Money questions surface on MLS proposal

Re: 'CALMLS plans to acquire one or more MLSs' (Jan. 16)

Dear Editor:

A quote: "Ed Krafchow, CEO for Prudential California/Nevada/Texas Realty, commented Friday, 'I do think that CAR is smart enough to recognize they lack institutional memory of the MLS business and need to seek support. How they do that is anybody's best guess.' " This is a very keen observation that I concur with.

Quote: "Eliminating conflicting database standards utilizing a single backend will significantly reduce operating costs for CALMLS and participating brokers (and) agents." This has already been an ongoing program. It's called RETS (Real Estate Transaction Standard).

This reeks of big government swallow-you-up mentality.

From the article: "CALMLS is projected to generate $13.8 million in revenue in 2009, growing to $24 million in 2011, according to the report. The entity is expected to operate at a $720,000 loss this year, not including the $500,000 costs related to its launch, and is expected to have net revenue of $1.53 million in 2011."

Where is all of the money going to come from? How is CALMLS going to pay back the loan? I don't like the smell of this at all.

Rick Schreiber
Rancho Santa Margarita Realty Inc.
Rancho Santa Margarita, Calif.

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