Interviews
Chad Jacobson: Maximizing Member Value
September 25, 2024
By Arianna Marino
PrimeMLS stands out as a leading force in the real estate industry, serving over 12,000 agents and brokers across six New England states - New Hampshire, Vermont, Maine, Massachusetts, Rhode Island, and Connecticut - as well as parts of New York. Under the leadership of CEO Chad Jacobson, who assumed the role in January 2023, PrimeMLS has continued to excel. Jacobson brings a wealth of experience to the role, with a distinguished background both as a REALTOR® and in telecommunications, including international assignments and program management. His commitment to enhancing PrimeMLS's financial health, strategic direction, and growth is evident in his proactive management style and deep engagement with national policy trends affecting the real estate industry.
In our following conversation with Chad Jacobson, he sheds light on how PrimeMLS is tackling the challenges presented by the NAR Settlement Agreement, which limits MLSs' ability to display cooperating compensation. Jacobson underscores the critical importance of reinforcing the value of their data and driving continuous innovation to meet the evolving needs of their members. He also emphasizes his approach to empowering his team through annual training opportunities, fostering skills in areas such as Excel, writing, and team collaboration. This commitment to professional development not only enhances individual performance but also contributes to the overall effectiveness of the team. Join us as we gain insight into how Jacobson is shaping the future of PrimeMLS and leading with a forward-thinking mindset.
Industry Origins
What inspired you to pursue a career in MLS-PropTech?
I have had a fascination with technology since I was in high school, where we had a mainframe computer time share connection with Cornell University. In college, Computer Science 101 was a required class for my degree, and while I enjoyed the programming challenges, I despised carrying around the decks of IBM punch cards which held my programs. At my first employer I convinced the engineering department to give me access to their Radio Shack TRS-80 Model III for a few hours every week, and I replaced, without permission from my manager, the paper-based budgeting system for his project with a spreadsheet-based system using VisiCalc. That is how a “can I apply new technology to improve efficiency at work” attitude became a part of my work DNA, and after spending time on the outside of the MLS looking in, I was very excited when the opportunity arose to apply my experience on the inside. Oh, and my manager was actually thrilled with my don’t ask permission, as for forgiveness approach on this one.
How did you first get involved with our industry?
When I moved to Vermont, I decided to volunteer at the local MLS (VREIN). Kathy Sweeten, now the CEO of the Vermont Association of REALTORS®, asked me to lead the Enhancements Committee which I did for about 5 years. When VREIN was purchased by what is now PrimeMLS I served on the board of directors for my local REALTOR® board, and that was my first opportunity to see inside a well-managed, large MLS. After almost 5 years on the board, I was planning on stepping away from my volunteer role, and that’s when I was able to join PrimeMLS as the Director of Operations.
What do you consider your biggest professional achievement?
When I joined my sister’s team in Burlington, Vermont, a true family affair, we turned her into the listing agent and rainmaker while her son and I worked with all the buyers. I introduced the technology and systems that led to our rank improving from 21st to 5th (54% revenue growth in just 2 years) in the greater Burlington market. By diligently tracking the sources of our leads and our closed transactions, we were able to optimize our marketing and advertising spend through the most profitable channels.
I also think of a second, non-real estate achievement. It was a long time ago, but when I returned to the United States after almost 4 years working overseas, I became the supervisor of the administrators supporting all international contracts. The most important responsibility of an administrator at that time was the management of the budget, but unfortunately there were no standards. I developed a macro-driven budgeting system using Lotus Symphony which became the standard budgeting tool at my 1200-employee division of a Fortune 200 corporation. I still have the code, but sadly it does not run on modern PCs and operating systems. Perhaps when I eventually retire I’ll find an online emulator for Windows 1.03 and Symphony so I can see that code run again!
How have these previous experiences shaped your approach today?
Right out of the gate at my first employer I was never afraid to take a risk and try a new way of working. I am still applying that philosophy here at PrimeMLS because I firmly believe if you are not innovating then your competition will make you functionally obsolete over a reasonably short time frame, and I am driven to ensure that never happens under my watch.
MLS Challenges & Trends
What do you think are the biggest challenges facing the MLS and industry today?
With the NAR Settlement Agreement stripping away the MLS’ ability to display cooperating compensation, we need to both reinforce the value of the data in the compilation and identify and implement new, creative services that support the needs of our members. PrimeMLS is constantly looking at how we can push the envelope and not stagnate.
What is your vision for the future of MLS?
For the sake of all real estate practitioners, I hope the MLS consolidation trend continues. With higher membership counts services become more affordable on a per-user basis enabling a reduced fee structure or the ability to offer a much wider range of product and service offerings. We also see the need to offer multiple MLS platforms to appeal to practitioners and associations outside of our vast, multi-state service area. If we offer the platform they are already accustomed to as well as competitive pricing, there is effectively no technical or financial friction to joining PrimeMLS.
What's your prediction for the next big disruption in MLS-PropTech?
AI is the obvious answer and it’s just getting started. Technology companies must identify more ways to apply “friction free AI” features to the tools agents use every day. It has always been the case that a vendor that does it faster or better than competition captures market share, and AI is the latest technology no vendor can afford to ignore.
In your opinion, what is the most underrated tool in real estate right now?
