Harrisburg Real Estate Weblog

Since the National Association of REALTORS® (NAR) first unveiled the REALTORS® Property Resource (RPR) at NAR’s Convention in San Diego this past week, I have been intently following and participating in the online conversation so that I can fully understand the breadth of this behemoth.  My conclusion thus far – - – This WILL change everything!  From how individual REALTORS® in the field do business to how local Association’s and MLS‘s operate to how the consumer perceives us.  Trust me; this is the biggest thing to happen to our industry in last twenty-five years.  Nothing even comes close.  What is amazing to me is that most REALTOR® (my guess is 90%) haven’t even heard of the RPR yet.  Mention the RPR and it’s like watchin’ deer in the headlights.  Most have no clue.

Why is that?  Why the indifference?  My guess is that our industry is so focused on pulling itself out of the economic malaise of the past sixteen months that this game-changer has gone unnoticed.  In addition, even though it has been introduced, you can’t get your hands on it yet.  (NOTE: The official release date of RPR is sometime in April of 2010.)  It’s all talk and talk is cheap.  Most REALTORS’® attitudes mirror a line from one of my favorite movies, Jerry Maguire: ”Show me the money!”  Not literally; but figuratively.  They want NAR to, “Show me the product!”.

In case you don’t want to watch the 90 minute NAR webinar or read the press release or read the hundreds of real estate blogs that are covering this important endeavor, here is a condensed synopsis for you.  I’ve added my own thoughts and musings after each bullet point to give you my take and to make you think.  If you think that I’m too far “out there”, feel free to ignore the commentary sections.  I won’t be offended.  WARNING – even though this is condensed, it’s still a bit lengthy:

• RPR is a wholly owned, for-profit subsidiary of NAR, which projects a profit after four years of operations.  NAR has purchased the assets of Cyberhomes from Lender Processing Services (LPS) for $12mm and expects to invest a total of $20mm over the first five years.  LPS is the nations’ leading provider of mortgage processing services, settlement services, mortgage performance analytics and default solutions. 

Commentary: The dollar figures here are staggering.  If this project fails (or it becomes a shadow of its initial self), members will march on NAR’s headquarters with pitchforks in their hands.  It won’t be pretty.

• The business model for RPR is to take the public data from LPS, combine it with MLS data from participating MLS’s, create in-depth data products then sell them to various institutions, including government agencies such as Fannie Mae, The Federal Reserve, etc. as well as financial institutions.  No raw MLS data will be provided to data customers; only the derivative products will be sold.

Commentary: NAR is banking on receiving some nice pocket change from these entities for this rich data.  It remains to be seen whether these customers will actually ante up.  If revenue projections fall short, who’s going to keep the boat afloat?  Member’s dues?  (See “pitchfork” comments in previous bullet.)

• The RPR will provide an exclusive,  national, comprehensive data source for NAR members.  Some of the information compiled will be tax and assessment data; property data; neighborhood, school, demographic and psychographic information; and maps, trends and reports.  The RPR’s national demographic information, along with enhanced search capabilities, will allow a REALTOR® anywhere in the country to provide more information to their clients.  The enhanced search features will allow nationwide depth of property searches, as well as market-to-market comparisons.  Advanced User Profile Features and social networking components will help REALTORS® create referral communities, as well as reverse-prospect specialized property types to REALTORS® throughout the country.  REALTORS® will be able to provide customizable Competitive Market Aanalysis’, property profiles, etc. all for free.  This data will not be shared with consumer based websites so it is proprietary to NAR.

Commentary: I’ve seen some of the sample screenshots of this information and how it will be presented.  If RPR can deliver the goods all I have to say is, “Wow!” 

• RPR will feature complete on/off market MLS content for all property types, including all current imagery, all historical imagery and virtual tours.  In order to collect this data, cooperation by MLS’s across the country is necessary.  There will be no revenue sharing with a participating MLS’s or with participating brokerages.  However, RPR estimates that the value of the free public information via RPR, as well as the RPR user interface software, will save MLS’s from between $25mm and $30mm per year.

Commentary: This is perhaps the most challenging piece of the RPR puzzle that I’ve seen yet.  I’m not sure how NAR is going to convince every MLS to agree to give them their information so RPR can enhance it, add depth and richness and then provide it to REALTORS® for FREE.  If I’m getting this amazing, super-charged property info from RPR, why do I need my local MLS?  Why am I paying MLS fees?  What will happen to local associations’ MLS revenue streams?

• The RPR will not have offers of cooperation and compensation which means it is not being billed as a national MLS.

Commentary: All NAR and RPR have to do is flip a switch and it becomes a national MLS.  They may not flip the switch at the onset but it’s available if they want it.  If it walks like a duck and quacks like a duck . . . well, you know where I’m going with this one.

• RPR will feature a Automated Valuation Model (AVM) to be called REALTOR® Valuation Model (RVM), which is created by taking the existing industrial-grade AVM’s that lenders and financial institutions use and combining on and off-market information from MLS’s for greater accuracy.

Commentary: Think Zillow‘s Zestimate on steroids with more accuracy.  If you’re not a fan of AVM’s, Zestimates or the new RVM, all I have to say is, “Get over it.”  It’s here to stay.  As REALTORS®, we need to learn how to use the tool.  (Sorry – I’ll climb down off my soapbox now.)

• The MLS’s (that opts-in) will get a branded version of the RPR system to integrate into their MLS system.  This will allow members increased efficiency by clicking right from a listing inside the MLS and landing on a MLS branded/integrated version of the RPR.

Commentary:  How cool is this!  (Not sure if this comment counts as commentary.)

• There will be a Virtual Office Website (VOW) API (Application Programming Interface) for RPR which means members will be allowed to share RPR data with clients via a VOW.  Let me back up and explain what a VOW is.  It is a concept that allows a visitor to a REALTORS’® website to access property information after they register on the site with a valid e-mail address.

Commentary: Here’s another sticky wicket.  If NAR and RPR claim that this information won’t be available on public websites but turns around and allows agents with VOW’s to use it then the consumer will essentially have access to RPR.  I feel like I’m chasing my tail on this one.  If (repeat – if) this is in fact true, NAR and the RPR will need rules and regs out the wazoo to cover this.  I see lots of potential for abuse here.  I wouldn’t want to be on the sub-committee that writes the rules for this bag of snakes.

So that’s what I know at this point.  Since the roll-out date for this massive undertaking is supposed to take place during the second quarter of next year, I suspect that some of these facts may be massaged a little bit to address concerns of all the parties involved.

Let me end this post by quoting a familiar MLS line:  All information contained within is deemed reliable but not guaranteed.

Related articles of interest:

• Cheaper Prices – More Than Tax Credit – Motivating Home Buyers (usnews.com)
• NAR 2009 EXPO – Top Real Estate Technology (retechworld.wordpress.com)