There’s always something to howl about.

The end of the MLS as we know it? (Part: 546)

A few of the comments on my last post about the moves Google seems to be making in the direction of a more robust National Real Estate search have focused on what this means for MLS.

The consensus (hope?) is that Google’s move in that direction, as well as RPR, are bad news for MLS.

Maybe. Probably. But not necessarily so: There is a case to be made for the value of the local MLS in terms of Quality Assurance.

Google wants to index information, not create or validate it (think automation vs manual processes), but if Google Real Estate were riddled with inaccurate listing data, if users were consistently finding listings that are no longer for sale or that have the wrong price, that would degrade the user experience, and that is probably more important to Google than anything else, which may explain why they haven’t, and might not, leverage their position as the conduit through which most real estate traffic flows by creating a Google MLS.

The way it works now, Google’s RE data, accurate or not, leads to sites where changes entered into MLS are quickly reflected. MLS also ensures that only its members contribute listings, so there is some vetting there, as well. As a source of QA that Google does not have to set up and manage itself, the local MLS serves a purpose.

The problem is that lots of MLSs are not going to be happy with going back to their original, limited role of organizing a local market among brokers. They will be loathe to give up on the idea of “adding value” (IOW justifying fees) with things like public-facing Web sites. They also, in many cases, see themselves as a bulwark against change that they don’t like, hence their role as the enforcers of rules meant to “protect” the traditional industry — to the detriment of consumers.

(Exhibit A: MIBOR’s attempt to use NAR IDX rules to label Google a “scraper”.)

As long as that is the case, we are stuck with the balkanized, inefficient and anti-consumer “system” we have now, and that is what makes it ripe for Google to dis-intermediate it.

MLSs could save themselves by working with Google (and RPR for that matter) as the guardians of the upload, but if history is any guide, they won’t. Instead, they will assume that the status quo is unassailable, that they “own” the upload and the data it brings, will use that position to obstruct the free flow of information as long as they can, and then will wonder why their membership abandons them (the way advertisers abandoned newspapers) when Google (and perhaps RPR) open a FREE upload channel around them like the one I sketched out in my last post.

It is literally the nature of the network to route around obstacles, as the music and newspaper industries (although Rupert Murdoch still doesn’t get it as he is trying to stuff the denture cream back into the tube) have discovered, but my bet is that the MLSs, dominated by people in Murdoch’s demographic, will make the same mistake.