Expanding Global Consumer Transparency, Broker Collaboration, and Industry Innovation

By Arianna Marino | December 17, 2024

 

In December 2023, over 100 MLS, Association, PropTech, and brokerage leaders from 32 countries embarked upon Paris, France, for the inaugural International MLS Forum spearheaded by the Real Estate Standards Organization (RESO) and the European Association of Real Estate Professions (CEPI). I was incredibly fortunate and honored to host and moderate the event. 

The forum was organized to discuss the future of global real estate but primarily focused on the starting block for progress: a common data standard creating a unified “language” of real estate regardless of borders. That standard, of course, is the RESO Data Dictionary, which is the standard in North America and has expanded into over 20 countries. 

Current Global Data Landscape
In most countries besides the US and Canada, real estate markets are loosely regulated and have virtually no centralized data repositories or standards. Generally, most brokers focus on hyper-local markets that cover neighborhoods rather than cities. Buyer and seller broker cooperation are also the exception, not the norm. Together, this hyper-local focus coupled with the lack of broker cooperation has limited the need for robust data repositories - which in the states, we would call MLSs. 

However, as it tends to do and as has been proven by other industries, the digital age has rewritten the dynamics of the real estate profession by empowering the consumer with more information. Now more than ever, consumers desire to have as much information as possible to make the best decision possible. With consumers demanding more market data and information, and with the opportunity to leverage new technologies to scale a broker’s business, the global real estate industry is waking up to the idea of data-powered tools and resources as a critical component of their business. 

Building With a Unified Global Mindset
MLSs and Associations across the globe are starting to take action. With real estate consumers demanding more insights into the biggest purchase of their lives and with the emergence of PropTech companies bringing valuable process and efficiency improvements for both consumers and agents, these MLSs and Associations are hoping to organize their respective markets in a way that benefits all stakeholders. 

As those conversations ramp up, the natural tendency is to build these MLSs with standards that best fit a hyper-local market without thinking about how they fit into the “bigger picture” of integrating into regional, state/provincial, national, and international data systems. Building highly bespoke and contrasting MLSs would bring about highly disparate and isolated markets, leaving stakeholders to navigate many different platforms, interfaces, and systems to shop and find real estate.

Instead, building an MLS using a comprehensive and globally accepted data standard creates an agile framework that allows even the smallest real estate markets to participate in the global property search landscape and take advantage of industry-leading innovations. We learned these lessons the hard way in the U.S. market, and global MLSs and Associations have an opportunity to do things differently from the start.

RESO Leading the Charge
Creating a single global data standard may seem daunting, but RESO has emerged as the leader in this massive effort. RESO's commitment to expanding its focus globally has significantly impacted the industry's perspective, both internationally and domestically.

Globally, stakeholders are rapidly adopting the RESO standard, recognizing the clear advantages of a potential universally interoperable market. This increase in RESO standards adoption has been particularly pronounced over the past two years. Whether enhancing agents' understanding of local, regional, and national markets or fostering the growth of domestic PropTech companies, the benefits of the RESO standard are evident.

Domestically, organizations and companies are increasingly recognizing the power of a global standard. Especially since it's our home-grown standard, data sharing has become a strategic tool for MLSs in recent years, enabling agents to gain deeper insights into feeder or secondary markets. With foreign buyers accounting for an annual average of 10% of the US housing market, MLSs with large populations will soon be able to establish data-sharing arrangements with countries that traditionally invest in their markets.

Who Benefits from a Global RESO Standard?
First and foremost, a single data standard fosters transparency for all stakeholders in a real estate transaction: consumers, agents, financial institutions, and governments. 

Imagine a world where a property's specifications, transaction history, and market trends seamlessly flow across borders, accessible to consumers and professionals alike. Such transparency breeds trust, empowering buyers and sellers with the insights they need to navigate complex markets confidently.

A unified standard propels broker-to-broker collaboration. By speaking the same “language of real estate data,” brokers can effortlessly share information, streamline transactions, and expand their networks across geographic boundaries. This collaboration transcends competition, enriching the industry's collective knowledge and enhancing the client experience.

Perhaps most importantly, a single data standard catalyzes industry innovation. With a solid foundation of accessible and standardized data, PropTech companies can efficiently develop cutting-edge solutions that revolutionize real estate, further empowering consumers and real estate professionals. In other words, with all real estate data built under the same standard, PropTech companies can build a single product with identical inputs in every market abiding by the standard. 

Adopting a single data standard is the surprisingly simple answer to the complex challenges facing the global real estate industry. It is a necessary first step in guiding us toward a future where real estate borders blur, collaboration flourishes, and innovation knows no bounds. As MLSs, Associations, and stakeholders embrace this paradigm shift, they pave the way for a more transparent, interconnected, and dynamic real estate ecosystem that empowers consumer transparency while opening up new business opportunities for brokers around the world. 

Learn More and Take Action
The inaugural International MLS Forum's success spurred the organizers and participants to hold the second iteration of the conference, which will be held October 7-8th in Milan, Italy. 
While the first conference was primarily focused on Europe, this event will include representatives from Africa, Asia, and the Middle East. It will be my honor to once again host the event, and I look forward to seeing many of you there.