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FSBO's Using Our MLS Services? Should they be allowed.

Yesterday while reading through some of the information on my local MLS service board I came across a comment on how one Realtor was outraged by the local MLS allowing FSBOS to list their houses on Board of Realtors local MLS services for a couple of hundred dollars per listing. She went on to say that this undermines the Realtor and the Board of Realtors relationship. Our dues are outrageous and they keep going up and then we are faced with indirectly fostering the notion that a Realtor is not really needed for servicing the Real Estate Sales community.

This issue is not new to me. When I became a broker owner in 2000 right on the MLS board search page there was an ad saying, "List your property for a flat fee." I called the board and their reasoning was that FSBOS would learn after a few months that they would later need the assistance of a Realtor and I should not worry. I questioned this thought process but did not proceed further.

As an attorney I thought this would be a great issue and could raise interest in a class action suit. FSBOS being allowed to list on MLS services undermines a Realtors greatest perceivedasset, MLS. Now FSBOS would be able to list their properties for pennies on the dollar as compared to a ccompetent Realtors commission.

The Board of Realtors in my opinion is there to raise the standards of licensed professionals who are required to act ethically and professionally. The Association or Realtors and the local boards which we join are there to protect the community, but they are also there to foster and protect and promote the industry of thousands of licensed Realtors.

To circumvent this requirement of high standards,all one needs to do to have access to MLS is be a property owner. Real Estate property owners do not have to sit for classes, take examinations or even be licensed to list on MLS Services.

The Board of Realtors, the local MLS's and The Association or Realtors should not allow the practice of allowing FSBOS to list their property on MLS services that are Realtor member MLS's. There are many services out there to list properties for FSBOS. The local MLS should protect our rights and our industry, bringing pride and exclusivity that all Realtors have earned through their many hours of hard work.

If it is just a matter of a new revenue stream for MLS Services to cater to FSBOS then let it be known that they are not working in the best interest of Realtors.

This is not a discussion of capitalism or fair competition or even fear of competition. The FSBOS have news papers, the Internet and the various other methods Realtors use to market real estate.

It can be argued that the last bastion for Realtors should not be sold and those MLS Services who bind us to policy and ethics should be ashamed for selling listings for profit while Realtors work hard and are left in the cold by the organization that is there to protect them.

I understand that the Board of Realtors is a separate entity from the MLS services, but a Realtor to be able to list on a local MLS service they must be a member of that Realtor Board.

It can be further argued that Flat Rate MLS services provided by Real Estate Companies should also not be allowed. This seems to be just another way to circumvent the MLS process and cheapening the industry making Realtors look unprofessional and obsolete. Real Estate agents should not be allowed to use their license to blindly list properties for unrepresented Real Estate Owners. Giving a Realtor $495.00 does not create, in my opinion, a Realtor Client relationship.

These are just various views I have come across and I would like to know your opinion? Should Real Estate Local MLS services allowed For Sale By Owners (FSBOS) to list on the same MLSRealtors are in essence are forced to use? Before voicing an opinion google FSBO Flat Rate and you will be surprised what you find. Maybe your MLS service is also providing this service. Maybe they will tell you the samething mine told me years ago, it is a service to you also? And before you say I am just protecting my industry, well no I am actually hoping that my Board is there to protect the interest of all Realtors.

Posted by KB Collins on 03/21/2009 11:52 PM

Comments (10)

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10 Comments on FSBO's Using Our MLS Services? Should they be allowed.

MAR

KB, I am not a Realtor, I am a stager... but what yu say makes lots of sense to me. It is unfortunate that they would allow FSBO's to list on the MLS, it doesn't serve the industry or the consumer who is much better served by using a professional to sell their home.

Thank you for your words. Something you may find interesting in my research on this topic...

http://agentgenius.com/?p=7057

It states a retraction, however it clearly states that "Listings displayed on Realtor.com continue to be provided by the MLSs, and contrary to the headline, there is NO "agent free access to Realtor.com".

However they are leaving out the tons of Realtors using their access to MLS circumventing that statement on its face.

Hi KB!
I have a feeling that there are some anti-trust issues in not allowing discount brokerages to use the MLS system in the same fashion as full service brokerages. I don't like allowing what are basically FSBO's to list their property for a discounted price, but one thing I will agree with your board on is that these discounted listing rarely stay discounted for long. It seems that they, way more often than not, change over to a full service brokerage within a month. In the long run, the public sees that you get what you pay for...not such a bad thing!

I agree that FSBO should not be on any MLS that a Realtor has to pay dues for. It also hurts the agent that eventually lists the house later and the former FSBO: the home will show that the home has been on the market longer and make it more difficult to get the money to owner wants and reduce the number of showings.

Do you mean the OWNER is allowed to list on the MLS or are they paying a flat fee brokerage to get them on there?

I feel the same way. Whats the point of having a license if a home owner can call up someone and put their home up for sale and have the same exposure than someone paying a commission. The one thing that I like about this is that you can contact the home owner directly and not get in trouble from your local board. Most agents will not service those listings at all, no open houses no paper work etc. and then they charge extra for paper work. And yes most of time they end up getting the listing plus their flat fee and commission if they sell the house.

MAR

Chris & Jenita have a good point. Many agents don't even try to work with a FSBO even if the house may fit their buyer's needs.

MAR

Since I understand the Board of Realtors and the MLS systems are separate and the Supreme Court decision behind this separation, why would the adding of a few FSBO listings for a fee to the MLS be a concern? If the FSBO is offering a seller broker fee that would be the PRIME reason for letting Realtor members of the MLS know that their listing is offering a brokerage commission for the selling broker.

If the FSBO are following the listing guidelines of the MLS with regard to photos and listing content, I don't see the issue.

For YEARS, Realtors members have been providing "rental listings" on our MLS for their clients as a "courtesy" to the detriment of property management members. Now, local property managers have our own stand along websites hosted by a large national home rental website and post rental listings on Craigslist bypassing the MLS system and Realtors entirely. I often have Realtors call me having seen a listing on CL that their clients called them about wanting to know why the Realtor did not KNOW ABOUT MY LISTING....I see it as a matter of going where the clients are...not where they are NOT

MAR

A "fsbo" showing up on the mls is basically a discount listing company affording the opportunity for sellers to choose their fee. Perfectly acceptable, and a potential anti trust violation if they are denied access, as demonstrated by DOJ lawsuits against mls's for fighting the choice of consumers. While it's called a "fsbo", it's a listed property- the rights of the listing company permit flexibility within the marketplace.

APR

These are all great points. In my view the DOJ document clears up many questions.

http://www.usdoj.gov/atr/public/press_releases/2005/211008.htm

Whenever I hear people discuss barriers to industry or groups which hold so called monopolies I always here ANTITRUST ANTITRUST... I am glad that we are all looking at this issue. As many so eloquently put it... Home ownership is the fabric of America. But I also want everyone to really know what antitrust laws are really for and how they are applied. We should hold steadfast to what the laws were really meant for. Read the article above for some insight.

The article above is a clear concise use of antitrust laws and are applied in my opinion correctly. But I have to still say a person selling their house is not in the same place of restriction as a Realtor outside the MLS stated requirements.

If I sell a pair of sneakers should I be allowed to use Nike's commercial distribution system since they maybe Nike shoes. I don't know? Keep up the great comments. Maybe you can convince me that FSBO's should be allowed to list on the MLS system I rely on for comps and accurate information. Realtors need to be proud of the service they provide and should not accept the statements that many blogs on the net saying that they do not deserve just pay for work done.

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