The evolution and future of MLS with Greg Robertson

FAQ about this episode.

• What are the three stages of MLS evolution that Greg describes?

  Greg outlines MLS 1.0 as the pre-internet era when listing information literally existed in physical books that agents carried. MLS 2.0 brought digitization and online access while maintaining the cooperation and mandatory compensation structures that defined modern real estate practice. MLS 3.0, which we've recently entered, represents the post-NAR settlement environment where mandatory compensation requirements have been eliminated. This third stage removes one of the two foundational pillars (cooperation and compensation) that gave MLSs their central role in real estate transactions. We're living through the earliest days of MLS 3.0, making it difficult to predict how this stage will ultimately reshape the industry.

  
  

• How has the NAR settlement changed the MLS landscape?

  The NAR settlement eliminated mandatory compensation offers through the MLS, fundamentally altering how agents and brokers cooperate on transactions. Previously, listing brokers included buyer agent compensation in MLS data, creating clear expectations and facilitating cooperation. Without mandatory compensation display, one of the core value propositions that made MLSs indispensable has disappeared. MLSs now must justify their existence through other services and capabilities, operating in an environment where their traditional role faces unprecedented questioning. This change creates both operational challenges (how do buyers and sellers negotiate compensation?) and existential challenges (what is an MLS for if not facilitating cooperation and compensation?).

  
  

• Why is MLS consolidation accelerating?

  Several forces drive MLS consolidation. Technology costs continue rising as members expect sophisticated features and seamless experiences. Legal compliance requirements have expanded dramatically, requiring expertise and resources that smaller MLSs struggle to afford. The competitive pressure to offer comprehensive services makes scale increasingly important. Greg notes that the top 23 MLSs already serve approximately one million of the 1.5 million realtors in the system, demonstrating significant concentration. Smaller MLSs face difficult choices: invest heavily in technology and compliance, merge with larger organizations, or risk becoming irrelevant as members migrate to better-resourced alternatives. Economic pressures make consolidation more attractive than trying to compete independently.

  
  

• What is the data ownership debate and why does it matter?

  The data ownership debate centers on who controls listing information. Traditionally, brokers submitted listings to MLSs, which became the central repositories that facilitated cooperation. Some brokers now argue they should retain control over their listing data rather than surrendering it to MLS systems. The broker-of-choice concept suggests listing brokers might choose which other brokers can access their listings, potentially fragmenting the unified listing database that made MLSs valuable. This debate has major implications: if listing data becomes broker-controlled rather than MLS-controlled, the cooperation model that powered real estate for generations could disappear, replaced by bilateral agreements and selective data sharing that reduces market transparency.

  
  

• How should MLSs navigate the tension between innovation and legal compliance?

  According to Greg, MLSs now operate in an environment where legal compliance must come before technological innovation. Any feature that touches cooperation, compensation, or data sharing faces heightened legal scrutiny following the NAR settlement. This creates a conservative posture where MLSs become reluctant to experiment with new capabilities that might trigger legal challenges. Greg suggests that MLSs focus on providing excellent core services, maintaining reliable systems, and implementing features only after thorough legal review. While this approach may slow innovation compared to pre-settlement timelines, it protects MLSs from regulatory risk in an environment where cooperation-related violations carry significant consequences.

  
  

  
  

• What does Greg mean by "be so good they can't ignore you"?

  This phrase encapsulates Greg's philosophy about product development and business growth. Rather than focusing primarily on marketing, sales tactics, or aggressive promotion, concentrate on building products and services so excellent that people naturally want to use them and tell others about them. The best marketing comes from product quality that creates enthusiastic users who become advocates. This approach requires patience because building truly great products takes time, but it creates sustainable competitive advantages that marketing budgets alone cannot replicate. For MLSs and technology companies, this means investing in user experience, reliability, and solving real problems rather than chasing trends or mimicking competitors.

  
  

• What should real estate professionals focus on during this period of industry uncertainty?

  Greg's advice centers on controlling what you can control. You cannot predict court decisions, legislative actions, or how NAR will respond to ongoing challenges. You can control product quality, service delivery, and how well you serve your clients and members. During periods of major disruption, doubling down on excellence in controllable areas provides stability and competitive advantage. For MLSs, this means providing reliable systems and valuable services regardless of industry turbulence. For brokers and agents, this means focusing on client relationships and transaction quality rather than worrying about factors outside your influence. Excellence in fundamentals matters more during disruption than during stable times.

  
  

• Who is Greg Robertson and what makes his perspective valuable?

  A: Greg Robertson has spent thirty years building real estate technology, starting with his first software company in 1992 when programs shipped on floppy disks. His most recent venture, W&R Studios, created Cloud CMA, one of the industry's most widely adopted agent tools. Lone Wolf acquired W&R Studios in December 2020. Greg's perspective is valuable because he has lived through all three major MLS transformations, giving him pattern recognition that helps distinguish temporary disruptions from fundamental shifts. His experience spans the pre-internet era through today's post-settlement environment, providing historical context that few industry participants possess. His success building products people love demonstrates practical understanding of what actually works in real estate technology.

  
  

  
  

• What are the key takeaways from this episode?

  This episode delivers several crucial insights:

  • We're experiencing MLS 3.0 where mandatory compensation (one of two foundational pillars) has been eliminated
  • MLS consolidation is concentrating power among fewer, larger organizations
  • Data ownership debates could fundamentally reshape broker-MLS relationships
  • Product excellence creates more effective marketing than promotional tactics
  • Focus on controllable factors during periods of industry uncertainty
  • Legal compliance now constrains technological innovation in ways that didn't exist pre-settlement