So NAR released more information on RPR this week. So what is RPR? The initials stand for the Realtors Property Resource, a somewhat unassuming name. I assume the name was chosen intentionally to sound benign.
But the “Realtors Property Resource” is in fact a national realtor facing MLS. To make matters more interesting its 100% free for realtors. They are going to make money be selling the average sales data to other institutions like wall street to allow them to make better financial decision.
MLS boards across the country are understandably nervous. Realtors typically pay $1000 or more a year to access a local mls system. And some realtors are unhappy with handing mls fees ever year to their board. There has been no alternative for realtors in past, either join the local mls and pay whatever fees they decide to charge or simply find a new profession.
So let’s break down a comparison between RPR and the local MLS:
Local MLS
Cost: $1,000+ a year
Scope: Only homes in your region
Budget for Tools: VariesRPR
Cost: Free
Scope: National Access
Budget for Tools: Greater than any local MLS
So now with RPR not only do they finally have an alternative, buts it’s free, and realtors can not simply search for homes in their city they can search for properties anywhere in the United States, and because of a larger budget could actually have more functionality that what most realtors are used to.
So what does this mean? Basically MLS’s are going to lose revenue. And judging from what I have read they are somewhat nervous. They have been going for several years with basically no competition. Now not only do they have competition but it’s from a competitor with more development money and a free product.
So what are there options? They could try and fight the change but it would be difficult and they will probably lose in the end. If realtors in city x are still paying 1000+ a year to their board and a neighboring city is getting free access through the RPR (and the RPR is a decent system and early reports are that it is) you can imagine the kind of revolt you are going to see.
Probably a smarter move is to retool and figure out how a board can operate without control of the MLS and the corresponding mls fees.
But it’s going to be a difficult transition. The MLS boards are used to being able to say it’s our way or the highway. That era has just come to an end.
5 Comments on "Does RPR (Realtors Property Resource) = The Death of the MLS?"
We are going through something like this in California right now as there is a big push to create a statewide MLS – the process is not going smoothly and there is a lot of resistance. I think a lot of money will be spent by NAR on this and will end up being a product that will not be utilized by most members.
A consolidated MLS structure is certainly more efficient than little fiefdoms that don’t work together. It will be interesting to see how Realtor boards react to competition for the holy grail family jewels.
I think many rural areas would love this as many rural Boards don’t have very functional property searches. However, the city folks will most likely fight this.
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