opening up of MLS

[eyesthebye]

Pointed out by ex-banker over at RC's blog:

http://tinyurl.com/yzo3w3j

Have at 'er.

everyone could see it coming. Realtors are largely uneducated, have very little education for their "profession", and probably make more $/hr than even the highest priced lawyers. If they were charging a reasonable commission this never would have happened.

[robert james]

Won`t this seriously affect the value of any Mom and Pop reality office ?? I know in my town there is a real estate business for sale.. I would think that the will really affect value of the business.. Any thoughts on this?

[pianoexcellence]

Won`t this seriously affect the value of any Mom and Pop reality office ?? I know in my town there is a real estate business for sale.. I would think that the will really affect value of the business.. Any thoughts on this?

I think it will not affect realtors too dramatically at first. Many buyers and sellers are very comfortable with the current system, and will continue to use it as is. Over time, forward thinking realtors will probably find ways to use the new system to make some serious money.

People in general will always need estate professionals in some form. You can't trash on the profession...you can really only complain about the system. I argue that the only thing that will change is the way that the service is delivered. I also think that people will demand more expertise from their realtors, and that the profession will gain increasing respect as the true standouts rise to the top even more than now.

-P-

[Lost Soul]

People in general will always need estate professionals in some form.
-P-

Yes, who else will we rely on as a fount of mis-information? Anecdote: We were at an open house (condo) the other day -- only ones there -- the place has been on the market for quite some time. I looked down at the baseboard heaters and asked what type of heating; realtor looks down and said "electric". Hmmm, didn't look like it to me -- look at the listing sheet, sure enough, it's hot water. I mean come on, she's had this listing for a couple of months now and she doesn't even know this???

[pianoexcellence]

Yes, who else will we rely on as a fount of mis-information? Anecdote: We were at an open house (condo) the other day -- only ones there -- the place has been on the market for quite some time. I looked down at the baseboard heaters and asked what type of heating; realtor looks down and said "electric". Hmmm, didn't look like it to me -- look at the listing sheet, sure enough, it's hot water. I mean come on, she's had this listing for a couple of months now and she doesn't even know this???

Here's another anecdote for you. I was at an open house last week. The realtor said:

"If you are thinking about making an offer on one of these homes, wait a while. Nothing is selling and I keep telling the developer to drop the prices. if nobody buys in the next few weeks, I think I will be able to convince the developer to drop the prices dramatically!!"

I give him an "A" for full disclosure and an "F" for fiduciary duty. (unless this was a pre-planned spiel)

-p-

[vreaa]

piano, gotcha.

[v6g]

It's about time the real estate cartels were cracked.

Selling your house yourself is the easiest money you'll every make ... where else can you work for $1000 an hour tax free?

[silverman]

I think this is HUGE news. It will have a mild lowering effect on price, and should add liquidity to the market.

I've been hoping for this for so long now. Real estate agents have good skills, I have always thought that those skills might be better served in the "consultant" capacity rather than the "doorkeeper" capacity. let's see if any chance actually occurs to MLS.

I agree 100%. The competition bureau has been "watching" the real estate industry for some time now. If substantial changes are to be made, such as the "mere posting" listing... basically a FSBO on MLS with some guidance from a realtor paid according to the services he/she provides... we will find out soon.

A side affect will be actually the strengthening and widening of the MLS... and the demise of the FSBO companies... why would anyone pay $500 to place his home on a FSBO site when he can place it on MLS for the same money.

[grantness]

It's nice to know that the competition bureau is happy to confiscate the tools developed by private organizations to improve their own business. What better way to stimulate innovation than to punish it??

Next up: coca cola forced to reveal its secret recipe so u-brew customers can make their own coke in the basement.

[pianoexcellence]

It's nice to know that the competition bureau is happy to confiscate the tools developed by private organizations to improve their own business. What better way to stimulate innovation than to punish it??

Next up: coca cola forced to reveal its secret recipe so u-brew customers can make their own coke in the basement.

Not exactly.

One of the problems with the current system is that realtors cannot compete with each other meaningfully. Sure, they can compete with little slogans and promises of putting people first, but there is no flexibility allowed in the system. If a realtor wants to put a listing on MLS for $500 and walk away, he is prohibited from doing so because he would have to do all the work under the current system...and 500 is not enough to handle all the details of the sale.

but this doesent mean that I can just go post listings on MLS if I am not a realtor. IMO, the new rules if implemented will give some realtors a huge boost in income. Heck...I might drop out of the CASB stuff and become a realtor for the express purpose of listing FSBO's on MLS. Well...probably not.

[pianoexcellence]

I think this is HUGE news. It will have a mild lowering effect on price, and should add liquidity to the market.

