What Is IDX (Internet Data Exchange)
The IDX (Internet Data Exchange) is simply put, Broker Reciprocity, but what does that really mean?
If you have ever gone to a Broker's Company website and done a search, you may notice that website seems to have all of the listings for sale (not just their own listings). You may also notice that, in very small print at the bottom of the listing, "Listing Courtesy of..." When you see that you know you are searching "almost all" of the MLS on that broker's website. This is all possible because of Internet Data Exchange, which is really called broker reciprocity. I say, "almost all" because not all brokers opt into the IDX.
The IDX allows brokers to opt their listings into a pool of listings with other broker's listings and that is how brokers can show more than their own listings on their website. This happens through a cooperative agreement that only exists inside the MLS. A Multiple Listing Service exists for the purposes of cooperation and compensation between brokers. This mean that a listing agent that takes a listing is willing to share the total commission with another broker who brings a ready, willing and able buyer. If the members of a MLS can assist a listing broker by bringing a buyer, then they can also help sell it by showing it for sale on their website. There are rules that exist in the MLS and IDX which include crediting the listing broker on each listings, and showing the source of the listings is through the MLS that is providing the listing feed.
As a broker, the only way to get these listings on your website is to first join a multiple listing service and then opt into the IDX, meaning you are willing to share your listings with the others and then you are entitled to get the feed back for your own website. In My State MLS, the IDX requires a separate opt in, by broker and by listing. If a property owner does not want their listing included in the IDX, they can OPT out. A broker can OPT out his listings when it is explicitly requested by the property owner, but broker be ware, if a broker seems to OPT out all of their listings, it can be seen as non-compliance of the IDX, and the feed to their website may be suspended. If you have listings, you have to give listings to get listings.
Why would a listing agent Opt their listings into the IDX? The simple answer is, to get more exposure for their listing, so it sells for the highest and best price. Opting listings into an IDX, can get a listing thousands more views as the listing will actually be on thousands of sites.
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