Comments on: DOJ vs. NAR: Point2 Agent Weighs In

By: samq

samq — Sun, 09 Aug 2009 11:34:50 +0000

Nikki you hit my soap box on the head. What we need is more competition in the form of alternatives to NAR and MLSs. As a real estate agent I was told by a Broker who was a Realtor that I could not take listings on behalf of my broker (we were both non-Realtors for the sake of this argument) as this would be a violation of my fiduciary duty to the client in not marketing their property effectively. Really? Last time I checked I could list on Trulia, Postlets, Craigslist, and a host of other sites that get eyeballs. But the power of the local MLS and the ignorance of the general public is astounding. Combine these two factors and you have a very powerful monopoly. That broker had some valid points. People do not necessarily go to those sites that I mentioned, they start by searching major searchable home sites, like local Board of Realtor sites. The argument that an MLS is simply an innocent information exchange between brokers for commission rate is invalid. If this were true then stop publishing listings via IDX feeds on Realtor websites and stop making listings searchable on Realtor Board websites. Realtors and NAR can not have it both ways. If I am violating my fiduciary duty to my clients by not joining the Realtor organization then I'd say that's tantamount to extortion and way to much power for one organization to wield. I will be caving however because I want to practice residential real estate, but to join will cost me $597 in Realtor Membership fees, over $700 in MLS fees and Supra Key services. Total is just over $1400.00. Then I get to pay MLS and Realtor Membership fees ever Sept. and March.

I want the choice to join another group that has access to the same or similar information. I also do not see why I can not just be a real estate agent, but the reality is to practice residential real estate requires access to comparable data for comps to determine a potential list price, especially if you are in a non-disclosure state.

By: samq

samq — Sun, 09 Aug 2009 09:34:50 +0000

By: Anthony - Staten Island Real Estate Blog

Anthony - Staten Island Real Estate Blog — Mon, 09 Jun 2008 01:04:05 +0000

MLS was never really a marketing tool. It was really meant to be a tool allowing commission splits with other real estate companies/brokers. Yes, it has to a significant degree it has been more emphasized as a marketing tool, espeicially in the Internet arena. The issue is this, if there is no regulation on the specific responsibility of how real estate listings are advertised and presented to the general public there will be significant issues with the accuracy, timeliness, which adds to the confusion and frustration on the part of the consumer. Personally, that has been my largest issue with user provided content on many websites. Many clients have pulled up listings that were sold, and in some cases over 2 year ago. In my view DOJ is opening a pandora’s box, because mls listings require and mandate specific maintenance of listings. Something not required by many other websites. If their is no governance, there’s ambiguity, if there ambiguity there’s misinformation. Misinformation leads to distrust and ultimately bad business. not a big fan of DOJ’s take here.

By: Anonymous

Anonymous — Wed, 14 Nov 2007 11:01:41 +0000

“The National Association of Racketeering” NAOR

When a member Realtor does not pay the annual board of Realtors dues by a certain date, in turn the Mid-Florida Regional MLS privileges are shut down , even all well knowing that the MLS/ Supra fees are paid up until March 2008 ? Correct..

Do you not feel that by these actions that the general public and the listings that have been effected By these actions now creates a hardship to the home sellers listings on your Mid-Florida Regional MLS system and the Realtor/Client fiduciary to there client has been affected in a monetary manner.

This action also has a large effect to home sellers and potential home buyers through out you entire MLS coverage areas, from what I have been reading in the news that about 10% of the greater Orlando Realtors have not renewed there board membership, so having said that all of 10% have been shut down from using your Mid-Florida Regional MLS system.

Another effect of this shut down of MLS to it agents, you are taking away there right to work ! As the listing agent, and to allow the listing agent access add new clients listing into your system knowing that the MLS dues are paid up..

Do you offer a refund of the MLS members dues back to the Board of Realtor members that you have shut out of the Mid-Florida Regional MLS?

Please tell me how any of this benefits the consumer especially in todays market and my last question is this.

“Why is it, the Mid-Florida Regional MLS has shut our Non-Realtors/Real Estate Agents, from participating in the Mid-Florida Regional MLS” it would seem to me as a unfair trade practice.

http://www.usdoj.gov/atr/contact/newcase.htm

Included links

Http://www.mfrmls.com/

http://www.orlrealtor.com/Main/Main.asp

Wait until the news media picks up on that e mail they will have a field day with it

I must admit I love the title, and the letter make some very good valid points

By: Nikki

Nikki — Wed, 03 Oct 2007 19:12:12 +0000

I’m not even sure if anyone will read this as I’m posting months later.

