Southwest Indiana Association of REALTORS®. Indiana Regional MLS Overview. Indiana Regional MLS. The Environment we live in… (the real train that we are on) MLS vendor revenues – nationally 10 years ago $500 million Today $100 million Number of MLS vendors – nationally
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Southwest Indiana Associationof REALTORS® Indiana Regional MLS Overview
Indiana Regional MLS The Environment we live in… (the real train that we are on) MLS vendor revenues – nationally 10 years ago $500 million Today $100 million Number of MLS vendors – nationally 10 years ago 22 Today 10 ** statistics from Ciney Rich, LPS
Indiana Regional MLS in Indiana (provided by IAR)
Indiana Regional MLS • The REALTOR® response across the nation • More than 60 Regional MLSs in America No two exactly alike • Common Attributes are: Increased staying power Increased buying power Efficient and Cost effective Offer access to information over large geographic regions • Regional MLSs offer more and better products and services to their members – who are the paying customers! ** Indiana Regional MLS Business Plan, page 4
Indiana Regional MLS • What has been our Hoosier response? • IAR sponsored meetings – 34 Associations, 13,000 REALTORS® - 2010 Talked about group buying power • Split into “Northern” IN and “Southern” IN groups – Oct 2011 • Met with “Southern” Associations and MIBOR – Dec 2011 – Apr 2012 MIBOR process did not work • April 26, 2012 - 4“Southern” Associations went to first “Northern” meeting Mid-Eastern (Muncie), Bloomington, Crossroads (Columbus), Southwest (Evansville) • It then became the Indiana Regional MLS Northern was 9 Associations representing 3,300 members Southern added 7 Associations representing 1,700 members
Indiana Regional MLS 16 Founding Associations City Members Bedford Board of REALTORS Bedford 82 Bloomington Board of REALTORS Bloomington 351 Crossroads Association of REALTORS Columbus 175 Elkhart County Board of REALTORS Goshen 295 Greater South Bend-Mishawaka Association South Bend 485 Jackson County Board of REALTORS Seymour 61 Kosciusko Board of REALTORS Warsaw 153 Lafayette Regional Association Lafayette 375 Mid-Eastern Indiana Association of REALTORS Muncie 230 Muscatatuck Board North Vernon 26 North Central Indiana Association Plymouth 152 Northeastern Indiana Kendallville 206 REALTOR Association of Central Indiana Kokomo 417 Southwest Indiana Association of REALTORS Evansville 770 Upstate Alliance of REALTORS Ft Wayne 1,192 White County Association Monticello 54 5,024 Association member counts are from IAR as of April 30, 2012
Indiana Regional MLS • WHY CREATE A REGIONAL MLS? • More cooperation with more brokers and agents is good for our brokers, good for our agents and good for our buyers and sellers. • In the past, when we have increased cooperation with more brokers, our business has always grown. • This is simply part of the natural evolution from the time when brokers did not share listings, to now when cooperation and compensation has increased business for us all. • Sellers want the widest possible exposure for the listing • Buyers want greater access to more information • Regional cooperation provides more stability and sustainability than a local association standing alone • Regional cooperation provides greater buying power
Indiana Regional MLS • This is not just about cost savings (although there will be cost savings) • This is not just about data sharing (we can data share now – at additional expense) • This is about creating an environment that will protect and preserve our members ability to do business and to have access to the best tools, as the real estate market continues to change • This is about us creating the long term safety, stability and security that cooperating with 5,000 agents can give us
Indiana Regional MLS • A 5,000 REALTOR® buying group provides more stability and sustainability as we grow into the future • 5,000 REALTORS® have more clout in the market place • 5,000 REALTORS® can better maintain stable costs • 5,000 REALTORS® can provide better services less expensively • 5,000 REALTORS® bring together the best ideas across the state • 5,000 REALTORS® can better compete with 3rd party websites • 5,000 REALTORS® can better afford the cost of potential legal challenges • 5,000 REALTORS® is more sustainable as the industry consolidates
Indiana Regional MLS The IN Regional MLS embraces the future of real estate in Indiana: • A cost-effective and cooperative effort • Best quality ideas and services from across the state • Access to expanded listing data – expanded market for sellers/buyers • Provides more and better services at better prices • Makes it easier & less expensive for users to conduct business • Creates long term safety, stability and security • It is Hoosier brokers and agents with Hoosier values
Indiana Regional MLS • What is the Indiana Regional? • One MLS system • All listings are entered, maintained & searched in one system • Common MLS & IDX rules, policies (local enforcement) • Common input sheets, forms, and associated documents • Agent listing & selling activity tracked regardless of area • Regional bills the local MLS, the local bills the users
Indiana Regional MLS • What Services will be included: • LPS Paragon MLS System • MLS Mobile for iPhones, Androids, iPads & Tablets (voice activated) • Associated Listing Documents (upload & access) • IDX smart-framing & RETS for office & agent websites • Consumer-facing listing website, leads go to broker or agent • Listing syndication under broker control • Basic virtual tours • Online webinar & video training • Toll-free Paragon technical support for end-users • Login security by Clareity - restricts access to paying users only
Indiana Regional MLS Just a note…. • ClareityLogon Security can be a revenue generator… • Clareitytells their MLSs to expect increases in the number of people who pay MLS fees. Austin TX had a 20% increase. Lafayette has had an increase. Upstate Alliance (Ft Wayne) swears by it • If we increase our 775 members by 5% (40 subscribers) - thatwould be $24,000 of addition annual revenue - versus $12,555 annual cost.
