By John Engel
We are facing an existential threat in New Canaan. No, I’m not talking about the annual drumbeat of laws from Hartford which strip away local control of our zoning and of our schools. I am talking about shutting down the New Canaan Multiple Listing Service. The New Canaan Board of Realtors (NCBOR) has been around since 1951 and the New Canaan Multiple Listing Service (NCMLS) has been the preferred platform in our town since 1956, serving as the vital tool for our local real estate scene. But now, we’re at a crossroads. With low inventory and growing competition from the state-wide SmartMLS, there’s a plan to shut down the New Canaan MLS at the end of the year. We are giving up on local control. Let me tell you why that’s a very bad idea.
The Current Lay of the Land
You know SmartMLS—it’s Goliath, the result of a 2017 merger between the State and Fairfield County multiple listing services. Two smaller boards, Darien and New Canaan, are struggling right now, mostly because of declining membership and low inventory. But Greenwich? They have an MLS and they’re doing just fine, showing that it’s possible to run a small MLS efficiently. Why? Policies. They make it clear: make us the priority, list everything with us. As a result, Greenwich MLS shows a complete picture of the Greenwich market and is to be admired.
New Canaan MLS and Darien MLS, on the other hand, haven’t enforced a similar level of commitment, and that’s how we’ve let SmartMLS has become the more default option. But should we give up on 63 years of local control and hand over the keys to New Canaan to SmartMLS? Absolutely not.
The Money Problem—And the Fix
The New Canaan Board of Realtors (NCBOR) is a nonprofit that relies on the for-profit multiple listing service (NCMLS) for revenue. But with fewer listings in the last two years the MLS is losing money. The board is in a tough spot, with the lowest inventory levels in 25 years. But, this too shall pass. Just like the market ebbs and flows, this low-inventory phase won’t last forever. The cycle will change, New Canaan and Darien will see more listings, boosting revenue and it will be our MLS supporting our Board, not the other way around.
The solution is to get serious about enforcing a policy that requires local agents to list with NCMLS, we can make the system profitable again. Just imagine: a full, reliable market view of the New Canaan market, tailored to our specific needs, with detailed demographic, psychographic and behavioral analysis of who is buying and selling. That’s a profitable future.
Opportunities for Growth
How do we make NCMLS work? The first step is to combine forces with Darien. We’re similar markets with similar challenges. Pooling our listings would create a stronger, more attractive MLS for both towns.
After that we should team up with Greenwich. They’ve proven they know how to run a successful MLS, and by working together, we’d benefit from their expertise.
After that the long-term growth strategy is obvious: invite agents who value what we offer, from Westport, Wilton, Ridgefield, and Rowayton, to join us. Those markets have more in common with New Canaan than towns in the rest of the state. By building a community of agents who deal with the same kinds of buyers and sellers, we’d create an MLS that’s truly representative of the southern Fairfield County market.
And, fourth, lean in to datamining opportunities. We have 65 years of data and its valuable and could be more valuable if we started asking more questions. The future lies in the data, and our ability to mine it to provide actionable intelligence to our clients.
The Risks of Monopoly
Handing everything over to SmartMLS might seem easier in the short term, but it comes with big risks. When SmartMLS becomes the only game in town, they could raise fees and cut services. “If its good enough for Waterbury its good enough for New Canaan.” I believe nothing would prevent SmartMLS from selling the business to a profit-driven private equity firm. We will lose control of our data, take direction from upstate, and end up providing a commodity service, not a superior one to our clients.
We’ve already seen this play out during the COVID-19 pandemic. SmartMLS made decisions based on what’s good for Connecticut as a whole, not necessarily what makes sense for our little corner of the state. If we give up our MLS we give up our Board and we’re at the mercy of a system that won’t care about or understand us.
Local Control Means Higher Standards
An MLS isn’t just a platform for listings. It’s a way to maintain professional standards. As real estate teams get bigger and span more markets, it’s critical that we keep our standards high here in New Canaan. By keeping NCMLS alive, we can ensure that our data is accurate and that we’re lobbying for the things that matter to our agents and clients.
A Smarter MLS, Right Here
In its current form, NCMLS has lost some of its value. We haven’t managed it well, and it’s become a commodity. But it doesn’t have to stay that way. With some policy changes, imagination, and community will, we can turn it into something superior to SmartMLS.
Our data is valuable, and because we’re closer to our members, we can gather more and better information than a statewide service. When inventory picks up, so will our revenue. If we combine with Darien or Greenwich, we’ll get to break even faster, and every new listing will be incremental profit.
Membership Has Its Obligations
Just like any private club or organization, members of NCMLS have responsibilities. We need to set the expectation that agents will list their properties with the local MLS first. We don’t need SmartMLS for our listings—NCMLS can still syndicate to Zillow, Realtor.com, and Homes.com. We must make the conscious decision to support the local market and ensure we have accurate data to make informed decisions.
Conclusion
Shutting down NCMLS would be a shortsighted move. Sure, it’s struggling now, but with a few changes, it can thrive. We’d keep control over our data, maintain high standards, and offer a service that’s more in tune with our market than SmartMLS ever could be. The future of real estate in New Canaan isn’t about taking the easy way out—it’s about making smart, strategic decisions that benefit us all.
Notes from the Monday Meeting.
Two (local) bidders want the New Canaan Board of Realtors building at 69 Grove Street. P&Z approved 4 small apartments to replace office space in the Bank building (formerly Thali). P&Z is considering 13 apartments on top of Connecticut Muffin and The Spice & Tea Exchange on Main Street.
John Engel is Realtor with the Engel Team at Douglas Elliman in New Canaan and he is looking for excuses to get dressed up this season. A-ha! Waveny LifeCare is celebrating its 50th anniversary on Friday, November 15th and it’s kind of a big deal. Ruth Lapham Lloyd got the ball rolling n 1967 by carving off a portion of Waveny and donating $1 million. 2000 people donated another $4.25 million, and ground broke in 1974. Waveny, New Canaan’s largest private employer, is a differentiator. It makes New Canaan great by keeping our seniors close to home.
