The Real Estate Transaction Standard (RETS)

The Real Estate Transaction Standard

NATIONAL ASSOCIATION OF REALTORS®

Midyear Meeting

Washington, D.C.

May 12, 2010

Real Estate, Circa 1971

• 99,000 REALTORS

• Average Sales Price: $28,300

• GCI: $1,981

• 50/50 Splits

• No Co-op With Local REALTORS

• No MLS

• Listing Form: 5”X7” Sheet of Paper

TI 2500

And Then There Was….

Electronic

DATA

DATA is….

…A representation of a fact, number,

idea…or a property listing!

Good DATA = Good Business Decisions

Decision-Makers Rely on Good DATA

RETS is a Data Transport Standard

WEBMLS

BROKER’S

IDX / VOW

SYNDICATION

PORTALS

MLS

CONSUMER

SEARCH

PORTAL

RETS

DATA

ANALYTIC

PRODUCTS

Consumers

Consumers

Consumers

Consumers

WEB

WEB

CLIENT

VENDORS

WE

B

GEO

MO

BILE

IDX

CMA

Realtors

RETS

SERVERSSubmit

Listing

Data

WEBData

Data

Realtor

APPS

Consumers

RETS in Action

RETS

Data

Names

Data

Types

META DATA

It All Begins With the Realtor’s Listing…

…And the Realtor’s Promise to the Seller

“I will sell your house”

For the highest possible price…..

In the shortest amount of time….

With the least amount of inconvenience…

(by presenting your home to the widest possible audience…)

Listings Do Have an Audience

The Audience is Hungry

(Source: www.realtors.org Jan. 2010)

And…The Audience Wants it All!

Real Estate

Property Parcel

MLS

ListingTax Assessor

Appraisal

Title Plant

Photos

Map/GISInfo Overlays

GEO Reports

Title Chains

Demographics

Schools

Now, Greater Demand for Property Data

DATA: It’s The Currency of the Transaction

eTransaction Platform (Data & Documents) eClosing

eStar

POS & LOS System

SMARTDocs

eDoc

Custodian

Closing Agent

Title Co

Attorney

County RecorderCourt House

Mortgage

Lender

Sales

Contract

REALTOR

Loan App

Initial

Disclosures

GFE, TIL

Loan App

Loan Quote

Rates &

Pricing

Lock

VOE, VOI

Credit

MI

Appraisal

Title

Closing

Documents

eNOTE

Deed

Simpli

File

Title Search,

Exam,

Underwrite

eVaulting

LOAN

SERVICING

PORTFOLIO

eDisclosures

SELLER BUYER

Archive

Paper

eRecording

eVault

eVault

Property Search, Analysis, & Contract Loan Origination / Title Exam / Closing

For Secondary Market

MLS

PROPERTY

DATAProcessing

Property

Listing

eSignatures

Lender’s Back Office

eSignatures

Real Property Transaction Mortgage & Title Transactions

Mortgage

Backed

Securities

(MBS)

FANNIE

FREDDIE

WALL ST.

INVESTORSeDeliveryeNote

Registry

Capital Markets Transaction

eNote

Registry

Securitization

Stakeholders & Standards Bodies

RETS and RESO History

1999 RETS Begins

2007 RESO

Formation

2010 R&D

Modernization

(R&D WG)

2010 IP Policy

(Proposed)

2010 501 (c) (6)

(Proposed)

All-Volunteer Participation

RESO Board Composition by Charter

Brokerages

MLS Associations

Local REALTOR Associations

NAR

Server-Client Tech Vendors

Standards-Making Process

RETS Workgroup in Action

Why REALTORS® Need RETS

Would ‘Standard Names’ Help?SOCAL

MLS

Traverse

MLS

Austin

MLSCharleston

MLS

Standard Names & Types:

The Schema Challenge

Standard Data Names Data Types / Values

ListPrice

Bathrooms

LotArea

A number or a range?

A ‘lookup’ or a number?

A number or a text string?

Our Industry Benefits from Data Standards

1. ”A CONTINUED AND STRONG FLOW OF CAPITAL INTO THE MARKETPLACE” (Data is the currency in the real estate transaction)

2. ”ENHANCE THE RELATIONSHIP BETWEEN REALTORS® AND CONSUMERS” (Property search & analysis)

3. ”BE THE MOST COMPREHENSIVE, RELIABLE, AND ACCESSIBLE SOURCE OF

REAL ESTATE INFORMATION FOR REALTORS®” (Real estate data standards)

NAR Strategic Goals

2010-2012 RESO Goals

1. Intellectual Property Ownership Policy of RETS

2. Formalize (501) and Capitalize RESO

Full-time, full service organization

3. Modernize RETS

Faster, lighter

Include more data sets

4. Standard Names Convention

Standard data names

Standard data types / values

Include Commercial property data

Other data sets

Thank You.

Travis Wright

Executive Director

Real Estate Standards Organization

twright@reso.org

281-217-2789