Listings on the Internet
In a recent interview by popular commentator Terri Murphy, Saul Klein offered his insights into the evolution of public display of residential real estate listings on the MLS and the Internet. Here’s the relevant article in The Data Advocate highlighting the “Upstream” concept and the vision of the “Property Wiki.”
The Evolution of Real Estate Technology: A Deeper Dive with Saul Klein’s Insights
Saul Klein’s reflections from 1993 offer a fascinating glimpse into the nascent stages of digital transformation within the real estate industry. His insights highlight a journey from archaic manual processes to the sophisticated, data-driven environment we recognize today.
The Primitive Digital Age: From Binders to Basic Terminals
Before the internet became ubiquitous, the real estate landscape was remarkably different. Klein vividly describes a world reliant on three-ring binders filled with MLS (Multiple Listing Service) books. These physical directories were the primary source of property information, often bulky, quickly outdated, and inefficient for broad searches.
The first significant technological leap came with the introduction of computer terminals. These were not the sleek devices we know today, but rather clunky machines often connected to a central database. Their output was typically on thermal paper, known for its impermanence and often poor readability. While a step forward from physical books, searching was still cumbersome, often requiring agents to be physically present at an office terminal.
A more public-facing innovation around 1992 was the deployment of kiosks in drugstores and other public venues. These were early attempts to bring real estate listings directly to the consumer, offering a rudimentary form of self-service Browse. While limited in functionality and scope, they represented a crucial shift towards making property information more accessible beyond the confines of a real estate office. They hinted at a future where consumers would have direct access to listings, a concept that would soon revolutionize the industry.
The Genesis of Realtor.com: Pioneering the Online Frontier
The mid-1990s marked a monumental turning point with the conceptualization of putting real estate listings on the “worldwide web.” Saul Klein, acting as a consultant for the National Association of Realtors (NAR), was a central figure in this ambitious endeavor. The challenge was not just technical, but organizational and political: convincing hundreds of independent MLSs across the country to share their proprietary listing data. Each MLS had its own rules, formats, and concerns about data security and control. Klein’s role involved extensive negotiation and persuasion, emphasizing the collective benefit of a centralized online presence.
This effort led to the formation of the Realtor’s Information Network (RIN), which served as the precursor and initial owner of what would become Realtor.com. The vision was to create the authoritative national portal for real estate, leveraging the vast network of Realtors. Klein’s success in securing the first 500,000 listings was critical, providing the necessary mass and credibility for the platform to take off. Realtor.com thus became the industry’s first official foray into online listings, setting the precedent for future digital real estate models.
The Rise of Portals and The Content Wars: ListHub and the Data Scramble
As the internet matured, Realtor.com, after being spun off and becoming part of Move, Inc., faced new competition. The “second-generation” portals like Zillow and Trulia emerged, offering user-friendly interfaces and innovative features. However, their primary challenge was content – they needed access to the vast pool of active listings controlled by MLSs.
This is where ListHub became a pivotal player. ListHub developed a robust platform that aggregated listings from numerous MLSs and then “syndicated” or distributed them to various online destinations, including portals, broker websites, and other real estate sites. It became the central conduit for listing data, making it easier for brokerages and MLSs to manage where their listings appeared online.
The “Battle for Content” intensified when Move, Inc. strategically acquired both ListHub and Point2 (another syndication platform). This move effectively consolidated control over a significant portion of the real estate listing data flow. With ListHub under its ownership, Realtor.com’s parent company gained substantial leverage. This led to ListHub imposing new rules for data distribution to competitors like Zillow and Trulia. These rules often involved stricter terms, reduced data fields, or even discontinuation of direct feeds, forcing portals to seek alternative data sources or negotiate new agreements. This struggle highlighted the immense value of real estate data and the strategic importance of controlling its distribution.
The “Upstream” Concept: Engaging the Pre-Purchase Consumer
Klein’s concept of moving “upstream” represents a profound shift in real estate marketing and client engagement. Traditionally, real estate professionals engaged with clients primarily when they were actively ready to buy or sell – when they were “downstream” in the transaction funnel. Moving “upstream” means:
- Proactive Engagement: Reaching consumers much earlier in their property journey, perhaps even before they consciously decide to move or invest. This could involve someone to simply browsing home improvement ideas, researching neighborhood demographics, or tracking property values out of curiosity.
- Content Marketing: Providing valuable, non-transactional content that builds trust and establishes the real estate professional or company as a knowledgeable resource. This could include articles on home maintenance, local market trends, school district information, or lifestyle content relevant to different communities.
- Relationship Building: Fostering long-term relationships through consistent, personalized communication. Portals excel at this by offering tools like saved searches, property alerts, and neighborhood guides. They use frequent, anticipated, relevant, and personal communication to keep consumers engaged. This creates an ongoing dialogue, ensuring that when the consumer is ready to transact, they already have a trusted connection.
- Anticipating Needs: By tracking consumer behavior (e.g., what they search for, which articles they read), real estate entities can anticipate future needs and offer tailored solutions, rather than waiting for an explicit inquiry.
This “upstream” strategy shifts the focus from simply brokering transactions to becoming an essential, ongoing resource for all things related to home and property ownership, building loyalty long before a “for sale” sign goes up.
The Vision of a “Property Wiki”: Zillow’s Enduring Idea
Klein’s commendation of Zillow’s “living database of all homes” or “property Wiki” concept underscores its groundbreaking nature. Unlike traditional MLSs that primarily focus on active listings for sale, Zillow aimed to create a comprehensive database of every home, whether on the market or not. This included:
- Public Record Data: Incorporating information like property taxes, deeds, and previous sale prices.
- Crowd-Sourced Information: Allowing homeowners to add details, photos, and updates about their properties.
- Predictive Analytics: Developing tools like the “Zestimate” to provide estimated home values, even for off-market properties.
This “Property Wiki” vision is powerful because it democratizes property information, empowers consumers with data that was once hard to access, and creates a dynamic, ever-evolving resource. For the industry, it presents both a challenge and an opportunity: embracing transparency, leveraging data, and adapting to a consumer who is far more informed than ever before.
Klein’s recognition of this idea highlights his foresight in understanding the long-term impact of open, comprehensive property data.
