New rules for Realtors and our use of the MLS system?
su...@hate2010.games
More than once we've had to sell our home and move and more than once we were given this
little lecture by real estate salespersons wanting to list our house:
'If you don't use the full MLS system, you won't be able to list your house so that
everyone in Canada can see your listing'.
We wanted to save money, of course, and wanted jut the Exclusive listing - and the lower
commission rate. 'Other realtors won't show your home for the lower commission rate' was
their response.
I don't know how others feel about paying 7% on the first $100,000 sale price PLUS
anywhere from 2% to 4% on the remainder of the sale price. But I've always felt it was an
exorbitant amount of money to pay for realtor services - especially in a fast market where
the home sells within a few days or a week and the realtor put out very little in time or
fees to market the home. Looks like the doors to MLS may be swinging wide open for all of
us. And not a moment too soon, considering we are about to pay HST on top of realtor fees
in B.C. and Ontario.
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Globe and Mail Update Published on Monday, Feb. 08, 2010
Competition Bureau seeks to smash 'anti-competitive' CREA rules on MLS
Federal agency says 'downward pressure' on fees would result if Competition Tribunal
strikes down restrictions
The federal Competition Bureau says it will challenge the restrictive rules that govern
the multiple listing service (MLS) system used by most Canadian home sellers to list their
properties.
The MLS system, run by the Canadian Real Estate Association, includes information that is
only available to CREA members, and its structure impairs consumer choice, the bureau said
Monday.
It wants consumers to be able to pay a lower fee to list their homes on MLS without being
forced to buy a whole range of other services. This would essentially allow homeowners to
use MLS for a small fee, then negotiate the sale of their homes without the help of an
agent.
If these changes come to fruition, the cost of buying and selling residential real estate
could drop sharply.
The bureau has filed an application to the Competition Tribunal, a quasi-judicial body
that will decide if its complaint is justified.
"Selling a home is one of the largest financial transactions that most Canadians make in
their lifetime," Melanie Aitken, the commissioner of the Competition Bureau said in a
statement. "Consumers should be able to choose which services they want to buy in order to
facilitate that transaction, including lower-cost options."
The bureau said it had tried to negotiate a compromise with CREA, but the association was
"unwilling to agree to changes that would have opened up competition."
CREA's rules limit consumers' ability to choose the real estate services they want, the
bureau said, and force them to pay for services they don't need. The rules also stop
agents from offering clients innovative services and pricing options, it said.
The real estate industry has argued that consumers need real estate agents to help them
through a confusing process, and that the skills of agents are necessary to maintain the
integrity of computerized listings.
The MLS was developed in the 1960s, long before computer networks made information sharing
simple and efficient. It allows agents from different real estate agencies to co-operate
on deals, and ensures that each property is well-exposed to potential buyers.
Some of the information on MLS -- such as what a property sold for in the past, and recent
sale prices in the neighbourhood -- is only available to agents.
su...@hate2010.games
su...@hate2010.games
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