Brokers Lose Control of Data

Traditionally, data was aggregated on a local level with an excess of terms, conditions, and criteria, all of which was deemed to be accurate. With the advent of the portals there is a movement toward the aggregation and syndication of data that has resulted in data collection from multiple sources that are not always kept updated, and is therefore compromised. The battle over the ownership of the data has resulted in certain data sources being disallowed, which in turn has further compromised the accuracy of the data. Furthermore, the data mentioned really only refers to the listing data and, while it is a key piece, it is just part of the overall real estate data portfolio—tax records, insurance info, demographic records, mortgage loans, credit reports, drive times, lifestyle information, school performance, criminal activity, etc. So now the entire industry is focused on and concerned with controlling the consumer search process, which incorporates the creation, compilation, and distribution of all data.

Innovation pushes the boundaries of existing paradigms and mindsets with new opportunities that test both current and new players. The struggle facing brokers is that decisions regarding the management of real estate data—with regard to the release, withholding, and application of data—are made by a fragmented industry and are very diverse and inconsistently implemented. Inaccuracy of data and ownership of such data has become a major issue in our industry. As a result, there are numerous models that are constantly evolving, creating voids and roadblocks that many outside the industry view as opportunities. The industry finds itself at the early, challenging stage of laying down new rules and guidelines for managing real estate data with the delivery of unique content that is unavailable elsewhere.