Tech Giants Redefine MLS Standards in Shifting Real Estate Landscape

Written by:

Steve Marcinuk

Date:

15 Apr 2025

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A world without the MLS is a Wild West Show… it’s like not having a Department of Motor Vehicles and buying a new car,” says John Heithaus, Chief Marketing Officer at Ocusell. His comparison illustrates a notable shift in the real estate industry—private technology companies are increasingly establishing standards traditionally set by industry associations.

New Governance in Real Estate Data

The Multiple Listing Service (MLS) has served as the foundation of real estate transactions for over a century. These systems have evolved from paper listings to sophisticated digital platforms, with most owned by local Realtor associations operating under National Association of Realtors (NAR) guidelines.

According to Heithaus, we’re witnessing “the beginnings of a rules-based society, a rules-based business model that we’ve never really seen before to this extent.” This change isn’t about replacing the MLS but rather about who determines the standards for how it operates in the digital age.

“The MLS is more important than ever, and there’s no getting around it,” Heithaus emphasizes. “The world without an MLS would not be pretty, as flawed as it may be, or old school in some aspects, and slow moving in some markets.”

Zillow’s Expanding Influence

The most visible example of this shift is Zillow’s recent moves to establish its own listing standards. Zillow and eXp Realty announced a “consumer-first commitment to real estate transparency,” with eXp Realty pledging to post listings in the MLS within one day of publicly marketing them to consumers.

More significantly, Zillow declared it would ban homes initially marketed only to select buyers from appearing on its platform—a direct response to a new NAR rule allowing sellers to delay broadly marketing their homes.

“Zillow is stepping in for NAR’s role to regulate something at a national level,” Heithaus observes. This represents a fundamental power shift in the industry, where a private company is effectively enforcing standards traditionally established by industry associations.

The Enduring Value of MLS

Despite the changing landscape, Heithaus maintains that the MLS provides essential functions that cannot be easily replaced. “[The MLS] provides every attribute of a well-functioning real estate market—property listing, representing buyers, public records, property history, detailed photos, environmental information, neighborhood data—everything.”

With a market cap of $15 billion, Zillow could theoretically attempt to replace the MLS system, but Heithaus argues they should have no interest in doing so: “Who wants to be the MLS? It’s like taking over the motor vehicle department. Think of all those people, the yelling and the screaming and the paperwork… who in their right mind would want to take that over?”

Industry Consolidation

As technology companies assert more influence, the MLS landscape itself is changing. “The larger MLSs are going to have to become more dominant, and they’re going to have to merge somehow,” predicts Heithaus.

This consolidation is already underway. “Some MLSs are breaking down their borders. They’re doing more than just data sharing,” Heithaus explains. Some forward-thinking MLSs are even building their own databases to reduce dependence on traditional MLS software providers.

Yet Heithaus cautions against wholesale reinvention: “We need to get back to fundamentals and understand that the foundation [of the MLS system] is solid and doesn’t need to be replaced. It just needs to be modernized and built on.”

PropTech’s Supporting Role

Technology companies are finding opportunities to enhance rather than replace the MLS ecosystem. “That’s where good PropTech comes in,” says Heithaus, noting companies working on innovations like AI-powered photo parsing and other tools that make the existing system more efficient.

These technologies help MLSs create “more cooperative business arrangements, which are better for consumers and better for agents, because it’s creating more commissionable opportunities.” The goal, according to Heithaus, should be to “circle around the MLS and find ways we can make it better, not tear it down.”

Navigating the New Landscape

As private technology companies increasingly set the rules for real estate data sharing and marketing practices, the industry faces fundamental questions about governance, access, and control. The traditional model where industry associations like NAR established standards is giving way to one where market-dominant platforms can effectively enforce their own rules.

This shift creates both opportunities and challenges. Technology companies may move faster and adapt more quickly to changing market conditions than association committees. However, their primary responsibility is to shareholders rather than to the broader real estate ecosystem.

For real estate professionals, understanding this evolving dynamic is crucial. The MLS remains central, but its development is increasingly influenced by forces outside traditional industry structures. While the foundation of real estate data sharing remains intact, the question of who shapes its future—and how—continues to evolve.