MLS Update: Two Services May Vie for Residential Business

The media have used such words as “cat fight” and “war” to describe the dispute over the creation of a multiple listing service that will incorporate all New York City residential listings into one user-friendly database. Indeed, last month the residential real estate community broke into two factions, both claiming that they will have a working MLS up by January 2001.

As reported by GlobeSt.com earlier this month, the Corcoran Group joined with Douglas Elliman, and later the Halstead Property Group and Bellmarc Realty, to create an MLS system. That’s when the fun began–the four firms control 68% of NYC’s residential real estate market, and the move created ripples of anxiety in the industry. Some 45 residential real estate firms, including 16 of the top 20 in NYC, immediately formed an MLS Task Force to create their own system, also aiming for a January 2001 start-up.

Why the argument? Explains William Zeckendorf, chairman of Brown Harris Stevens, “Corcoran and Douglas Elliman were forming an MLS, and they owned it. We, meaning the other brokerage firms, were told that we should call them to sign up, and we didn’t think that was in the spirit of the MLS. We just didn’t think it was fair for two to make the rules for everyone.”