The New York Board of Real Estate will now charge consumer-facing portals $ 3,000 a year, or $ 250 a month, for their syndicated listing.
The change comes after the commercial organization. started offering syndication – submission of listings to brokerage houses and consumer websites – free of charge in 2017.
So why now? REBNY needed to offset construction and maintenance costs to run the Residential Listing Service and address the thousands of inquiries the platform receives, a representative said. The organization declined to specify how much it spends on these costs each year.
The measure occurs when REBNY tries to construct a consumer side of your RLS. The group reached an agreement with the residential technology platform Homesnap to launch this year, as The royal agreement previously reported. The trade organization has also been working to clean up the data on the platform, and last year implemented fines to obtain inaccurate information or listings that violate discrimination laws.
REBNY declined to comment on the Homesnap deal.
Like other MLSs across the country, RLS chose to have providers pay a nominal fee as it spends more to “improve our data quality and transmission standards,” said Clelia Peters, RLS Co-President and President of Warburg Realty. .
REBNY has over 37,000 active listings and brokers have the option of placing their listings on 14 portals through the RLS Direct Network or 80 websites through ListHub.
Sites like Apartments.com, Realtor.com, and other portals can expect to start paying fees sometime this year. Most of the responses have been positive, said the REBNY representative.
A representative for Realtor.com said in a statement that the company will continue to work with industry members independently, citing an understanding of the challenges that come with feeding and distributing data when operating an MLS.
But not everyone agrees.
Phil Horigan, founder of Leasebreak, a New York-based short-term rental market, sent an email Thursday condemning the fee. He called it “destructive” and argued that smaller websites might think twice before deciding to use the RLS integration system.
“This decision could stifle innovation and lessen competition to reach more consumers,” Horigan said at the e-blast. He added that it could result in the loss of thousands of free leads for agents.
A REBNY representative argued that the decision has nothing to do with agents and brokers. Several other industry leaders responded to Horigan’s electronic blast with a backlash.
Stephen Kliegerman, president of Brown Harris Stevens New Development Marketing, called Horigan’s remarks “outrageous.”
“Why wouldn’t it be reasonable for the RLS to charge fees to companies that benefit from the data provided by the RLS?” Kliegerman wrote in an email to Horigan seen by The Real Deal. “Attacking RLS in this way when your business benefits from information provided by our industry is beyond shocking.”
In response, Horigan said, “As agents know, we are 100% free to post and all leads go to agents for free.”