JTHS Council of the MIAMI Association of REALTORS - Jupiter, Tequesta, Hope Sound

     

                

  • JTHS-MIAMI Golf Tournament to Benefit Veterans Organization on 9/11

    Aug 10, 2017
    The Jupiter-Tequesta-Hobe Sound Council of the MIAMI Association of REALTORS® (JTHS-MIAMI) will host its 32nd annual JTHS-MIAMI Golf Tournament on Monday, Sept. 11 at the PGA National Resort & Spa in Palm Beach Gardens. Partial proceeds will benefit the Renewal Coalition, a Jupiter-based organization that assists wounded veterans and their families.
    Full story
  • JTHS-MIAMI Realtors Collect 240 Pounds of Food for Needy Palm Beach Residents

    May 16, 2017
    The Jupiter-Tequesta-Hobe Sound Council of the MIAMI Association of REALTORS® (JTHS-MIAMI) collected 240 pounds of non-perishable food for the Palm Beach County Food Bank in April as part of the JTHS-MIAMI Leadership Academy’s “Move for Hunger” Food Drive.
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  • JTHS-MIAMI Rock the Market Attracts Top Experts, Panels

    Mar 09, 2017
    Palm Beach County real estate will continue outperforming the national average because of continued population gains, a growing economy and spectacular amenities, South Florida top brokers and real estate analysts said at the Jupiter-Tequesta-Hobe Sound Council of the MIAMI Association of REALTORS® (JTHS-MIAMI) Rock the Market conference on Feb. 28 in Jupiter.
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  • JTHS-MIAMI Realtors to Host Rock the Market in Jupiter

    Feb 27, 2017
    The Jupiter-Tequesta-Hobe Sound Council of the MIAMI Association of REALTORS® (JTHS-MIAMI) will host JTHS-MIAMI Rock the Market on Tuesday, Feb. 28 at the Wyndham Grand Jupiter at Harbourside Place. The conference is designed to equip local Realtors with the latest market information, services and trends so they can better serve their clients.
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  • Lynne Rifkin Elected 2017 JTHS President of the MIAMI Association of REALTORS

    Feb 10, 2017
    The MIAMI Association of REALTORS® (MIAMI) has elected Lynne Rifkin, Broker Associate, ABR, MRP, PMN, SRES as the 2017 President of the Jupiter-Tequesta-Hobe Sound Association of Realtors (JTHS) Council. She and the entire 2017 JTHS Board of Governors were installed Dec. 2 at Frenchman’s Creek Beach & Country Club in Palm Beach Gardens.
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  • JTHS Realtors Collect More than 500 Holiday Toys for Local Children

    Jan 09, 2017
    The Jupiter Tequesta Hobe Sound (JTHS) Council of the MIAMI Association of REALTORS® (MIAMI) collected more than 500 toys for local families in need this holiday season during its first JTHS Young Professionals Network Toy Drive on December 15.
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  • JTHS Realtors to Host Educational Breakfast with Palm Beach Schools Superintendent

    Jan 09, 2017
    The Jupiter Tequesta Hobe Sound (JTHS) Council of the MIAMI Association of REALTORS® (MIAMI) will host a “Make a Connection” Breakfast with Palm Beach County Schools Superintendent Dr. Robert Avossa as the featured speaker on Wednesday, Jan. 18 at the Eastpointe Country Club in Palm Beach Gardens.
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  • YOUR July Minute with the JTHS President

    Jul 29, 2016
    Announcing Important Upcoming Events
    Full story
  • Jupiter Broker Patti Fitzgerald Appointed to Florida Real Estate Commission

    Mar 03, 2016
    The MIAMI Association of REALTORS® is honored to have one of its members, Patti Fitzgerald, named to the Florida Real Estate Commission, which administers and enforces real estate license law. Fitzgerald is a past president of the statewide Florida Realtors association and is currently a real estate broker associate and manager for Illustrated Properties in Hobe Sound.
    Full story
  • YOUR February Minute with the JTHS President

    Feb 18, 2016
    We are halfway through February. Time goes by so quickly. Our JTHS Leaders continue to focus on goals to maximize our Member's strengths. Our Professional staff continue to make enhancements to products and service offerings.
    Full story
  • Sue Gaieski Elected 2016 JTHS Council President of the MIAMI Association of REALTORS

    Feb 18, 2016
    The MIAMI Association of REALTORS® (MIAMI) has elected Sue Gaieski, e-PRO, SFR as the 2016 President of the Jupiter-Tequesta-Hobe Sound Association of Realtors (JTHS) Council. She and the entire 2016 JTHS Board of Governors were installed Dec. 11 at Frenchman’s Creek Beach & Country Club in Palm Beach Gardens.
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Broker AVMs

by | Apr 21, 2014

puzzleOne of the core services of brokerages and their agents is pricing property. In the olden days, it was less scientific than it is right now. On an individual property, agents deliverCMAs or BPOs. Today, using MLS data, brokers are now automating their services. Sometimes this service is called Automated Valuation Modeling, or AVMs.

