Is Data Scraping Taking Money from Brokers’ Pockets? Realtor.com’s Curt Beardsley Says, ‘Yes’

Data scraping and misuse of listing data that belongs to brokers are growing concerns. Many scrapers (or others who receive the data legitimately but use it in ways that violates its licenses) are actively reselling listing data for various uses not intended by brokers, such as statistical or financial reporting.

I recently had the opportunity to sit down with Curt Beardsley, vice president of consumer and industry development at Move, Inc., a leader in online real estate and operator of realtor.com®. Beardsley shared his thoughts on the proliferation of data scraping, the grey market for data, and how brokers can protect their data from unintended uses.

Reva Nelson: How are scrapers using the listing data once they scrape it?

Curt Beardsley: The listing data's first and foremost value is as an advertisement to get the property sold, and to promote the agent and broker. That value is clear and fairly simple. But the second value is not as clearly defined, which is all the ancillary ways this data can be used, such as for statistical reporting, valuation, marketing of relevant services, targeted mailing lists – that is beyond the original purpose of the listing, which is to present information to consumers and other agents to facilitate the sale of the property. Banks and other entities are eager to get hold of that data because it lets them know who will be up for a mortgage, who will be moving, who will be potentially needing services, etc. People who are selling homes offer a prime marketing opportunity since they may need movers, packing materials, storage, etc. There is a vast grey market for this data.

RN: Given that the users of this data aren't even in the real estate industry, why should brokers be concerned about this issue?

CB: If your license agreements aren't clear, that whole other world gets fed and is living on this data. It is taking money out of the broker's pocket. The leaks are taking money away in two different ways. First, if this marketplace could be created, it's a revenue stream. Brokers could be making money off of this. Second, they lose control of the leaked data. Brokers are losing control of their brand, and the way that listing is being monetized and displayed. Consumers are agitated when they keep connecting to their agents with homes that are not really for sale. A lot of it is wrong. Agents are paying for leads on homes that went off the market months ago. As a broker, that's a brand problem.