However, the biger question here isn’t if the DOJ is right, but why is the NAR wrong? NAR has the monopoly on the MLS. They created it, yes. But over the years they have made it next to impossible for Real Estate Agents NOT to join their “voluntary” Association of Realtors.

When you are licensed in one State – Say Florida for example – you are legally able to sell Real Estate in the entire state. From the Panhandle to the Keys. However, as a Realtor, you are required to join the National Association of Realtors (NAR) the Florida Association of Realtors (FAR) and what ever Local board you happen to reside in to get the MLS. Not 1, but 3 boards!!!! If you want access to any other MLS in the State, you must join each and every Local Board for that area. Example. You live in Miami. You join the Greater Miami Dade and the Beaches board. Say you want to sell Real Estate in Broward (Ft. Lauderdale) Legally you can, but you can’t access their MLS unless your Broker belongs to that board, and you join as well.

The NAR has now made it mandatory that if you, the Broker are a NAR member, then all your agents must be too. Oh, they can be exempt,but the Broker has to pay a percentage to keep them exempt. And the bill comes right to the Broker. It’s up to the Broker to collect the dues and MLS fees and in turn collect them from their agents.

Voluntary Association? Not really. And if you ask the average Real Estate Agent why they join the Board – they’ll tell you, either cuz my broker said I had to, or becuase I need the MLS. And NAR knows this. $120.00 for the NAR for 2008, $110.00 for the FAR for 2008 and anywhere from $100.00-$500.00 for the local boards. Depending on if you pay monthly for your MLS or one time fee to the Board.

I’m thinking someone should be looking at the monopoly of the MLS from the poor Real Estate Agents perspective, not the consumer. Just my 2 cents.

By: scotty

scotty — Fri, 14 Sep 2007 20:59:10 +0000

I’m a member of the public and as all these posts indicate, don’t understand the MLS. If anyone can give me an explanation a 4-year old can understand, it would be great. I’ve read the DOJ complaint and some of the realtor perspective. Here’s a question; As a homeowner I work with a realtor to create a listing agreement. He contracts with me for a commission if the house sells. First, isn’t the data populating the listing still my intellectual property? Second, doesn’t the agent have a fiduciary duty to create the widest possible net of buyers for my home, regardless of the agreement (exclusive agency, limited service etc.) we sign? If yes, and MLS is the central medium of communication for 95% of all brokers, doesn’t MLS have an obligation to distribute my listing information throughout cyberspace? If not, how can I be sure the broker is acting in my best interests?

By: Gaye Fox

Gaye Fox — Wed, 15 Aug 2007 20:28:57 +0000

I think a response from one of my customers, now a client summed it up. He said that he had a written agreement with my company, not with other brokers and that he said I and my broker were responsible for the marketing of his listing and unless someone other that us has a written agreementwith him ( co-listing),our company and only our company had permission to market his property. Period!!

By: Anonymous

Anonymous — Wed, 27 Jun 2007 02:56:02 +0000

I believe the DOJ problem was caused by NAR’s freaking out about internet marketing.

At the time, some of the big wigs at NAR were ticked off the discounters were ’stealing’ their listings via the IDX to under cut the big wigs commission.

(I believe both companies that were the focus of their anger no longer exist. They were bought out by larger real estate companies that wanted their technology. I think Prudential was one buyer.)

So, the NAR hotshots like the founder of ReMax pushed a policy that said each company could specifically designate which firms can NOT display their listings. The purpose, of course, was to prevent their listings from being shown on discounters IDX web sites thus benefiting the discounters.

NAR might as well have said to DOJ, “Please investigate my entire indusry for the next decade.”

By: Chris Burdzy - Staten Island Real Estate

Chris Burdzy - Staten Island Real Estate — Tue, 26 Jun 2007 21:08:43 +0000

I agree that DOJ should not dictate NAR and Realtors how to share their listings. I do like the Realtor Magazine though – always something worth reading.

My 2 cents…

By: Kaye Thomas

Kaye Thomas — Sat, 23 Jun 2007 17:32:59 +0000

Well thought out post.. DOJ has a lot of axes to grind about real estate and I suspect that their ultimate goal is to regulate and determine commissions.. The MLS system is set up as a private arrangement for brokers who pay a fee to join and monetarily support the system. Rules are pretty clear.. to join you must be a licensed Broker/Agent. If I want to join the Bar Association I have to an attorney who passed the bar.. if I want to be a member of SAG I must have some tie to the entertainment field and credentials to prove it.. I can’t just pay a fee and get a card..Same with real estate.. you want to be part of the MLS get a license and join.. it’s not a public entity.
Also by going after REALTORS® it takes the heat off other areas DOJ should be investigating.. like why all the small cable TV companies are being gobbled up by one or two big companies.