Is NAR Setting a Dangerous Precedent with Recent IDX Data Use Work Group?
The Realty Alliance Requests NAR Consider Their Concerns
Posted by: RE Technology
In the last month NAR's IDX Data Use Work Group has stirred the waters for brokerage organizations, namely the two largest: LeadingRE and the Realty Alliance. Concerned about Franchises being favored by NAR at their expense, the Realty Alliance has issued a number of letters to address their position and legal grievances.
In short, IDX is the gold standard of data. Updated every 15 minutes directly from the MLS for accuracy, brokerages and agents who belong to the MLS have the advantage of accessing and utilizing this data exclusively. IDX data is essential to building local credibility and exclusivity for brokerages, who compete against 3rd party websites like Zillow and Trulia for online traffic as more home buyers search online.
NAR proposes to give IDX data to franchises, not a part of local MLSs, which LeadingRE and Realty Alliance believe illegally positions one group for success at the expense of another. This could be in direct violation with the Sherman Anti-Trust Act.
To further outline the disadvantages of this recent move by NAR, brokerage organizations are held legally responsible for the accuracy of their IDX data. The IDX data is the property of the brokerages. Does this initiative reduce their control over their property and potentially leave them more vulnerable?
The Realty Alliance outlines their concerns with NAR in their formal letter below.