Wednesday, April 11, 2007

Leadership Decisions

Way back in 2004 our local Association of Realtors (KGVAR) made an agreement with a division of the local newspaper (Kingman Daily Miner) to have them produce a listings magazine for Realtor Members only in return for a limited set of data from our then locally controlled MLS (then controlled by the KGVAR).

The Miner used the data from the MLS to set up a search site for listings that would be placed on the main site of the Miners website. Buyers had the opportunity to see listings offered on that site that were listed for sale. Sellers, for the most part, probably didn't even know that their listing was available at that resource but wouldn't have minded since it offered the listing more exposure. Since the data was coming from the Members MLS, the only listings included on that website were offerings from Realtors. The Miner also sold differing packages to Members to offer certain enhancements in the same vein that REALTOR.com does.

In the agreement there was a condition that the magazine would only allow Realtor Members to advertise in the book. The reason at the time was that there were a few advertisers (such as builders and lenders) that were basically advertising their products that would shut out Realtor Members from being able to represent clients and thus making money. It was fair at the time because there was no stipulation on who could advertise in what was then called the 'Home Showcase' and competition is a healthy thing.

Many Members were upset because probably 95%, or more, of the 'Showcase' was supported by Members advertising dollars. The Board of Directors from 2004 worked hard on making an agreement that was a win-win for both the Miner and for the Members. I was part of the leadership team as a Director in 2004 and fully supported the effort.

The result was that the new magazine, called the 'Kingman/Golden Valley Real Estate Guide', filled up quickly with advertising and the old 'Showcase' faded into oblivion (in fact I don't think it is offered any longer).

Now lets go to the year 2006. I was president of KGVAR that year and helped an effort to create a regional MLS, which turned into WARDEX (Western Arizona Realtor Data Exchange). I ended up on the WARDEX Board of Directors as well. The WARDEX go live date was in late October of 2006 and the newly formed WARDEX would be in control of all the data. WARDEX is made up of Realtor Members in the three main communities of Mohave County; Bullhead City, Lake Havasu City, and Kingman. The Board of Directors is made up of three Members from each local Association.

The group from the Miner was notified that they would have to make an agreement with WARDEX to continue to have access to the MLS data (now the MLS is referred to as a 'data exchange', but I'll keep it simple and use MLS in reference). Keep in mind that WARDEX was in its infancy as an organization. While I argued that the data stream from the MLS should continue to be offered to the Miner, I was simply outvoted when the time came to make a decision. Because of this our local Association's agreement with the Miner was breeched.

Well guess who is advertising again in the 'Real Estate Guide'?? The very same builders that are not Members of the Association or of WARDEX (and thus do not offer listings in the MLS or the cooperating offer of commission).

My broker was president of KGVAR in 2004, he is also a local home builder and the project that he spearheaded during his term is now all but wasted. It was an important project to him because of how he values Membership to the Association, not to mention that he offers cooperative commission.

Today my broker is mad at the Miner and is pulling all of his advertising from that publication. I told him he should be furious with WARDEX and to make a case with that leadership group (which I am a Member of) to make good on the deal that was made a few years ago.

On the subject of data sharing I think the leadership group at WARDEX has been shortsighted to this point. I have often argued that our MLS should be looking for more avenues to put listing information in front of potential buyers on such places as the Miners website locally, AND with the big search sites like Google, Trulia, Zillow, and others. After many months of my arguments, I am seeing the light turn on among my fellow leaders a little bit. I will use the latest local developments to embolden my case because it is even easier now to point to the fact that our Members are being hurt to some degree by the actions of the WARDEX Board of Directors.

Leadership decisions are vastly more important that Members think at most times.

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