Another Real Estate Bottom Feeder . . . Rises to The Top

Another Real Estate Bottom Feeder . . . Rises to The Top

It's been slightly less than 10 years since the DOJ settled its lawsuit against the NAR,

The settlement amounted to the break-up of NAR's memberships' work-product, otherwise known as: the listings.  

For further reading, here is the DOJ vs. NAR Final Judgment

What was hammered out in the Nov. 2008 settlement is merely the basis of this post, not the review of it.  However, once dust settled, then the fun started.  The third-party leech sites emerged.  

Not only did the third-party leech sites come on scene, but every wanna-be "get rich quick, I got a better way to slice white bread while building a better mouse trap" emerged.

I'm not going to get into what was the intended / unintended consequence of the settlement agreement. But, I will use Sir Issac Newton's 3rd Law of Motion:  For every action, there is an equal and opposite reaction.

Of course, Newton was talking about physics, and not legal matters.  

" When one body exerts a force on a second body,

the second body simultaneously exerts a force equal in magnitude

and opposite in direction on the first body "

Several weeks ago, I became aware of a real estate business model.  Apparently, this outfit skims the IDX feed, which is permitted thanks to the DOJ vs. NAR settlement.

What the settlement does not stipulate, or allow, is manipulation of data by the third-party and/or NAR member.  And, NAR's Code of Ethics frowns upon meta-tagging, misleading (which sounds so much nicer than false) advertising, and confusion of the general public.  Which is IRONIC, since the DOJ vs. NAR lawsuit was filed because of the general publics' -- alleged -- confusion with real estate market information.  

Since the settlement, bottom feeders make information about as clear as mud.  But, that doesn't stop them from sucking up the data, and putting their own happy spin-off on it. 

There is a company in my local real estate market of Portland Metro who has an IDX feed running through their site.  We all do.  But what makes the feed appear to have fallen to the bottom is this real estate companies BRANDING method -- with other brokerages' work product, i.e.,:  The Listing!

Simply put:  The IDX listing feed, which contains the list price, is tagged/branded with a suggested est. rental price -- which is part of their business model:  To find renters for properties they . . . wait for it, wait for it, wait for it  . . . don't own.

There is nothing in the local  listing agreements of which I am aware that obtains permission from the sellers to advertise their property as a RENTAL by a third-party / competing brokerages' site.  We don't even have rentals on the RMLS in our area.

2016 NAR Code of Ethics.

• Standard of Practice 12-10

REALTORS®’ obligation to present a true picture in their advertising and representations to the public includes Internet content posted, and the URLs and domain names they use, and prohibits REALTORS® from:

1. engaging in deceptive or unauthorized framing of real estate brokerage websites;
2. manipulating (e.g., presenting content developed by others) listing and other content in any way that produces a deceptive or misleading result;
3. deceptively using metatags, keywords or other devices/methods to direct, drive, or divert Internet traffic; or
4. presenting content developed by others without either attribution or without permission, or
5. to otherwise mislead consumers. (Adopted 1/07, Amended 1/13)

" Article 16 ~ REALTORS® shall not engage in any practice or take any action inconsistent

with exclusive representation or exclusive brokerage relationship agreements

that other REALTORS® have with clients "

I'm not a listing agent.  I practice Exclusive Buyer Agency.  But, if my SELLERS' property was on an IDX feed with a RENTAL PRICE on a competing broker's website in order to bait buyers and turn them into tenants . . . I might have to advise my clients to OPT OUT of the IDX feed altogether (which sellers may do under the DOJ vs. NAR settlement agreement). 

As a seller, I would have the position that my proeprty is not fish bait for bottom feeders.  But, I know too much about how the listings are used.

• Standard of Practice 16-18

REALTORS® shall not use information obtained from listing brokers through offers to cooperate made through multiple listing services or through other offers of cooperation to refer listing brokers’ clients to other brokers or to create buyer/tenant relationships with listing brokers’ clients, unless such use is authorized by listing brokers. (Amended 1/02)

• Standard of Practice 16-19

Signs giving notice of property for sale, rent, lease, or exchange shall not be placed on property without consent of the seller/landlord. (Amended 1/93)