Five years ago few people were using the web to search for homes, two years ago the estimate was 75%, and today, its as high as 85% or more.

This section is dedicated to helping Real Estate professionals find out more about the significant marketing opportunities presented by the Internet and IDX in particular, as well as to exchange information, views and experiences.

Someone recently said that real estate agents spend most of their time and effort trying to generate sales leads.

So where are these leads coming from? Well, with an explosion of buyers now using the Internet, and that trend set to continue, the new market place is on the web.

The conclusion is simple – if you want sales leads, you better have a serious and effective way of generating leads from the Internet. IDX is a new technology development that allows any real estate agent to aggressively address this issue.

A 2002 survey by KB Homes in California, showed that 58% of home buyers used the Internet to find information on homes. According to NAR (National Association of Realtors 2000 Profile of Buyers and Sellers) Internet buyers spend 20% to 50% more on homes, close deals in half the time and are more likely to use an agent to buy or sell.

Internet Data eXchange (IDX) is the formal title for what has been called Broker Reciprocity. IDX participants agree to share active listing information with each other for the purpose of internet advertising.

The concept of IDX is simple: Each participating broker contributes their listings to the IDX database and is in turn, able to display listings from all other participating brokers on their web site. Click here to read the NAR policy on IDX.

Denver has practically all Brokers signed up which means that nearly 100% of properties are included in the IDX database. This eliminates the need for VOWs (Virtual Office Web sites) in the Denver area. For a complete discussion of VOWs see IDX Options and VOWs.

NAR made reciprocal Internet Data eXchange a mandatory policy effective Jan 1 2002.

Thoughout 2002, most MLS providers made IDX available to brokers and Associate Brokers and Agents whose Managing Broker has opted in to IDX.

Many of the regional MLS systems are also providing IDX solutions – check back regularly for updates in our News Section.

Internet Data Exchange, or IDX, delivers Brokers a significant advantage by keeping visitors on their web sites without having to go elsewhere to see all available properties within an area.

IDX will enable consumers looking at a Broker’s web site to access thousands of properties listed on Metrolist, instead of being limited to just that Broker’s listings, without leaving their web site.

Transforms Web Sites into Service sites for Buyers

Imaginative IDX solutions provided by vendors allow websites to have an entirely new proposition to buyers. A web site need no longer be passive or advertising oriented. With a database of listings to work with, interactive applications can be created that create high value services to buyers and capture them as sales leads.

Such solutions have the advantage of maintaining first contact with consumers.

See our sponsors for examples of these typs of solutions.

IDX is a technology that levels the marketing playing field.

Small Brokers and Associate Brokers, can now display as much inventory as large corporate Brokers. Now all Associate Brokers, no matter how small or big their business operation, can look like a substantial real estate business.

Historically, web sites have been run by Managing Brokers and they contained only their own listings. Other Broker’s listings were never really included as it was considered a competitive issue. However, the web has a way of leveling the playing field. Consumers who use the web to search for homes use sites where they get the most information. Realizing this, Brokers have continued to look for more content – specifically listings – to make their web site strategies more effective. This has led to cooperation amongst Brokers and ultimately the creation of IDX.

Wider Exposure for Sellers

For Sellers, IDX can be provide significantly improved effectiveness when marketing their listings. IDX allows you to advertise your listings on all sites using IDX.

IDX will give more exposure for your listings. More exposure usually means more and faster sales.

Summary of Benefits

Lead Generation

While the service itself is valuable to the consumer, IDX can be implemented in ways that generate leads for the Broker.

Maintain Contact

Brokers can invest in marketing their personal web sites knowing that they can maintain the first contact with the consumer – they won’t need to go to another site for property listings.

“Stickiness”

The IDX search engine maintains the Broker’s site navigation so the consumer never looses the ability to navigate to another area of their web site and should find all their information needs met in the single site.

Branding

The framing of IDX ensures all pages are still branded keeping the Broker’s identity and message in front of the consumer at all times.

Service

With IDX presenting all available properties, this high value content will attract consumers to go the Broker’s private web site.

Retention

As all properties are available. This, combined with highly targeted content on your web site, makes it the obvious, quick and convenient place for the consumer to come back to in the future.

