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NAR, Realtor.com, ForSaleByOwner.com - Too Much Misinformation!

By Ann Cummings

Real Estate Agent with RE/MAX Shoreline - NH and Maine NH and Maine Broker

November 17, 2008 02:38 AM

Over the last couple of days, I've read so many posts here on Active Rain and on other blogs outside AR talking about the brazeness of NAR and REALTOR.com seling out to ForSaleByOwner.com by allowing for-sale-by-owners listings into REALTOR.com. How dare they do that to REALTORS, etc., etc.

ForSaleByOwner.com put out a press release stating they'd worked out a deal to get the first ever access to put listings up on REALTOR.com without having those listings go through any local MLS. Apparently that press release was not based on any facts nor any such agreement with REALTOR.com or Move.com, which operates REALTOR.com.

The press release put out by NAR can be read here ---> "ForSaleByOwner.com Statement Misleading"

The bullets from NAR, per a response Saul Klein of Internet Crusade received from NAR and published on RealTalk are these:

This announcement was issued without REALTOR.com's knowledge or participation and unfortunately is misleading to both consumers and the REALTOR community. We've asked ForSaleByOwner.com to issue a retraction today.
There is no formal relationship between ForSaleByOwner.com and REALTOR.com.
While there are many perspectives regarding the DOJ-NAR settlement, it is our opinion that the settlement agreement made no provision to allow unlisted properties, such as "for-sale-by-owner," to be posted on REALTOR.com.
In order for a listing to appear on REALTOR.com, it needs to be placed in an MLS. As a result, every property on REALTOR.com must be listed by a licensed real estate broker.
From what we understand, ForSaleByOwner.com is using the following process: ForSaleByOwner.com is working with licensed Brokers who enter the listings on an MLS. In turn, the MLS sends the listings to REALTOR.com and we display them on the site. Thus, such ForSaleByOwner.com listings are no longer "For Sale By Owner" listings, but in fact Broker represented.

REALTOR

Hillary Marsh, the Managing Director of REALTOR.org, wrote a post refuting what ForSaleByOwner.com put. Her article is here ---> "What ForSaleByOwner.com Said is SO Not True!"

Hillary's bullets in her article are:

They are NOT in a partnership with REALTOR.com
The settlement between NAR and the DOJ did NOT force REALTOR.com to accept FSBO property listings
Properties from sellers not represented by REALTORS will NOT appear on REALTOR.com
MLS's still get to decide which listings to distribute to REALTOR.com

There's an abundance of misinformation out there on all kinds of things, and many are far too quick to buy into it because they read it online and/or because it's written by certain people or showed up on certain blogs so it must be true. I just wanted to get the real information out there in the hopes that those who've read the posts with the incorrect information in it will see that what ForSaleByOwner.com put out there is NOT the truth at all. And that despite many shortcomings, REALTOR.com or Move.com did not sell us out on this one.......... not yet anyway.

Ann Cummings, New Hampshire REALTOR
RE/MAX Coast to Coast
Portsmouth NH
  ann@anncummings.com
      888-349-5678     x 3839
Servicing the Coastal Areas of NH & Southern Maine

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Susan Milner

Florida Future Realty, Inc. - Cape Coral, FL

Cape Coral Real Estate Broker, FloridaFutureAgents

I didn't read all of the comments; will next but I still believe that NAR needs to create some type of rules here. If a local board decides to allow non NAR members to be members of MLS only I don't see the issue but I do see the issue with NAR allowing those listings on their website; the one that represents NAR and we are the only ones that pay the dues; not these non-NAR companies.

Nov 17, 2008 11:27 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Gail - I like that idea, "RealtySnopes.com"!!! Great idea!

Donald - I wonder if there's a REALTOR.com blog where you could talk about their rates? There probably is somewhere.

Monika - I agree totally with your comment about this hurting REALTORS, and many times those unrepresented sellers end up getting hurt too, and many times they don't even know it.

Christopher & Stephanie - $1.00 a share! Wow, and when I think back on where that stock had gotten to when I sold mine way back when. I wonder what it will ever climb back up to?? Certainly not likely to ever get back up to the price it was when many sold their shares that were puchased as an IPO.

Ann

Nov 17, 2008 11:29 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Mara - Yeah, that would not have been good at all. I'm thinking there might have been a little bloodbath over that one had it been true.

Susan - the local or statewide MLS's are the ones that decide which listings go up onto REALTOR.com, so the issue would be with your local MLS and how they handle non-REALTOR members.

Ann

Nov 17, 2008 11:34 AM

Randy L. Prothero

eXp Realty - Hollister, MO

Missouri REALTOR, (808) 384-5645

In this age a information over load, there is a lot of misinformation being passed around. It puts a big burden on everyone to check out what they are reading.

Nov 17, 2008 12:08 PM

Susan Milner

Florida Future Realty, Inc. - Cape Coral, FL

Cape Coral Real Estate Broker, FloridaFutureAgents

Ann, i agree but I still believe that since NAR is National that they need devise some sort of ruling that is to be followed by state & local Associations. Guidelines would be good.

Nov 17, 2008 12:43 PM

Kathy McGraw

CELLing Realty - White Water, CA

Riverside County CA Real Estate

Ann- I think the point that there's a lot of misinformation out there has been proven over and over, but this was just too much. Some people have a lot of nerve that's all I have to say :)

Nov 17, 2008 01:41 PM

John Novak

Keller Williams Realty The Marketplace - Las Vegas, NV

Henderson, Las Vegas and Summerlin Real Estate

One of the dangers of the Internet is how easily it can create 'false authority.' If something doesn't sound right, people need to question it -- regardless of how credible they believe the source to be.

