit the consumers, but provided by REALTORS® to reinforce REALTOR® value. ”

The linchpin to this strategy is how “valuable” the tools RPR is providing. In a recent blog post Brian Larson asks many MLS providers to consider this before resigning with RPR. Reports have suggested that usage of RPR’s toolset are very, very low even by 3rd party software standards. Recently RPR has refocused efforts to improve this.

I’ve been creating and selling software solutions for REALTORS since 1992 and feel your pain. Based on that here a some suggestions for RPR to consider.

1. Stop complaining. NAR has committed 20 million dollars to you and ponied up another 12 million to buy assets to get you started. Add to that you also have a rock star team that includes Marty, Mona, Reggie, Ohan, Kristen and others. Nobody gives a shit about your problems, implement.

2. Don’t be greedy. I still think that sharing future revenues from MLS data with MLS providers is the right thing to do. Look at it this way, I bet you CoreLogic paid 100 times more towards the CIVIX settlement than RPR and still was able to share revenue back to the MLS via its data deals. In that situation who’s the better “industry partner”?

3. Make a product agents love. This is the hard part. But, I guarantee you if the RPR toolset was something agents actually loved all these barriers with MLS providers would disappear overnight. But so far, other than NAR cronies, I’ve never really hear that agents really LOVE RPR’s tools.

4. It’s NOT the data stupid. Data, data, data is all I ever hear from RPR. It should be User Experience, User Experience, User Experience! I’ve had a few off the record conversations with trainers at MLS providers tasked to train on RPR. The feedback has been the same, it’s “too complicated”, it does “too much”. So how about introducing a stripped down version that offers less flexibility but gives the agents something quick and easy. Your data means dick if nobody can figure out how to get at it or how to use it.

5. If you can’t beat ‘em, join ‘em. It would be interesting to see what Zillow, Realtor.com, Trulia, and other industry 3rd party software developers could do with RPR data. Hell, Zillow is swimming in money since their IPO. How about striking a deal with them for an API to RPR data? Get them, and others, addicted to RPR data.

You’re welcome. : )

Blanche Evans is back! The real estate writer who’s articles brought down REBIG in Chicago has just posted another doozy!

In Part I of an article she calls “F.A.R. – Fetched Lawsuits – Part I” (c’mon Blanche how the hell am I gonna come up with a better title for my post than that!) she begins to outline the story of Instanet Solutions fight against the F.A.R.‘s for profit divsion, REIS. In what she says “could expose a dark side of for-profit real estate association subsidiaries, where member benefits come second to other agendas.”

Go read this now!

To say that Rapattoni dominates the AMS business in this industry is an understatement. Since announcing NetMagic back in May of last year Rapattoni continues it’s domination without any clear competition in sight. Has everyone else just given up?

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Gloucester/Salem Counties Board of REALTORS® Goes Live with Rapattoni NetMagic

SIMI VALLEY, Calif., October 13, 2010 – Rapattoni Corporation (Rapattoni) announced today that the Gloucester/Salem Counties Board of REALTORS® (GSCBR), located in Mantua, New Jersey, has gone live with Rapattoni NetMagic. GSCBR has been an association management software customer of Rapattoni for ten years, and it made the decision this year to transition to the company’s new internet-based product, Rapattoni NetMagic.
Rapattoni NetMagic is now being installed throughout the country and features the most robust information management tools available on the market today. The software has real-time synchronicity with the National Association of REALTORS® central database and allows the association staff to easily complete membership and accounts receivable tasks. Rapattoni NetMagic also provides an association’s members with the ability to login to the software and pay their dues, as well as register for classes, online.

Maria Whittingham, chief executive officer of GSCBR, said, “We are now up and running on Rapattoni NetMagic and we love the flexibility it gives us in managing our membership.” GSCBR serves over 1,400 members across the Gloucester and Salem counties in New Jersey.

Nick Rapattoni, president of Rapattoni, said, “We are very excited to add GSCBR to our quickly expanding roster of customers, and we know that they will enjoy all of the advantages that NetMagic offers.”

About Rapattoni NetMagic
Rapattoni NetMagic combines Rapattoni’s extensive real estate industry knowledge with the latest technologies to give associations the most powerful, flexible, and intuitive productivity suite available for managing association needs. Rapattoni NetMagic features real-time connectivity with the National Association of REALTORS® NRDS central database, and it enables association staff to effectively track, manage, and communicate with members.

About Rapattoni
Rapattoni Corporation has been serving the real estate industry under the same name and management for 40 years. The company provides an array of integrated products and services for real estate associations and MLS organizations, including an internet-based MLS, association management software, and key-less Rapattoni Secure Logon with SSO identity portals for online security and convenience. Rapattoni’s MLS products are serving approximately 300,000 users nationally and its association management customers represent more than 85% of the nation’s REALTORS®. Rapattoni’s headquarters are in Simi Valley, California.

For more information, contact Rapattoni’s Public Relations department at (800) 722-7338 or visit the Rapattoni website at http://www.rapattoni.com/.

I wanted to share a few thoughts and observations about the C.A.R. Expo held at the Anaheim Convention Center last week. The event was fantastic. Good attendance and, at least from my experience, real estate agents were buying.

I barely had time to recover from CMLS 2010 in Chicago when we rolled in and set up our booth on Tuesday. There was a lot of “haven’t seen you in a long time” sarcasm from a lot of the vendors.

Opening day they billed as “Tech Tuesday” and the show floor was open from 5PM to 8PM. Of the 70 orders we took during the show we did over 10 on Tuesday so I was a nice start.

Simon Baker

Now back to the show….