Indiana Regional MLS • Here’s How It Works: • Regional will leverage buying power • Regional will bill each local MLS a wholesale fee based on number of users • Local MLS sets local MLS fee to end user • Local MLS manages billing & collections to its member • Local MLS is responsible for rule compliance • Local MLS is responsible for local telephone support & hands on training • Local MLS is responsible for lock box system • Local MLS is responsible for new membership to the Regional Our present structure – Association and Service Corp remains the same, remains in control locally!
Indiana Regional MLS • Governance: • Board of Directors (18 members) • 2 from Upstate Alliance (Fort Wayne) • 2 from Southwest IN (Evansville) • 1 from each additional Founder • MLS Advisory Board (12 members) – appointed by Regional BOD • Recommends MLS system changes, new integrations, services & policy changes to the Board of Directors • General Manager (1-year part-time position) • Non-voting executive to oversee start-up activities & operations • Carrie Kendall, Lafayette Association Project Manager – (1 year part time position) • Oversees MLS Conversion • Julie Alert, Elkhart and Laura Raudonis, Upstate Allaince(Ft Wayne)
Indiana Regional MLS • Switchover Timeline: • 2013 1st Quarter • AREX MLS’s • 2013 2nd Quarter • Bloomington, Evansville (contract deadlines) • 2013 3rd & 4th Q Continue Conversions • Improving & Adding services • 2014 … • Final conversions in 1st quarter • Additional enhancements such as integrated public records
Indiana Regional MLS- General Questions: When do new fees begin? Upon conversion, or at a set date, such as July 1, 2013, for MLSs who have committed but not yet converted Are prices confirmed? No, prices and initial services are still under negotiations and subject to approval by the new Board of Directors Can other MLS’s join later with a seat on Board? Definitely can join. Unclear about an automatic seat on the board. The new BOD will determine how that process will look
Indiana Regional MLS Why do we want to join the IN Regional MLS now? • More cooperation between more brokers is good for our members and good for our buyers and sellers “Mr Seller, 5,000 agents will have access to your listing!” “Mrs Buyer, I can help you in over 45 counties!” • We will create more stability and sustainability for our Association as we grow into the future Lower pricing, more and better products and services More clout and stability in the marketplace Current dues structure to our members can remain stable Staffing levels at the Association office can remain stable
Indiana Regional MLS Why do we want to join the IN Regional MLS now? • Creating this structure is the first step in creating the “southern” Indiana region that we have been talking about Henderson KY Knox Co IN • We will take our role as a leading Association in the state We will be a leader in a 5,000 member buying group We will be able to shape and mold how this will work It is important to take this step now, while our Association is in a position of strength, rather than wait, until we are in a position of “need”.
Indiana Regional MLS This is not about losing control We will share control of our MLS system to gain benefits! We are gaining access to more information, more ideas, more solutions, more buying power, more long term stability. We are gaining the energy and synergy that comes from cooperating with 5,000 Hoosier REALTORS® We are staying in control of the future for our members, our brokers and agents This is about creating an environment that will protect and preserve our members ability to do business and have access to the best tools
Indiana Regional MLS • Next Steps for Regional MLS: • Finalize Business Plan & Operating Agreement • Last Workgroup meeting – August 8th in Lafayette • All Associations and MLSs will vote by August 31, 2012 • Regional Board of Directors will be seated in September 2012 • Founders will pay $2,700 in start up fees September 2012 • Founders pay upfront conversion fee of $11,000 • Begin working on Conversions & Regional
Indiana Regional MLS Next Steps for Southwest Indiana Association CoreLogic Presentation – Wednesday, July 11th Rapattoni Presentation – Thursday, July 12th Regional Presentation – Tuesday, July 19th LPS Paragon Presentation – Thursday, July 19th Solid Earth Presentation – Thursday, July 26th at 8:30 am Service Corp/Association Meeting – Thursday, Aug 2nd at 8:30 am IN Regional Meeting in Lafayette, IN – Wednesday, Aug 8th Association/Service Corp Meeting – Wednesday, Aug 15th at 8:30 am Service Corp Participants Meeting – Thursday, Aug 23rd at 8:30 am Association/Service Corp - Wednesday, Aug 29that 8:30 am
Indiana Regional MLS It has been said that, “The Regional idea is just a train ride that needs to be slowed down or derailed.” The real train is the consolidation of the industry (fewer associations, fewer vendors); the competition from big non-REALTOR® “MLS” style websites; our member’s demands for greater services with reduced costs; and the buyers’ and sellers’ demands for more information and faster service. This is the train that will not be derailed nor slowed down. We are on it whether we like it or not. So let’s not sit in the caboose pretending that we aren’t moving. Let’s get into the engine room and take our rightful place, sharing the controls.