**Subject: Elevating MLS as a Market Maker**
Dear MLS Leadership,
The real estate landscape is changing rapidly. As the marketplace adapts to increased digitization, MLS can embrace a role not just as a listing repository but as a true market maker. Even in cash-heavy areas like Cape Cod, financing offers exert critical upward pressure on pricing and drive market liquidity. Embracing and enhancing these dynamics within MLS will strengthen the marketplace overall.
**The Role of Financing in a Cash Market**
While cash purchases are prominent, financing plays a hidden but essential role. Even if a cash offer wins, financing bids drive up values, supporting the highest resale price. By making financing options transparent and competitive, MLS can strengthen the marketplace, encouraging balanced participation and broader buyer engagement.
**How MLS Can Evolve as a Market Maker**
1. **Increase Financing Transparency**: Implement tools that verify financing offers alongside cash bids, ensuring both are competitive.
2. **Invest in Tech Solutions**: MLS could adopt tools like *Home Sifter*, which enables buyers to search by payment affordability, ensuring financed buyers stay competitive.
3. **Create Inclusive Policies**: Structure policies that expand equitable access, increasing transaction volume and encouraging market confidence.
**Preparing for a Digital-First Future**
MLS can no longer rely on its traditional monopoly. National aggregators and portals are outpacing local systems, leveraging their reach to dominate the buy side. The marketplace is moving toward interconnected, digital-first solutions; MLS must innovate to stay competitive and drive growth.
**Conclusion**
MLS has a unique opportunity to embrace its role as a market maker. By investing in transparency, technology, and equitable policies, MLS can foster a dynamic, valuable marketplace that benefits all participants, keeping it relevant and competitive in the face of a shifting industry landscape.
Best regards,
Patrick Neely
Founder & CEO, *Home Sifter™*
p.neely@patrickaneelyllc.com | 609-410-2441
www.linktr.ee/homesifter
Michael Clayton explains the economic realities of digitization to (MLS Executives).
MLS - “I’m just trying to gather my thoughts together.” (Maybe we can compete on price and service after giving away the sell side content, and without the capability or capital to win the digital future.)
Michael - “you know where this goes” — (Sell side listings will be aggregated at the state and national level as Zillow also adds value on the buy side - mortgage.)
Michael - “how do I talk to you, because you need help” - (You have no internal ability to adapt to a converging supply chain and your monopoly power is gone.)
Michael - “there’s only one wrong answer and you have your arms wrapped around it.” (Your value proposition is now uneconomic and unsustainable. You don’t know how to address opportunities beyond your captive sell side franchise.)
Michael - “they are going to cut you off at the knees.” (Distressed assets waiting to be acquired, aggregated or dismantled by big balance sheets.)
MLS - “how do you know that” — (Because housing is too big and too important to remain analog, fragmented, costly and disconnected.)
Michael - “you think your judgement is state of the art right now.” (Legal issues are distracting from the strategic problem which is losing the battle for the buy side, control of associated data rights and brand equity.)
Michael - “I’ll get somebody to help you think this through.” (Ask Compass CEO Robert Reffkin, who has an obligation to his shareholders, what's at stake.}
MLS - “if your intention is to (change us), you don’t have the horses for that.” (A legacy “system” with 500 local affiliates and an ineffective national organizing force can only rely on inertia to prevent others from flipping the model.)
Michael - “I’m not the enemy” - (Whether it's the DOJ, or the Portals or the Platforms, we have no clue how to win.”)
Congratulations to all!!!