IRES Declines REcolorado Offer

IRES Declines REcolorado Offer Rejecting Opportunity to Move the Industry Forward

In an effort to better serve the brokers, agents, and appraisers who work in the Denver and northern Colorado areas, REcolorado made an offer late last year to purchase IRES. We regret to inform you that yesterday, REcolorado received a letter notifying us that IRES has declined our offer.

In their letter, IRES confirmed the proliferation of MLS organizations in Colorado is not the best way to serve real estate professionals throughout the state and proposed conducting yet another round of statewide conversations about MLS consolidation.

Statewide MLS conversations have been taking place for the last 15 years. REcolorado has been an active participant. These conversations have produced thoughtful analysis and have been effective in identifying organizations that are open to the possibility of partnerships; however, they have also delayed our progress, allowing national portals to penetrate the market and agents provide the consumer.

Colorado real estate professionals are ready for REAL change NOW. We have heard this from you—brokers, agents, and appraisers from the Wyoming border and throughout the Denver front range—loud and clear.

As evidenced by our offer to purchase IRES and our recent partnership with REALTORS of Central Colorado (ROCC) we do not intend to allow fear of change and politics to continue to slow progress that will bring great benefits to you.

REcolorado is not trying to form a statewide MLS. Contrary to rumors that may be circulating, REcolorado’s offer to purchase IRES was not about forming a statewide MLS or taking over all MLS services for the state. It was about how to best serve brokers, agents, and appraisers in the Denver area and northern Colorado, so they can continue to provide value to their clients.

We are not interested in forcing consolidation where benefits will not be realized. Instead, we believe the marketplace will create logical partnerships based on solid business practices.

The market is driving the need for consolidation in Denver and northern Colorado. The growth we have experienced in Denver and northern Colorado has caused overlapping market disorder. As a result, real estate professionals are forced to use two different MLS systems, which is cumbersome and costly, at best. These market conditions have created the need for consolidation, which is why REcolorado made its offer to purchase IRES. It is also why we will continue to urge IRES to reconsider our offer, which included:

•A generous multi-million-dollar payment, which when distributed to its REALTOR® Association shareholders, could be used to further strengthen the value provided by local REALTOR Associations and reinforce the REALTOR brand.

•Representation on the REcolorado Board of Directors and policy committees, including the Rules and Regulations committee.

•A commitment to combining the best technology resources and maintaining a staff presence to serve subscribers locally.

REcolorado’s vision includes developing partnerships where partnerships make sense. While consolidation is the right approach for Denver and northern Colorado, it may not make sense in every part of the state. This is why we have a wholesale partnership model that is flexible and can be customized for individual REALTOR Associations and local MLSs.

Through this partnership model we can bring the best MLS services to real estate professionals, while reducing costs. Furthermore, our wholesale partnership model strengthens local MLSs, by providing them with stronger products and services, better customer care, and cost efficiency, all while keeping real estate local.

We are currently implementing our partnership model with REALTORS® of Central Colorado and other interested MLSs and REALTOR Associations.

The time for action is NOW! While we’re glad conversations are continuing, we strongly believe we can no longer wait to take action that will lead to real change.

Together our future is bright!

The REcolorado Team