I've been hoping for this for so long now. Real estate agents have good skills, I have always thought that those skills might be better served in the "consultant" capacity rather than the "doorkeeper" capacity. let's see if any chance actually occurs to MLS.

I agree 100%. The competition bureau has been "watching" the real estate industry for some time now. If substantial changes are to be made, such as the "mere posting" listing... basically a FSBO on MLS with some guidance from a realtor paid according to the services he/she provides... we will find out soon.

A side affect will be actually the strengthening and widening of the MLS... and the demise of the FSBO companies... why would anyone pay $500 to place his home on a FSBO site when he can place it on MLS for the same money.

Hey Silv,

Were you getting grief for your business model from the CREA? I've always thought that you had a pretty good system going on.

[pianoexcellence]

Here's a different article saying the same thing

By The Canadian Press

TORONTO - The Competition Bureau is pushing for changes in how much Canadians pay in realty commissions after an investigation found the country's largest realtor association was operating with anti-competitive rules.

The decision could open the market to cheaper listing alternatives or result in lower listing charges on the Multiple Listing Service, or MLS.

An internal memo from Ottawa-based Canadian Real Estate Association to its members said that the federal bureau has told them its rules block competition within the industry, and that it has recommended changes.

"The bureau is concerned that CREA's rules have restricted consumer choice and limited the scope of alternative business models," according to a memo signed by CREA president Dale Ripplinger.

"The bureau's position is that if CREA does not remove these restrictions, the Commissioner of Competition will initiate an application before the Competition Tribunal."

The investigation follows complaints over how much consumers were paying in commissions to sell their homes, and the services they were charged to use.

"We have received complaints from realtors and they're arguing that the CREA restrictions require consumers to pay for services they don't want or need," said Greg Scott, a spokesman for the Competition Bureau.

The letter was sent out after CREA and the bureau met on Oct. 23 to discuss an investigation that has been underway since 2007.

A spokeswoman for CREA declined to comment on the investigation while the association is "negotiating" with the bureau on the situation.

CREA represents most of the country's real estate brokers and salespeople, and has more than 96,000 members across the country. Its MLS and Realtor.ca websites are home to most real estate transactions in Canada.

[eyesthebye]

It's nice to know that the competition bureau is happy to confiscate the tools developed by private organizations to improve their own business. What better way to stimulate innovation than to punish it??

Next up: coca cola forced to reveal its secret recipe so u-brew customers can make their own coke in the basement.

I agree grantness - it's their site and system so let them use it.

I have a model that I'm working on that will pit realtor against realtor competing for your service. As it stands now, you call a realtor - or make a selection where the commission is already established. How about having realtors bid on your product? Add a little healthy competition for your business? I guarantee that the commissions rates will fall and mls service can remain the way it is. As it stands now, the whole system works backwards

[eyesthebye]

Here's a different article saying the same thing

By The Canadian Press

TORONTO - The Competition Bureau is pushing for changes in how much Canadians pay in realty commissions after an investigation found the country's largest realtor association was operating with anti-competitive rules.

The decision could open the market to cheaper listing alternatives or result in lower listing charges on the Multiple Listing Service, or MLS.

An internal memo from Ottawa-based Canadian Real Estate Association to its members said that the federal bureau has told them its rules block competition within the industry, and that it has recommended changes.

"The bureau is concerned that CREA's rules have restricted consumer choice and limited the scope of alternative business models," according to a memo signed by CREA president Dale Ripplinger.

"The bureau's position is that if CREA does not remove these restrictions, the Commissioner of Competition will initiate an application before the Competition Tribunal."

The investigation follows complaints over how much consumers were paying in commissions to sell their homes, and the services they were charged to use.

"We have received complaints from realtors and they're arguing that the CREA restrictions require consumers to pay for services they don't want or need," said Greg Scott, a spokesman for the Competition Bureau.

The letter was sent out after CREA and the bureau met on Oct. 23 to discuss an investigation that has been underway since 2007.

A spokeswoman for CREA declined to comment on the investigation while the association is "negotiating" with the bureau on the situation.

CREA represents most of the country's real estate brokers and salespeople, and has more than 96,000 members across the country. Its MLS and Realtor.ca websites are home to most real estate transactions in Canada.

exactly piano...the CREA anwser to the ruling is to open up mls to listings. Nobody asked them to give up the monopoly - but they must believe it's a change they can somehow control since they control mls

[silverman]

Hey Silv,
Were you getting grief for your business model from the CREA? I've always thought that you had a pretty good system going on.

No grief at all. My complain is that they don't allow any seller contact info (tel. no. & email address would be nice) in the comments section... and that creates more unnecessary work for me.

After all this media attention, I will be submitting an official request to the RE board to allow sellers' tel. no. in the comments appearing in realtor.ca and/or at the bottom of the main photo. Stay tuned.