There is a healthy and robust marketplace for AVMs in the financial services industry. Banks want to know the debt-to-equity ratio on homes they hold mortgages on. They also want to use AVMs as a method to validate home appraisals. Government uses AVMs to make monetary policy surrounding affordable housing and interest rates. Of course, the government also wants to make sure that their sponsored entities like Fanny Mae and Freddie Mac are making healthy loans. Insurance companies want to use AVMs to calculate property insurance rates and claims. Investment analysts use AVMs as a measure of the health of the real estate market that correlates to an exhaustive set of predictors on where stock prices are going for both individual companies, as well as sectors of companies. Largely speaking, brokers have been cut out of this marketplace.

Historically, the financial services industry has been fed AVMs that are based upon public record data. As industry experts understand, public record data lags behind MLS data by weeks or even months. Moreover, the detail of the property tax record is simple, and does not take detailed housing features into account. The National Association of REALTORS®worked with the federal government and other entities after the housing crisis to point out that using active listing data in monitoring the health of the real estate industry would have allowed them to "see" the housing bubble as the number of for sale homes in the MLS swelled, and along with it – days on market and wider gaps in list-to-sell ratios.

MLS users knew what was going on well in advance of public records. Public records first displayed lower volume and, along with it, lower prices. It was not until pre-foreclosure and foreclosure records began to hit public records that the financial market saw the bubble. By then, it had already burst.

Knowing that a broker's data in the MLS has value to the financial industry, the National Association of REALTORS® founded a company calledRealtors Property Resource™ or RPR. RPR is unique in that it combines public record data with MLS data to provide services to the financial services industry. In exchange for the data license from MLSs, RPR provides REALTORS® with a valuable reporting service so that they can provide the best market information to the customers they serve. They also offer REALTORS® an AVM called the Realtor Valuation Model™ or RVM. The RVM is also a tool REALTORS® can provide to their clients as another reference to Zillow's consumer AVM, called the Zestimate™. Recently, RPR has also delivered a beta product that allows brokers to display the RVM on their consumer facing websites.

CoreLogic is among the leaders in providing the financial services sector with AVMs. They reacted to the launch of Realtors Property Resource by offering to pay MLSs a data license fee so that they could create similar products as RPR for the financial market, products that combine MLS data with public record data. In an update sent to MLSs last week, CoreLogic mentioned that 100 MLSs now license data to them and that they have paid out $1.8M in licensing fees. Some MLSs pass this income or a portion of it back to brokers. Others use the income for delivering more services or offsetting dues.

There are a number of brokerages that agree NAR and the MLSs are doing a great job of moating the industry by carefully constructing data license agreements for the use of broker data in the financial markets for AVMs. There are other brokers who disagree. They believe that MLS data and the services that are fed by MLS data are the providence of brokerage. Some believe that MLSs are using their data to provide "brokerage services" in a way that limits the broker's ability to construct organizations that will meet the needs of the financial industry. In parlance, there is a great debate about who has the ability or right to this data and its uses.

Brian Larson of the law firm of Larson/Skinner is running a series of articles on their blog that dig into the MLS rules and regulations regarding the use of MLS data by brokers to perform AVMs. In truth, NAR has not provided MLSs with clear guidance beyond the overarching statement that MLSs "may not preclude participants (brokers) from engaging in otherwise permissible activities."

NAR is in a tricky spot. The Department of Justice is advocating for a free market in brokerage that allows them extensive use of MLS data. Although their settlement regarding Virtual Office Websites was related to working with consumers through electronic display, it is not clear where it limits electronic use. Moreover, NAR has invested dearly in the development of their product for the financial services industry. If brokers have an open door to deliver competitive products, it will join the CoreLogic effort to increase competition and possibly reduce the market opportunity. Some brokers have said that NAR should recuse itself from defining the policy on the issue because they have a horse in the race.

Some Guidance: Data Licensing is a core service of the MLS. If brokers do not approve of particular uses of their data (by any party) outlined in those licenses, they may opt-out. The "opt-out" is a powerful right that brokers are rarely denied. I applaud all parties involved in this policy consideration for allowing broker AVMs until such time as time as the policy is clarified. It would be anti-competitive to do otherwise if MLSs are licensing data for AVMs to other parties and not its own broker participants.

If your MLS does not license broker participant data to any party for this use, and you want to wait until the policy is clear – that is probably a cautious but acceptable tack. If your MLS does not license data to anyone for AVMs today but you want to give your broker participant a go-to-market advantage, license it to them first – but do it carefully and understand that this issue is still somewhat up in the air. Under no circumstances should an MLS "preclude participants from engaging in otherwise permissible activities:" National Association of REALTORS®.

Follow the discussion at LarsonSkinner.com

As a consulting firm, we have no vested interest in the outcomes of this policy refinement, although we do recognize that it will have a lasting impact on the business of our clients. We do believe that it is incumbent upon the MLS policy committee to clarify this issue at the upcoming NAR Midyear Realtor Party meetings in Washington D.C. this May. MLSs and brokers alike should become fully aware of this issue and share their opinion with their leadership for representation at the MLS Policy Committee meeting. Send a letter to your MLS or make a call today!

Disclaimer: WAV Group clients include The Realty Alliance, The National Association of REALTORS, and CoreLogic. We also have deep respect for the work of Larson/Skinner in representing their clients on contracts related to data licensing.