Although I’ve seen the C.A.R. shows have lots more exhibitors the overall attendance was good. The Orange County Register had an article about the show you can read here, 1 and includes lots of photos.

I saw some interesting booths and products. One of the clever things I saw was at the Discover MLS booth. They were using a special display overlay device on an iMac to demo their MLS product. I took out my iPhone and shot this quick video.

I went to the MLS committee meeting hoping to catch the calREDD update. But had to leave early since the other topics took up a lot of time. But it doesn’t sound like I missed much. From what I was told Art Carter‘s update was less than 5 minutes.

Oh what a difference a year makes!

Word on the street is that Art Carter is going to announce a new name change for MRMLS this week.  Since the “merger” of calREDD and MRMLS speculation has been high if they would keep the MRMLS moniker or possibly switch to the calREDD branding.

My guess is that they will come up with something entirely new.  Anybody on the Interwebs have a guess on what the new name might be?

Teresa King Kinney

Rumor has it the REALTOR Association of Greater Miami (RAMB) and the REALTOR Association of Miami-Dade County are merging.  And it looks like CEO Martha Bullman of Miami-Dade will be retiring.  Long time CEO, Teresa King Kinney, of RAMB will be leading the new effort.

Rumor also has it happening as soon as August 1st.

This could have huge consequences and might result in a domino effect for other South Florida associations.  Who could be next Fort Lauderdale, South Broward, and/or Palm Beach?

Time will tell.

No use crying over spilt milk.

We’ve been getting a lot of good comments, tons of traffic, and I’ve been also receiving a few e-mails too.  More and more information is coming out.

If you are interested check out: New CALMLS Business Proposal, the CALMLS Merger FAQ, and this handy dandy comparison NEW CALMLS Vs. OLD check list: CALMLS and MRMLS Joint Initiative Proposed.

It’s still not clear whether or not the C.A.R. board of directors has approved the “merger” and the $750,000 extension is cash (calREDD had already blown through 2.5M of the 3M they originally asked for) but I think we can assume it will be approved, nobody will lose their job (calREDD, as predicted threw their MLS Vendor under the bus) and new CALMLS is ready to roll.

So taking a fresh perspective what do we have here.  As I’ve mentioned before Art Carter has done an excellent job at MRMLS.  He was also instrumental in the formation of CARETS.   His organization is everything the old calREDD was not: professional leadership, a proven MLS Vendor, plus they are now open to multiple MLS systems, and most of all a proven data sharing platform CARETS.  So we should be willing to give this new CALMLS a shot.

I stand by my earlier prediction that Art will have a tough time signing up any MLS providers beyond Southern California but as I hinted before that doesn’t mean CARETS can’t flourish.  And what’s really wrong with that anyway?  Why the need for one statewide MLS system?  Why not just one statewide database?  eNeighborhoods essentially pulled this off for a brief time a few years back with MLS Alliance.

So let C.A.R. revise history all they want (we all know the Emperor has no clothes).  Sure the CALMLS board will be stacked (what board isn’t?).  But a one database solution is really compelling, and maybe, just maybe C.A.R. will finally come to the same conclusion.

Besides the whole calREDD drama was getting kind of well…boring.  Looking forward to seeing what CALMLS can pull off.  Onward and forward.

If you look up Fiasco in Wikipedia you get this result:

“In English the word fiasco means an absolute, abject or utterly humiliating failure”

Anyway you slice it calREDD was a true fiasco.  But you just know that the California Association of REALTORS (C.A.R.) is going to spin this whole mess in to “this was our plan all along.”  So put on your tin foil hats to protect yourselves from the C.A.R. reality distortion field.

Here’s some questions I’d like answered.

1.  Where’s the 3 million dollars?  I bet you its almost all been spent.  And how many agents did they get to sign up?  Maybe 1,000.  Do the math.

2.  Which begs another question.  How much more money are they going to ask for?   Remember the saying “fool me once, shame on you, fool me twice shame on me.”  Shame on you C.A.R. board of directors if you give these clowns any more money.

3.  Who responsible for this mess?  Is somebody going to get fired? They should. Or are they gonna to throw their vendor under the bus? My guess is these C.A.R. douche bags are so chicken-shit that their MLS vendor will get the blame and everyone else gets to keep their job.

4.  Who is going to control this new calREDD/MRMLS entity?  I’m curious how many seats does the 1,000 calREDD users equate to?  Waaaaaaay too many is my guess.

The man who would be king.

Art Carter aka "King Arthur"

In the King Arthur legend a young boy pulled a sword out of a stone and the village knew that he was the true king.  In our story Art Carter aka, “King Arthur” is going to have to pull a rabbit out of a hat to make this new combined entity (calREDD/MRMLS) a success.

I’ve seen Art do some magic before. He just has to make sure this time that the rabbit doesn’t eat all his “CARETS“.  If you get my meaning.

Prediction:

A good friend once told me that the only reason California is one state (instead of Northern Callifornia and Southern California) is water rights.  So here’s my prediction.

The “merger” will go down as expected, C.A.R. will spin some story to save face.  King Arthur will go after SoCalMLS, and possibly a few others in Southern California and have some success.  But the state-wide MLS train will stop there.  Beyond any existing contracts, no significant Northern California MLS providers will sign up for this new entity (maybe a few tiny associations looking for a subsidy).  One off-shoot is that CARETS may expand, which would be good for C.A.R. members. That’s it. Fin.

Now, if I close my eyes and don’t make a sound, I can hear Russ laughing all the way from Chicago.  : )

So good luck King Arthur.  And stay classy C.A.R., stay classy.

UPDATE:

Check out this FAQ.  It confirms calREDD has blown through 2.5M and wants 750K more.  Classic!