Three large residential brokers pool their web resources

Real Estate Weekly, August 9, 2000 by Natalie Keith

The city's three largest residential brokerage firms are joining forces to establish a multiple listing service in early 2001, whereby brokers and homeowners will be able to view a central database of real estate listings combined from the three companies.

Beginning Jan. 1, 2001, The Corcoran Group, Douglas Elliman, and the Halstead Property Company will pool their real estate listings instead of each company maintaining its own list. Brokers and homeowners will be able to access the list through a web site. Combined, the three companies hold an estimated 50 percent of the Manhattan listings.

The Corcoran Group and Douglas Elliman have agreed to spend $2 million on the system. The Halstead Property Company, the third largest residential real estate firm in the city, has committed as a founding member, according to published reports.

The site will list properties for sale or rent in Manhattan, including cooperatives, condominiums, and townhouses.

"By partnering with our colleagues and creating the multiple listing service, we will be providing an effective, efficient way for our agents to reach even greater heights of success," said Clark Halstead, Founder and Managing Partner of the The Halstead Property Company.

Multiple listing services are used in many other places across the country, but in New York City, brokers traditionally have kept their lists to themselves. Under the joint venture, all Manhattan real estate brokerage firms will be invited to join the new service. The Real Estate Board of New York has been invited to provide advisory and consulting support.

Currently brokerage companies exchange information in a process calling co-brokering, whereby firms share some of their listings and then divide up commissions after a sale. Under the current system, however, some brokers may be tempted to retain new listings so they can earn the entire commission, which is typically six percent of a sale, real estate officials said.

"This new system is one of the most exciting new developments in New York real estate in years and will have a tremendous impact on the way real estate agents conduct their business," said Pamela Liebman, Chief Executive Officer of The Corcoran Group.

A multiple listing service benefits both the buyers who have access to the maximum numbers of listings and the sellers, who are assured the maximum number of potential customers, according to real estate officials.

"The MLS system has proven to work in other locations throughout the country, and it will also meet with great success in Manhattan," said Alan Rogers, Chairman and Chief Executive Officer of Douglas Elliman.