Better educated

Consumers are now empowered by the Internet to find information never before made available. Now, when they make contact with Brokers they come more prepared, better educated about the market with more realistic expectations which makes the home buying process more efficient.

Local service

The consumer may feel more comfortable using a property search tool that is offered by a local service provider vs. using a national portal such as www.Realtor.com.

There are typically three ways to access IDX data for presentation through a private web site:

1. Vendor Template Solutions

The Vendor downloads IDX data from the MLS provider to their servers everyday, and then re-presents it to the Broker’s web site via the use of Vendor supplied Template Solution approved by the MLS. These are often delivered as external application web sites that the Broker’s web site has links to. It is also possible to get framed “plug-in” solutions that fit directly into a Realtor’s web site, as well as fully custom built applications.

In this instance, the IDX database is downloaded and held by the Vendor who provides Brokers with customized applications to access, present and manipulate listings.

This allows vendors to provide creative solutions for Associate Brokers that not only allow customized presentation of listing data, but enable the inclusion of marketing utilities and services to generate sales leads.

Examples of this could include the capability to store a visitors search criteria and offer them daily automated searches, or the ability to embed functions such as an instant mortgage calculator next to each property giving an instant repayment calculation based on the value of the specific property.

Vendor template Solutions give Associate Brokers the ability to leverage the creativity of vendors providing IDX listing data, in their quest for sales leads and improved customer service.

See our sponsors for examples of these types of solutions.

2. MLS Standard IDX solution

IDX data can be accessed using the approved MLS provider solution. This presents a live feed of IDX data from the Metrolist servers, usually into a frame on the Broker’s private web site.

On screen, the data is contained within a frame which maintains the Broker’s own branding, navigation and messages.

After a license agreement is signed with Metrolist, Brokers can frame the local data within their own web sites.

Framing is a good way to present IDX data as there is little performance and effort overhead. The delivery and presentation of large volumes of data to the browser window is handled efficiently by the MLS provider’s servers – not at the Broker’s web site. Consequently, there is no overhead required to download data and no need for additional technical services or technology to create database software to collect, sort and format listings data.

Whilst standard Framed solutions do allow the presentation of IDX listings, they so not provide additional personalized services to consumers. If you are looking to deploy IDX solutions as a mechanism for generating sales leads, you may wish to review a Vendor Template Solution (see above).

3. Download Data

Data can often be downloaded directly to a Managing Broker’s own server where it can be manipulated and re-presented. The Broker is able to build their own solutions and present data as they wish within the IDX rules.

In a normal office environment, if a consumer signs an agreement with the Broker and becomes a “client”, then that Broker may share MLS data with the client.

This principle is the driver behind the concepts of VOWs.

There are many formal definitions of a VOW, buts here’s how we like to define them:

A Virtual Office Web site is presentation of a Broker’s business on the Internet. Its not about advertising or marketing – its is an on-line representation of the Broker.

Just as in real office, if a consumer signs an agreement with the Broker, the Broker can then provide access to MLS data through their web site.

The critical point here is that in order to view the MLS data a consumer must be a “client”. This mirrors the same policies as exist in a physical office.

The Difference Between VOW and IDX

With a VOW, a consumer has to essentially sign up and become a “client” in order to view listings data.

With IDX there are no mandatory barriers.

IDX is an agreement between Brokers.

If you are in a state where you are a Broker Associate you can only take advantage of IDX if your Managing Broker has opted in to the IDX agreement. If they have not, then you will not be able to utilize IDX.

Whilst Brokers have always had the right to allow other brokers to advertise their listings on the internet, the new NAR policy ensures more consistent and widespread access to this Internet marketing option.

Many local IDX rules say that the local MLS must offer participating Managing Brokers the ability to download MLS data and use it to create their own customized solution. Associate Brokers may also utilize IDX data in their private web sites, but only through templated solutions purchased from authorized vendors.

Participation in IDX is purely voluntary for Brokers and the IDX policy is carried out in accordance with the local rules of your MLS.

Use

To subscribe to IDX services from your MLS, Brokers, Associate Brokers and Technical Partners must be aware of the rules governing IDX. These rules are available from your MLS provider.