MLS collaboration aims to be leading source of housing data
REdistribute, led by powerhouses Bright MLS and CRMLS, has launched with the goal of monetizing MLS data and sharing revenue back to participants.
- REdistribute will benefit companies like mortgage and insurance firms, its leaders say, by providing access to the most accurate property information.
- 10 states and D.C. are currently in the coverage area, and REdistribute expects to have 55-60% of national listing coverage soon.
- Proceeds from the sale of data will be shared with participating MLSs.
REdistribute, a groundbreaking collaboration between some of the industry's largest MLSs, launches today with the promise of providing institutional users with the most accurate and timely data about the housing market.
What makes REdistribute unique, its leaders say, is its data source (participating MLSs) and its plan to share revenue with participants.
Currently funded by five MLSs — Bright MLS, CRMLS, BeachesMLS, REColorado and Stellar MLS — the project already has signed agreements from 16 additional MLSs and another 39 that are pending review, said Amy Gorce, acting CEO of REdistribute.
Agents and brokers are not the intended users of REdistribute. The data product is designed to help companies such as mortgage and insurance firms make better valuation and risk management decisions. The information is sold to these entities, but the public display of listing data is prohibited. The revenue is then shared with participating MLSs, who will decide locally how those royalties are used.
"Many of our participating MLSs have programs in place that distribute the revenue back to their brokers," said Gorce in an email.
The coverage area contains some of the biggest housing markets in the U.S., including California, Florida, New York and the District of Columbia. Six other states are currently covered, with six more expected to join soon, according to the REdistribute website.
Gorce is projecting that REdistribute will have 55-60% of national listing coverage in the next month and around 80% coverage by the end of the year, including all 50 states.
When announced last fall, the plan was to launch in January 2023. It was pushed to April to ensure the maximum amount of data was available right from the beginning, Gorce said.
Matt Casey, president and CEO of CRS Data, said this new product will disrupt the real estate collection and distribution model, while "simultaneously bringing innovation to the property data market."
Typically, companies like insurance firms will comb through property records and other public data for information. REdistribute aims to offer a better product for institutional clients by providing more complete and timely data tied to frequently updated property listings from the MLS.
Gorce said that for the most part, MLSs are welcoming the opportunity to bring additional value to their participants and subscribers while also benefiting from more transparency regarding the value of their data.
The arrival of REdistribute comes soon after the rollout of Nestfully, another joint operation of Bright MLS and CRMLS that will also have other MLS participants. That platform, which includes coverage in five of the 16 largest MLSs, focuses on providing a straightforward home-search experience for consumers and free leads for agents.