NAR Leaps into the Fray — In a Big Way.
The Realtors Property Resouce (RPR) is likely the most important technology story of the last few years. And it will probably be the most closely watched story for the next couple of years too.
What is the the RPR? Brian Boero from 1000Watt Blog sums it up nicely.
The NAR has taken over certain technology assets of Cyberhomes from LPS (formerly known as FNRES) in order to bring its RPR (Realtors Property Resource) project, as well as its consumer-facing play, HouseLogic, to market. To do this, they have created Realtors Property Resource, LLC – a wholly owned subsidiary of the NAR.
This is huge. A national database of over 140 million property records – eventually enhanced by property status (on or off market) data from MLSes around the country. A suite of tools built to allow Realtors to access and share this data with their clients. Even a stab at knocking off those pesky computer-generated Zestimates with a new RVM or “Realtor Valuation Model”.
This is huge. Rob Hahn, calls it a “Coming Civil War” and a shot across the bow at the local MLSes — and it’s certainly is a bold move.
But ultimately RPR is an attempt (last-ditch?) for NAR to stay relevant to its membership – since the savviest of them have long been questioning the need for a national association.
Consumers can find reams of property data on any number of real estate search sites these days. Brokers and agents have a number of low-cost tools at their disposal to build a rich and compelling online experience. And most importantly these two groups can now connect in much more meaningful ways through social media.
As Jim Duncan, writing on Agent Genius, succinctly put it; “NAR recognized the need to be competitive“.
But frankly, I will be happily surprised, if the NAR/RPR can out innovate the innovators. While they have assembled quite a team behind the project, I worry that a monolithic enterprise like this will ultimately be doomed by legislative paralysis.
For NAR/RPR to truly take a run displacing the current status quo – they need to adopt the mindset of their free-market competitors. Do something really disruptive. Here’s a few ideas:
- “Powered by NAR” – Build an API that will let engineers across the country to piggyback off of this data mine and build a thousand variations of the HouseLogic interface. Ask only for reciprocal link and acknowledgment of the source.
- Offer a challenge like the Netflix Prize – A $1 million prize for the team that can take the base RVM algorithm and improve it.
- Go open source – take a subset of the Cyberhomes code and release it to the world under a GNU General Public License – let the developers go wild and help improve the experience for all.
RPR is an important first step for NAR to take – but I’d like to see them go even further.
It’s time for a really big leap to restore the faith.
Update: You can now watch the introductory webinar in its entirety.
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8 Comment(s)
3 Trackback(s)
- From NAR LPS NPR RVM Added to Realtor Alphabet Soup | Nov 10, 2009
- From Data Sharing and The Rise of the Market Blog | Future of Real Estate Marketing | Nov 18, 2009
- From NAR’s Realtors Property Resource | Dec 5, 2009
Overland Park Homes for Sale | Nov 9, 2009 | Reply
I am definitely very excited about how this all pans out. I just hope NAR doesn’t drop the ball with something that could be really great… like they did with R.com
My one disagreement though is that NAR is worried about being relevant to its members… relevant MLS wise or relevant to the consumer… yes maybe…but association wise, any member who agrees that “the savviest of them have long been questioning the need for a national association” has no clue what NAR does to help the consumer & the industry through political action.
Chris - Calgary Homes for Sale | Nov 9, 2009 | Reply
I think opening it up as an open source real estate app is a brilliant idea. There is great value behind free and open information. Just look at Google, Facebook, Youtube etc. A more effective and more accurate tool for the consumer would surely be welcome to users as well.
Mike Hale | Nov 10, 2009 | Reply
If NAR is running it I’m sure they’ll find new, innovative ways to overcharge their members to benefit from it.
Mike Hale | Nov 10, 2009 | Reply
If NAR is running it I’m sure they’ll find new & innovative ways to overcharge their members for it.
Dave | Nov 11, 2009 | Reply
No offense Chris, but none of your “Google, Facebook, Youtube etc” company examples are open source at all.
Barrett Powell | Nov 17, 2009 | Reply
I just had a revelation…the only ones making money in real-estate are the ones selling products TO Realtors!
Even our own association has jumped on board, with “premium” service charges on Realtor.com. I’m a big fan of Open Source. I write about using Open Source in Real-Estate all the time. But making this open source will just create more ways to fleece the membership with our own tools and data.
Jumbo Dan | Nov 17, 2009 | Reply
RPR: “The Death Bell Tolls” for the Real Estate REALTOR!
Unfortunately Joel Burslem may be correct in calling NAR’s new project, Realtors Property Resource, LLC (RPR), “the most important technology story of the last few years”. I believe the Real Estate industry has just shot itself in the other knee. WHY:
What good is greater access to property provided by RPR and located in a market “outside REALTORS” have no local knowledge of, except for them to create opportunities for errorently providing misinformation to the buyer, fostering distrust, which will lower the REALTOR’s professional status in the public’s eye and even put into question the need for a REALTOR!
I know NAR will be saying: “listing information will not be disseminated to third party marketing websites unless permitted by the broker of the listing.”
Unfortunately, the REALTORS are so desperate for an offer for their Sellers in our current market environment; they will ask their Sellers what they want to do? Do the Sellers care about the process we REALTORS go through or our legal liability– NO, so they will approve this or sue their REALTOR for not offering this choice.
When our local MLS sold RE INFOLINK our data base of Real Estate history (yes I was a REALTOR when this occurred). RE INFOLINK didn’t say they were going to allow anybody who wanted to have access to get it, but now we pay them and they make more money selling advertisements on the public sites they sold the information too.
Unfortunately, in the practical application of this new service by RPR, I see the same thing happening with Internet Real Estate companies offers kickbacks if a consumer allows the “outside REALTOR” to be the selling agent. I am listening to my fellow agents who are doing both sides of the transaction work on their escrows now, but they are sure something is amiss, although they can’t prove the “outside REALTOR” kickbacks the buyers appear to be getting back.
So, let’s see – the Listing Agent does all the work and then gets sued with the Selling Agent for the Selling Agents not meeting their fiduciary duty to the buyer who wasn’t properly informed about some well known local issue or… What am I missing!!!
NAR should be spending our money on advertising to inform and insure the consumer is reminded “all Real Estate is LOCAL”. That it takes a local Real Estate specialist (REALTOR) to understand and present the local issues affecting the value and livability of a particular home site. This would insure the consumer is not just relying on the basic home information found on a web search.
ISN”T THAT WHY LOCAL MLS ASSOCIATIONS CAME INTO EXISTENCE!!!
jim | Nov 22, 2009 | Reply
I wonder what the dues for this will be. NAR should just partner with the local MLS’ to build an MLS data parser that agents could use to build custom real estate statistics.