There has been a lot of talk of late concerning the minimum service laws (MSLs) and how anti-competitive it is for some agents or brokerage models. I personally believe that the MSLs are a good thing in that it requires all of us to be on equal footing at least at a very basic level. For those of you who have not heard the latest bru-ha-ha over MSLs, click on the following link: In case you are not familiar with Angie's List® this is a monthly magazine which provides a service provider rating and referral system to its subscribers. FYI - They don't allow Realtor referrals but if you follow the link below, you'll see that they don't mind weighing in on how our industry should operate!
https://www.angieslist.com/AngiesList/MemberMenu/Publication/Stories/2006/rumble.asp
Why is Minimum Service so scary to so many?
Wait, so let me get this straight. There seems to be a number of people that want to sell their homes without the aid of a Realtor but then again, not. Okay, let me put it another way. These people want the help of a Realtor to sell their homes but do not want to pay for the service or they want the exposure of the MLS but don't want to be bothered by agents offering services they don't need or want.
Then you have a number of agents (Realtors?) that can't provide minimum services without charging full commissions because somehow these minimum services put a huge strain on their business.
I admit that I am not fully versed on the Minimum Service Laws in other states but here in Illinois the only effect that I have seen has been to improve service to the consumer. In almost every state you can still find companies that offer minimum service options and it doesn't look like they are going away any time soon. The agent from Indiana says agents will be required... "to provide "minimum" services, such as answering questions, presenting offers and assisting in the closing process, even if the homeowner doesn't want or need help." He goes on to say that these minimum service laws "have forced him to eliminate his $499 option in favor of a full-service package costing $1,995. "Who will be the biggest losers? "Consumers." he says.
What a load of crap! Why would anyone hire a real estate agent, pay a commission, discount or otherwise, and not want the agent to help with the details of presenting offers, negotiating contracts and helping with other myriad details of the transaction. Heaven forbid he should have to answer questions! If a seller wants to do all the work himself, then he should save the $499, create his own web site and run his own ads. In my company, $499 doesn't even begin to cover the cost for the MLS, 30 plus web sites, direct mail advertising and the dozen or so other things that are included in our ‘discount' program. But yet I still have time to arrange showings and answer questions!
I have dealt with agents, from franchise to independent, discount to full commission that don't answer their phones and aren't available on weekends. Agents that let their sellers make all the appointments and run their own ads, some don't even put a sign in the yard! All of these agents call themselves professionals but just how professional is it to lose a buyer for your client because you weren't available to answer the phone or set up an appointment. These agents are one step above con artists and the main reason why so many people distrust Realtors. Of course they aren't about to tell their client about these lost opportunities. Even if so inclined, how could they, they're not even aware there was an opportunity!
It is inherent in being the agent of another that you represent that person in a transaction. This is the definition of the word "agent." So those who say that MSLs are somehow bad for the consumer are the ones who are harming the consumer. If an agent does not provide even these minimum services, exactly what are they doing for their client? Short of the MLS listing and a few Realtor only web sites, sellers always have had the option of selling their own property without an agent.
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