A simple, quick CMA that generates a value for a target property based upon the most critical objective property data elements of a short list of comparables. For higher end properties a deep, comprehensive CMA tool is probably a necessity, but the vast majority of valuations center around beds, baths (full, three-quarter and half), finished square footage above and below grade and garage slots. Allow the user to customize the per “unit” adjustment factors for each of those elements to reflect the realities of their local market and make it a 5-to-10-minute process and you have a winner on your hands. Unfortunately, most of the popular CMA tools out there are just calculating the average or median value of the comparables.
PrimeMLS Leadership
How do you approach decision-making and strategy as CEO?
We look to our Board of Directors (BOD) to help us establish the strategic imperatives for our company. Then we look to our Executive Committee (EC) for the tactical oversight that validates we are properly executing against those imperatives. My analogy is the BOD tells us which road(s) to follow and the EC helps us to make sure we do not end up in a ditch. With both leadership bodies adhering to that strategic vs. tactical decision-making construct, the company operates very effectively and efficiently.
How do you foster innovation and creativity within your team?
Anytime I have an opportunity I try to remind the entire staff that there is probably a better solution to a daily work issue rattling around in their heads and they cannot be afraid to bring it to the table. Then we can look at it as a team to objectively determine if there is a positive ROI to implementing a change and if there is an enhanced experience for our members. That is how you incrementally improve an organization – capitalize on the knowledge of the entire organization.
What is key to maintaining a productive and happy team?
We give everyone the freedom to identify some kind of training opportunity every year. Improve your Excel skills, enhance your writing or call communications, boost your team skills… If you get to choose you are hopefully motivated to actively engage in that learning opportunity and carry what you’ve learned back into your daily work life.
Can you discuss a recent project you're particularly proud of?
Our leadership recently tasked me and my management team to analyze PrimeMLS and the MLS industry from the perspective of 4 strategic imperatives. In less than 6 months we generated an almost 100-page strategic plan that led to the approval of a long list of operational and governance changes. The most significant change will be an MLS front-end of choice for our members, which we are currently working to implement in a way not previously attempted.
Executive Wisdom
What is your leadership style, and how has it evolved?
I am a firm believer in setting my staff free to identify the solutions to the challenges they experience every day in their work lives. They are in the trenches using our internal systems and member tools, so they are eminently more capable than I am at developing standard operating procedures for their departments and automating as many processes as possible that have been handled manually in the past. My role is to show them the roadmap our leadership wants us to follow and it’s up to them to drive our “bus” faster and/or more efficiently down that road.
How do you stay informed and ahead in this rapidly evolving sector?
Every day I do my best to consume the latest industry news from approximately 8 - 10 of the leading electronic publishers. And while I key in on MLS-specific articles I also read about technology in general as well as the pain points facing both brokerages and individual practitioners. For an MLS to better serve the needs of our members we need to stay current with their daily challenges in an effort to identify potential technology we can leverage into solutions to the hurdles they face every day.
How do you balance work and personal life in such a demanding industry?
I have the absolute best partner anyone could hope for. She knows I need to work a lot more than 8 - 5 / M - F, but I also make sure AT LEAST one day on the weekends is totally committed to whatever she wants to do, and that keeps me off the computer AND helps me to ensure the happy wife/happy life paradigm. She also travels to most of my industry events, and we try to build in some personal sightseeing time at the front or back of those trips.
Personal Insights
Do you wish to share anything about your family?
I have three sons from my first marriage, and I am very pleased that when they each were on the verge of attending college, I strongly recommended that they should pursue some kind of a profession, as that would provide them with a network to fall back on when they eventually pursued employment opportunities and options. I guess they took that advice to heart as one secured a doctorate in physical therapy, another has an MIS degree and the third is a mechanical engineer. Very proud father indeed.
What is your favorite book?
The book is Shibumi by Trevanian. It deals with a retired master assassin who becomes the target of the “Mother Company.” When the protagonist’s opponent at the Mother Company worked on any issue, his assistant would hand him a folder containing all relevant information which he would place on his totally unadorned, large desk (no light, no phone, no stapler, …), and after reviewing the materials he would dictate his decisions to his assistant and hand the folder back. The process was then repeated of course throughout the workday. I keep a very neat workspace and I try to not get distracted when working on a problem, but I never convinced any of my employers to hire a personal assistant for me.
Where is your favorite vacation spot?
I am going to cheat and mention two. The first is Shadow Lake in Glover, Vermont. It’s a very small and peaceful lake - think kayaks and canoes as jet skis are prohibited. And with no cell or cable service available you have no choice but to disconnect completely from the fast-paced daily life and detox from work. The second is half-way around the world in Hua Hin, Thailand. The ocean beaches, fantastic food and friendly people make it another compelling destination for me. And since my wife is Thai I can delegate almost everything to her when we are there.
Can you share a surprising fact about yourself that not many people know?
I was an ice hockey referee for about 15 years. I played the game in my youth, watched my kids play the game and coached two of them. Then I needed a late life hobby, so I refereed youth, high school and junior hockey in Vermont and New Hampshire. It was a very rewarding experience keeping pace for the entire game. And you had to know the rules inside out, a skill I hope I have mirrored reasonably well as an MLS executive!