MLS Data Manipulation – Sleaze or Service?

When it comes to MLS data manipulation in our industry, there seems to be a couple of ways to look at it.

One way is when some over zealous agent decides to change something as a “benefit” to their seller client to make it look like their property is new to the market or has not been listed before.

Another way is the honest and ethical way. – The way that the VAST majority of REALTORS supply data to their local MLS system.

We have been following the “Real Estate Datagate” scandal for a while now and it kind of makes us wonder how people can sleep at night. Basically, once the whistle was blown on “The Jills” in Miami, the excuses started flying…

I found some of the arrogant justifications of MLS data manipulation from these “luxury agents” to be less than impressive.

Basically, data gets manipulated to keep expired listings off of a “hotsheet” in their Florida market. The agents felt like their luxury clients wouldn’t want to be bothered or contacted by anyone but the spah-stah agents they had entrusted with their $multi-million mansions.

Thses data manipulations allegedly happened more than 550 times on more than 50 listings totalling more than $370,000,000. It probably wasn’t an accident.

“The sellers are very sophisticated and they know the agent that would be the preferred person to work with who would handle the luxury property,” said Eber. “There are just a handful of people they would call.”

Basically, data gets manipulated to keep expired listings off of a “hotsheet” in their Florida market. The agents felt like their luxury clients wouldn’t want to be bothered or contacted by anyone but the spah-stah agents they had entrusted with their $multi-million mansions.

Here’s a video that shows a “hypothetical” situation from a hypothetical mls data manipulation scheme in Florida.

 

 

This type of manipulation could be interpreted as consumer fraud. It appears to be using false and misleading information to lure buyers into believing real property is more valuable or desirable than it really is. – Robert Bass Phoenix real estate attorney

Industry Backlash:

The real estate industry seems to be using this case as an example. In fact, the brokerage where The Jills work is said to have implemented a more detailed company policy on the topic. Other agents in their market have been calling for severe punishments. . MLS data manipulation is something that should be taken VERY seriously. In my opinion, the more we take this kind of crap seriously, the better off we will be. There’s a reason why our data is important. It is important to our uur industry to have accurate and up to date information. Once the data is not accurate, it can cause  agents and consumers to miscalculate current property values.

Don’t forget, the automated property values that people seem to love get much (most?) of their data from MLS feeds. You think your Zestimate is off now? Can you imagine how screwed up they would be if MLS data manipulation was more of a widespread problem? Many companies and many industries look to REALTORS to provide accurate data to the mls so that they (and we) can track sales, trends and overall market conditions.

Unfortunately, there are many ways people can manipulate data. Even “little” things can and should be taken seriously. I am a big fan of our industry owning and controlling our own content and data. The content in the MLS system is VERY important to all of us. Large fines or a loss of license should be minimum requirements for people who abuse our systems.

Some Local Problems, Too:

While Real Estate Datagate is and was a big story, we find people in other markets doing stupid things to try and give them a perceived advantage.

Here’s an example of what your agent should NOT be doing.

I saw a husband and wife team recently cancel a listing that had been on the market for a little more than 60 days. They immediately re-listed the property with the same photos, same price, same description. The only difference was a “new” listing agent. I have seen this happen more than once. Apparently, they think the days on market for each of them stay lower when they pull this crap?

Let’s all just reflect accurate data to our mls system and let the chips fall where they may. OK?