Broward Council of the MIAMI Association of REALTORS

                                                                                                     

                

  • MIAMI REALTORS® Launches MIAMI Platinum PLUS for its Members

    May 17, 2018
    The MIAMI Association of REALTORS® (MIAMI) is now offering its members subscriptions to MIAMI Platinum PLUS, an exclusive and unparalleled suite of upgraded Realtor products and services, so Realtors can utilize an even higher level of industry tools to improve and expand their business while enhancing the home buying and home selling process for the public.
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  • Miami Luxury Home Sales Soar in 1Q 2018

    May 15, 2018
    Total Miami luxury home sales surged 12.3 percent in 1Q 2018 as median prices rose for the 25th consecutive quarter, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • MIAMI REALTORS CEO Named to South Florida’s Most Influential Business Women

    May 14, 2018
    MIAMI Association of REALTORS® (MIAMI) Chief Executive Officer Teresa King Kinney was named one of the top 25 Most Influential Business Women in South Florida. The South Florida Business Journal honored Kinney’s strong record of leadership, community involvement and industry innovation at an event on May 11 in Fort Lauderdale.
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  • Miami Luxury Single-Family Home Sales Jump in March

    Apr 23, 2018
    Miami luxury single-family home sales posted double-digit gains as median prices for all properties continued rising in March, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • South Florida Industrial Real Estate Prices, Transactions Rise in 4Q

    Apr 23, 2018
    South Florida industrial real estate prices increased 11.4 percent year-over-year in the 4Q 2017 and the Miami-Dade, Broward and Palm Beach tri-county region posted its second highest industrial transaction volume for the year,
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  • Patricia Anglero Elected 2018 Broward President of the MIAMI Realtors

    Apr 07, 2018
    The MIAMI Association of REALTORS® (MIAMI) has elected Fort Lauderdale broker Patricia C. Anglero as its 2018 Broward Council president. She and all of MIAMI’s leadership boards were installed Feb. 2 at the MIAMI 2018 Inaugural and Awards Celebration.
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  • MIAMI REALTORS Commercial Partners with Research and Data Firm Vizzda to Provide South Florida Commercial Statistics Reports

    Apr 05, 2018
    MIAMI Association of Realtors Commercial (MIAMI Commercial) has formed a strategic alliance with Vizzda (Visual Data) to provide The Quarterly Report – South Florida Commercial Real Estate, which will offer comprehensive commercial research and statistics to MIAMI’s 46,000 members and the consumers they serve.
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  • MIAMI Realtors Commercial Association Rebrands as MIAMI Commercial

    Apr 05, 2018
    The MIAMI Association of REALTORS® (MIAMI) has rebranded its commercial real estate organization, to MIAMI Commercial. MIAMI Commercial’s new name and logo is part of MIAMI’s successful expansion of the commercial reach of the Miami Association of Realtors that enhances the 25-year-old organization, which was formerly the Realtors Commercial Alliance MIAMI (RCA MIAMI).
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  • Miami Condo, Luxury Home Sales Rise in February  

    Mar 21, 2018
    Miami existing condominium and total luxury home sales increased in February, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • Miami Realtors Expands Presence of South Florida Real Estate at Global Expo

    Mar 14, 2018
    The MIAMI Association of REALTORS® (MIAMI) has increased its presence by 400 percent at the world’s largest commercial real estate conference, MIPIM. MIAMI Realtors will have exhibits promoting South Florida at MIPIM from March 13-16 in Cannes, France as part of the National Association of REALTORS® (NAR) expanded U.S. pavilion. This year, MIAMI has significantly expanded the U.S. and MIAMI/South Florida presence by adding its own adjacent exhibit space.
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  • Colombia Leads Countries Looking for Miami Homes in January

    Mar 13, 2018
    Colombian consumers registered the most international web searches for Miami homes in January, according to a new report by the MIAMI Association of REALTORS® (MIAMI). South Florida remains the most-searched U.S. market by international consumers and a top-five market for homebuyers in the world’s six largest regions, according to January data.
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  • Urgent Legal Alert from Florida REALTORS General Counsel

    Mar 06, 2018
    Recently, Florida Realtors became aware of several lawsuits filed against real estate brokers in Miami Dade and Broward counties concerning allegations of discriminatory advertising—a violation of fair housing laws. Specifically, brokers are being sued for discriminating against tenants with Section 8 vouchers. These violations, however, pertain to local ordinances, not the Federal Fair Housing Act. Under these local ordinances, landlords and Realtors are precluded from discriminating against tenants with Section 8 vouchers, as this falls under the protected class "source of income."
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  • Miami Condo, Single-Family Home Sales Jump in January

    Feb 22, 2018
    Miami existing condominium and single-family home sales rose in January as $1 million-and-up luxury transactions jumped for all properties, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • Colombia Tops Countries Looking for Miami Homes

    Feb 20, 2018
    Colombian consumers posted the most web searches among foreign countries for Miami homes in December, according to a new report by the MIAMI Association of REALTORS® (MIAMI). South Florida finished as the most-searched U.S. market by international consumers and is a top-five market for consumers in the world’s six largest regions, according to December data.
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  • Miami Single-Family Homes Post Fifth Biggest Sales Year in History

    Feb 13, 2018
    Miami recorded the fifth-most annual single-family home sales in county history in 2017 as total dollar volume and median prices rose at year-end and in 4Q 2017, according to a new report by the MIAMI Association of REALTORS® (MIAMI) and the Multiple Listing Service (MLS) system.
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  • MIAMI Realtors Releases New 2017 South Florida International Real Estate Report

    Feb 08, 2018
    Foreign home buyers spent more on South Florida homes and purchased more local residential properties in 2017 than the year before, according to the new 2017 Profile of International Home Buyers of MIAMI Association of REALTORS® (MIAMI) Members conducted by MIAMI and the National Association of Realtors (NAR).
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  • Jorge L. Guerra Jr. Elected 2018 MIAMI Realtors Residential President

    Feb 06, 2018
    The nation’s largest local Realtor association has elected Miami broker Jorge L. Guerra Jr. as its 2018 Residential President. He and the entire Board of Directors were installed Feb. 2 at the MIAMI Association of REALTORS® (MIAMI) 2018 Inaugural and Awards Celebration.
    Full story
  • MIAMI Realtors to Honor South Florida Real Estate Industry Leaders

    Feb 06, 2018
    he MIAMI Association of REALTORS® (MIAMI) will honor South Florida real estate’s industry leaders with its 2017 MIAMI Awards at its 2018 Inaugural & Awards Celebration today. “From educator of the year to humanitarian of the year to public policy advocates, the MIAMI Awards honors individuals and groups that made the real estate industry and all of South Florida a better place,” MIAMI CEO Teresa King Kinney said.
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  • Miami Native Brian Sharpe to Lead MIAMI Commercial Realtors

    Feb 06, 2018
    The Realtors Commercial Alliance of the MIAMI Association of REALTORS® (MIAMI) has elected Miami native Brian Sharpe as its 2018 president. He and the 2018 RCA Board of Governors were installed Feb. 2 at MIAMI’s 2018 Inaugural and Awards Celebration.
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  • MIAMI Realtors to Honor South Florida Real Estate Industry Leaders

    Feb 02, 2018
    The MIAMI Association of REALTORS® (MIAMI) will honor South Florida real estate’s industry leaders with its 2017 MIAMI Awards at its 2018 Inaugural & Awards Celebration today.
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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.

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