Nevertheless, the point still remains that the same economies of scale which would enable better service to the public could result in better tools for the industry, too. The two parts of such a hypothetical platform are too closely linked to ignore the possibility.

The good news is that following the housing bust a few hard hit states (CA, AZ) are moving toward a statewide MLS. That consolidation is a modest step in the right direction.

The bad news is that some of the “old guard” may understand what must be done yet still prefer the status quo out of self interest. After all, 800+ MLSs means a lot more salaried industry executives than one (or a few!) competing national ones.

I agree $4 million is likely plenty for a first national MLS. However, let’s not forget that the total dues practicing agents pay each year far exceeds that; annually it rivals the entire $87 million that venture capitalists poured into Zillow from inception to IPO. If the industry had moved to put each MLS on line for the consumer years ago, Zillow might not even exist in its current form today!

With deep expertise and deeper pockets industry insiders can still do some amazing things with technology. However, absent decisive industry action, Zillow and others will grow ever more dominant.

Meanwhile, individual agents will vote with their wallets – as they should.