Although NAR officials downplayed the implications, the association’s moves this week to create a nationwide property database and a new consumer site are almost certainly the first steps in a plan to dominate the on-line real estate business.
While nothing is official, NAR seems likely to jettison its relationship with Move.com, taking control of its own destiny. The association has also moved to make international business a top priority (see “NAR Reworks Approach to Global Business”), a new proactive tactic which could help position the group in a competition with the likes of Trulia and Zillow.
Pundits are already busily analyzing the ramifications of the latest moves, which include the acquisition of LPS Real Estate Group and its technology to create a nationwide database of public record property information, and the launch of a new consumer site, HouseLogic.com. (More detail on HouseLogic is expected this week at the NAR Convention in San Diego.)
The new database, which is called Realtors Property Resource, is a “giant middle finger to some very significant players,” including MLS technology vendors, data providers and major brokerages, writes Robert Hahn on his Notorious R.O.B. blog. He predicts the moves will lead to war, with NAR challenging the status quo.
Brian Boero of 1000Watt Consulting called it a “a defensive, almost quixotic move by the NAR, which seems to be wishing, once again, that Realtor value can be secured behind barricades and that 1 million-plus Realtors is a good thing.”
It’s easy to mock the NAR’s attempt to move into a predominant consumer role, given its track record. (Homestore resulted in an accounting scandal and an array of criminal charges—it doesn’t get much worse than that.)
But NAR would have plenty of ammunition in this fight, beyond its relationship with brokers around the country. (“Fact is, once RPR is in your market, every Realtor will use it,” Hahn writes. “It’s that good.”)
NAR’s secret weapon could be international, in particular its existing bilateral agreements with associations in 59 countries. The ability to create an international database of listings could help position a new effort to grab consumers and add value for brokers through international exposure. In the past, NAR has relied on its relationship with the International Consortium of Real Estate Associations (ICREA) to address international issues, but now it is certainly equipped to forge ahead to create its own international network.
For its part, NAR emphasized that it comes in peace. “RPR is not a national MLS, and will carry no offers of cooperation and compensation,” NAR c.e.o. Dale Stinton said in a press release. The RPR data is simply another resource for its members, he said. The new entity “will complement, not compete, with MLSs and CIEs,” he added.
But clearly there is more going on than the information detailed in the press release.