Nov 17, 2008 01:47 PM

Misty Lackie

Go Smart Solutions, LLC - San Luis Obispo, CA

Real Estate Advertising

Sounds like the sources everyone should be upset with are ForSaleByOwner.com and the Brokers who are willing to participate in the system that ForSaleByOwner.com is presenting. ForSaleByOwner.com would not be able to accomplish this without those participating Brokers. Not sure why Brokers/Agents would want to participate with ForSaleByOwner.com, especially seeing how dishonest and misleading they were in the press release.

Nov 17, 2008 02:07 PM

Kristal Kraft

Novella Real Estate - Denver, CO

Selling Metro Denver Real Estate - 303-589-2022

The rumor is jsut that, a rumor but they sure got a lot of milage out of it. Who could afford to pay for this sort of advertising!

Nov 17, 2008 02:42 PM

Gena Riede

Riede Real Estate, Lic. 01310792 - Sacramento, CA

Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Ann, well thank God. I certainly hope that Realtor.com and Move.com remember whence they came from...sometimes they seem to forget.

Glad to see that you are setting the record right.

Nov 17, 2008 03:17 PM

Midori Miller

Talk 2 Midori, LLC - Daytona Beach, FL

Online Marketing For Real Estate Professionals

Ann-so much mis information is available isn't it? It's sometime so time consuming to get the facts...It doesn't matter to me what MLS listings go in there...except the key words there...is MLS listings and should be listed with a broker regarless of fees...regardless of property it just needs to be listed with a broker!

Nov 17, 2008 10:48 PM

Jason Ellis

Coastal REO Solutions - Myrtle Beach Short Sales & REO's - Myrtle Beach, SC

FSBO -- like they say about people who represent themselves in court -- "The one that represents themselves has a FOOL for a client" :) Great post thanks for sharing -- JE

Nov 18, 2008 01:36 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Hi Randy - it was great to meet you in Orlando! The internet has sure made a proliferation of all kinds of info - good, bad and indifferent - so readily available, and I know there are plenty of people who are too quick to believe what they see online because it's online.

Hi Susan - they do have a ruling and it's that the statewide and local MLS's have the choice in what listings they allow to be uploaded to R.com. Choice has to be there, or the DOJ could be all over them again, and who wants that?

Hi Kathy - ;-) Just sayin'......

Hi John - yep, 'false authority' is one of the by-products of the online world we live in. It is really too bad a little more digging isn't done before jumping on the bandwagon of some stuff.

Hi Misty - I couldn't agree more with you comment about taking part in that type of business model, but then that kind of choice is what makes the world go round. I don't know why consumers choose that route, but that's their choice. Most end up with a full-service broker here in my area, at least those that I've tracked, so why not start there to begin with......

Hi Kristal - as that old saying goes, bad PR is better than no PR at times, and it just may have been for them on this one, sadly.....

Hi Gena - thanks, hope this clears up some of the misinformation that had taken on a life of its own.

Hi Midori - yep, listed with a broker is the key. Their choice of business model, well that's a whole other discussion....

Hi Jason - can you see me smiling about your comment!?!?!?! ;-)))

Thanks for the great comments everyone!
Ann

Nov 19, 2008 01:29 AM

Tracy Santrock

Santrock Realty Group Inc. , - Cary, NC

Raleigh - Cary Broker

Hi Ann,

The NAR published a press release today indicating that in no way will the MLS system and NAR publish FSBO listings. To bad the FSBO guys got all of that publicity. On the other hand, we have seen Zillow pick up the Houston MLS listings. With syndication, the MLS could look radically different in 10 years. My two cents.

Nov 19, 2008 11:47 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Hi Tracy - it's about time that press release appeared, although at this point, it's too little too late. They did get a ton of mileage out of that publicity for sure.

Ann

Nov 19, 2008 12:03 PM

Angela Clark

Tony Clark REALTORS - Owensboro, KY

CRS, Realtor, Broker

A Fool for a client indeed!

Thanks for clearing the air around this issue!

Nov 29, 2008 08:54 AM

Ann Cummings

RE/MAX Shoreline - NH and Maine - Portsmouth, NH

Portsmouth NH Real Estate Preferrable Agent

Hi Angela - you're welcome, and many thanks for reading this post!

Ann

Nov 29, 2008 01:00 PM

Brandon Jordan

ERA American Real Estate - Crestview, FL

I wanted to add this post and pose the question why hasn't www.Realtor.com forced the issue with ForSaleByOwner.com as of today almost six months after the above post and well after the discussion has been going on you can visit the site and see the offer still active saying go thru ForSaleByOwner.com to list on Realtor.com is still there and people would not know that this is mis leading?

May 12, 2009 07:14 AM

Ann Dail

Baton Rouge Area Homes, Louisiana, USA, 225-761-0551 - Baton Rouge, LA

Broker/Realtor,CRS, ePRO, SRS, B.A.Chem

I, like Brandon, checked this week and still found ForSaleByOwner.com encouraging direct contact with owners. Disappointed in NAR. This misleads the public.

May 12, 2009 09:21 AM

Maureen McCabe

HER Realtors - Columbus, OH

Columbus Ohio Real Estate

Here it is! I knew at least one person wrote about it on AR in November but I was pretty sure it was Members Only, I recognized the issue when it was brought up about another company using the loop hole now. eList.me? I thought reading it last fall that NAR could stop it.

I think if you look at it carefully you will see that NAR can not do anything about it. The members doing it are real estate agents and members of NAR. The listings are limited service listing... in an out of state MLS. Just a different business model.

I don't think NAR even got ForSaleByOwner.com to print a retraction for saying they had a partnership with Realtor.com

May 12, 2009 10:06 AM