Issues affecting the fee-for-service brokerage
There is concern about the sustainability of the business model as fee-for-service brokerages face regulatory changes. In Canada, discount brokerages claim their access to the MLS has been limited by the Canadian Real Estate Association (CREA). As a result, the Competition Bureau has made inquiries into proposed changes. In November 2006, Realtysellers (Ontario) Ltd. suspended operations, claiming itself a casualty of CREA's actions, despite its victory in 2004 in a protracted legal battle over access. Meanwhile, consumers await rebate cheques (cash back) with increasing uncertainty.
In addition, there is speculation that the business model is not economically viable given increasing brokerage and registrant costs, competition, and liability (which could lead to disciplinary penalties). However a number of flat fee brokerages have maintained profitability over periods of 5 years and longer and continue to do so in spite of these obstacles. There is a growing sentiment within the industry that "fee for service" will eventually supplant the traditional brokerage model as growing consumer distaste for the inefficiencies inherent in a commission based system broadens.
Avar Realty is part of the Help Me Sell Network. Our Help Me Sell website is Http://huntsville.helpmesell.com We abide by all Alabama Real Estate Commission laws and guidelines. We cooperate fully with all real estate professionals. Member of the Chamber of Commerce, National Association of Realtors and North Alabama MLS Service.
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