New IDX Rule for Sign Riders

Brokers and MLSs are discussing the modification to the IDX rules and regulations that would extend the ability of a buyer's agent to advertise on a listing broker's sign. The idea came out of a think tank of agent representatives who did fewer than one transaction in the last 12-month period of time. This new initiative will allow agents doing less than one transaction per year to get free leads to generate opportunities to grow their business.

Are you kidding me?

Yes!

It is not uncommon or unusual for industries to have policies that represent a slippery slope of strategy. IDX is a policy of cooperation among real estate participants (brokers) that allows the reciprocal display of listings on broker websites.

IDX slipped a little too far away from the MLS participant sharing principles a few years ago when the NAR allowed for franchise IDX. Most participating firms did not pay attention when the issue was running through the MLS policy committee, so there was no objection to the rule until after it was passed. Once brokers learned that franchise organizations (non MLS participants) were now being provided access to the data, they got busy and reversed the policy.

The idea of IDX was to share listings with other MLS participants. Now listings are being shared everywhere. Whenever I want to have a conversation about radical real estate ideas, I call the ever-jovial fellow consultant Ken Jenny. "Would a BMW dealer ever advertise for Mercedes Benz?" he asks. "Then why would Coldwell Banker advertise RE/MAX?" he asks.

"IDX has outlived its usefulness and only allows people who do not have listings to feed off of those that do." I have heard this argument before in a variety of contexts. "Would any sane listing broker ever allow a competitor to advertise on their yard sign?" he asks.

Ken Jenny stimulated some research that the WAV Group performed a few years ago. Rather than call the listing agent, he called and emailed hundreds of agents and asked them questions about IDX listings (not their listing).

First of all, the response rate was tragic, which it still is today. Secondly, we asked them questions that were not in the data or visible in the photos, like "How deep is the pool?" Of the agents that did respond to the lead, very few of them actually went though the process to find the answer, and the no. 1 way they found out was to call the listing agent.

If the listing agent is the expert on the property, why would our industry direct the consumer to anyone other than the listing agent? I know, I know, I know. The pundits are going to talk about the ills of dual agency, yaddda, yadda, yadda. Saving dual agency, give me other reasons why.

This article is intentionally tongue-in-cheek. You should take it for what it is, editorial humor. But also take a minute to think about what the world would be like without IDX. Listing brokers would only be allowed to display their own listings on their website. They would do it beautifully, showcasing their properties with pride, not jamming every MLS listing into some god-forsaken template.

But don't go too far. We need VOW solutions and MLSs for comparable properties and offers of compensation. I just wonder if we still need IDX. I am pretty sure that we could get along without it.