Keeping The Wheels On The Bus: The MLS’s Role In Balancing Broker Needs And Market Stability

One of the most insightful observations I’ve heard about MLS leadership came from Michael Barbaro, President of Smart MLS.

“In my tenure as President of Smart MLS, I have probably met with 75 brokerages of all sizes, from single-person shops to firms with 20,000 agents. Those conversations are remarkably similar. Brokers believe in the MLS. They understand that an organized marketplace requires rules. And they generally agree with those rules – except, of course, for that one rule they don’t like.

To each of those brokers, changing or eliminating one rule seems like a perfectly reasonable request. The challenge is that the one rule each brokerage wants changed is rarely the same. One broker wants more flexibility. Another wants tighter standards. One brokerage sees a policy as unnecessary friction, while another views that same policy as essential to maintaining a fair and competitive marketplace,” Michael shared.

This is where the real work of MLS leadership begins.

The MLS exists to create and maintain an organized marketplace where competing brokerages can cooperate while still competing vigorously for business. That marketplace only functions when there are clear rules, consistent enforcement, and a commitment to balancing the interests of all participants.

The challenge for every MLS is determining how to remain broker-centric and customer-focused while still defining and protecting the greater good.

Listen First

The foundation of good MLS governance is understanding what brokers need in the current real estate environment.

The most successful MLSs do not wait for complaints to arrive. They actively seek feedback through multiple channels and create structured ways for brokers to share their perspectives.

One of the most effective approaches is conducting an annual customer satisfaction survey such as the WAV Group Customer Experience Index Survey. These surveys help MLSs identify emerging trends, understand broker priorities, and anonymously benchmark satisfaction levels against other MLSs across the country. More importantly, they provide an objective framework for tracking changes in satisfaction over time once suggestions have been addressed.

Beyond formal surveys, MLSs can make broker feedback an ongoing conversation. A simple monthly email requesting suggestions can uncover valuable insights and identify issues before they become major concerns. Some MLSs also use online broker forums, advisory groups, and office visits to maintain regular dialogue with their broker customers.

Dig Deeper Into Complex Issues

Some issues require more discussion and deserve full broker discussions. When an MLS is evaluating a controversial policy change, exploring a new technology investment, or considering a major strategic initiative, focus groups can provide deeper insight.

WAV Group has facilitated broker focus groups across the country to explore topics such as:

Reducing or eliminating overlapping market disorder
Gathering feedback on new policy being considered
Evaluating interest in new data products and services
Assessing demand for emerging technology solutions
Identifying the most valuable technology training opportunities for brokers, managers, and practitioners
Understanding broker perspectives on changing industry trends

These conversations often reveal nuances that cannot be captured through survey responses alone.

Prioritize What Matters Most

Gathering feedback is only the first step. The real value comes from evaluating suggestions and determining which initiatives will have the greatest impact on the marketplace.

MLS leadership must consider several factors:

How many customers are affected?
How significant is the pain point?
Will the change improve efficiency, transparency, or cooperation?
Can the change create unintended consequences for other brokers?
Does the request align with the MLS’s mission to support a fair and organized marketplace?

Not every suggestion can or should be implemented. But every suggestion deserves thoughtful consideration.

Close the Communication Loop

Asking for feedback and then failing to communicate what happened next is one of the biggest mistakes organizations make. WAV Group has observed significant breakdowns from the submission of a suggestion to the successful communication of the resolution in WAV Group Client Experience Index surveys across the country.

When an MLS acts on broker input, it is critical to communicate and even recognize the people who helped identify the opportunity. Communicate directly with those who made the suggestion. Then share the story broadly through broker newsletters, videos, forums, office visits, and leadership updates. When brokers see their feedback driving meaningful change, trust grows. Participation increases. Future feedback becomes more constructive.

Just as importantly, when an MLS decides not to pursue a suggestion, explaining the rationale helps brokers understand the broader considerations involved in governing a marketplace that serves everyone.

Pay Attention to National Conversations

Local feedback is essential, but MLS leaders cannot afford to focus exclusively on local concerns. Today’s brokers are increasingly engaged in national conversations around listing policies, data access and licensing, technology standards, artificial intelligence, cooperation, and consumer transparency. MLS leaders need to stay informed about these discussions and proactively engage local brokers to determine whether national concerns are relevant within their own market. By identifying emerging issues early, MLSs can often address concerns before they become significant sources of friction in their market.