REBNY will charge consumer sites for the RLS feed
The New York Real Estate Board will now charge consumer portals $ 3,000 per year, or $ 250 per month, for its syndicated ad feed.
The change comes after the trade organization began offering syndication – sending ads to brokerage houses and consumer websites – at no cost in 2017.
So why now? REBNY had to offset construction and maintenance costs to run the residential listing service and respond to the thousands of inquiries the platform receives, a representative said. The organization declined to say how much it spends each year on these costs.
This decision comes as REBNY tries to create a consumer side of its RLS. The group has entered into an agreement with the residential technology platform Homesnap to launch this year, as The real deal Previously reported. The trade organization has also made an effort to clean data on the platform and last year imposed fines for inaccurate information or listings that violate discrimination laws.
REBNY declined to comment on the Homesnap Agreement.
Like other MLSs across the country, the RLS has chosen to charge providers a nominal fee because it spends more to “improve our data quality and our transmission standards,” said Clelia Peters, co-chair of RLS and President of Warburg Realty.
REBNY has over 37,000 active listings and brokers have the option of placing their listings through 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 the fees this year. Most of the responses were positive, the REBNY representative said.
A representative from Realtor.com said in a statement that the company will continue to work with members of the industry regardless, citing an understanding of the challenges of data flow and distribution when operating an MLS. .
But not everyone is on board.
Phil Horigan, founder of Leasebreak, a New York-based short-term rental marketplace, sent an e-blast Thursday condemning the charges. He called it “destructive” and argued that small websites might think twice before deciding to use the RLS integration system.
“This move could stifle innovation and reduce competition to reach more consumers,” Horigan said in the e-blast. He added that this could result in the loss of thousands of free leads for agents.
A representative for REBNY argued that the decision had nothing to do with agents and brokers. Several other industry leaders responded to the Oregano e-blast with a backlash.
Stephen Kliegerman, president of Brown Harris Stevens New Development Marketing, called Horigan’s comments “outrageous.”
“Why wouldn’t it be reasonable for the RLS to charge a fee to companies that take advantage of the data provided by the RLS?” Kliegerman wrote in an email to Horigan seen by The Real Deal. “To attack the RLS in this way when your business is taking advantage of the information provided by our industry is more than disgusting. “
In response, Horigan said, “As agents know, we are 100% free to post and all leads go to agents for free.”