What to do about these entry only sites!!!!

Hi Jay,

The post right above yours is from me and a related topic. I think we posted at he exact same time. Very hard to regulate that type of business in the MLS due to "free trade" laws. Can't set commissions. They may be able to set minimum amounts of service for having a listing in the MLS. But how could you regulate it? I agree it is an issue and I am not sure how it will be handled in the future. But hey it's a free Country and I'm glad to be a part of it. 

Once again there is a need for N.A.R. to create a set of minimum standards for Realtors and services. 

 ISO standards have been adopted in every other industry I can think of.  Standards for merchandise to services are determined so things work the same around the world. 

As REALTORS if we had to meet certain standards, the public could be reasonably assured when they hired a Realtor they could expect a certain level of experience and professionalism.

Like the heart surgeon described by Jay in the initial post, MLS submission policy needs to set minimum service requirements and ENFORCE them.  Otherwise its a mess that the other agent who is not getting paid to do so is fixing.

kk

As the wave of the future continues to ripple so will the Flat fee services.. Consider a seller who has a home that even at bank appraised value is marketable at $600,000.  at 6% commission is $36,000.00 divided by two brokerages and then divided by broker and agent can be equivalent to approximately lets say $13,000.00 to the agent who has a split that equates to that.  Most seasoned agents that are not with a per month fee brokerage may be in that range. 

Sit in the clients mind and imagine this:  Hmmm...i have to pay a real Estate agent $36,000.00 to sell my house.  the agent fills out a form to submit the listing on the MLS.  Advertise in a few local real estate books, put a sign on the property with click and point flyer software and place a box for flyers and or brochures, hold a few open houses garnering other potential buyers and sellers of other properties and on and on...Tell a client who just went through that process that this is worth $36,000.00 and then stop wondering why clients are moving slowly to flatfee services.

Not that I am a advocate of flat fee services! 

Consider the Seller who got caught in the trap of "borrow up to 125% of the equity in your home" or an Interest only with an option arm that starts at 1.25% causing even interest arrears at closing time.  

In my opinion...there is room for all formats of listing and selling commission structures.  It is not about flat fee vs 5-6% commissions...it is truly about honest and sincere business practice. 

All business models should have a place in a free market system. The real question is honestly informing the public what they are getting when they contract for services from a Realtor. Eleven or so states have passed minimum services laws of one kind or another. Even though the Dept. of Justice has opposed them doing so they have done so to protect the Consumer.

Every state should be requiring this type of disclosure. The public needs to be informed as to the amount of service they can expect when they contract to sell a home.

I wanted to reply to Don's comments about our commissions being viewed by sellers as too much for the services we provide.  The way I see it you just described less than half our job.  Marketing a property is only a fraction of our cost.  What about the hours upon hours we put in our preparation, education and sales skills.  Once we attract the right buyer, it takes skill, comunication and integrity to gain the clients trust and put a transaction together.  What about all the ones that don't come together?  All the buyers you have worked with who have never bought.  All the sellers who withdrew, cancelled or expired.  What other industry works absolutely free and puts in their time and money without any guarantee of payment?  We take such a risk getting in to this industry so our reward has to be justified.  The good agent, like the good athlete, makes it look easy.  So don't ever let anyone tell you we make too much $.  We have earned every $ we make.  Just look at how many real estate agents get in to the business and don't make it passed the 2nd year!

Elias Papadopoulos