Online real estate brokers now have the playing field leveled…
The Justice Department gave online real estate brokers a boost Tuesday by forcing the NAR to open access to the MLS.
The National Association of Realtors could no longer discriminate against Internet-based agents by blocking them from the MLS.
Online agents often charge lower fees and allow consumers and/ or give legal kick backs to buyers. In the previous real estate boom it wasn’t unusual to see a internet broker advertising up to 2% back to the buyer at closing for using their service. On the listing side its common that internet based brokers will list homes for a flat fee vs the traditional commission.
How do they do this and afford to stay in business? Dramatically lower over head. Also, consumers desire to get the reduced sales fees or cash back at closing.
“When there is unfettered competition from brokers with innovative and efficient approaches to the residential real estate market, consumers are likely to receive better services and pay lower commission rates,” said Deborah A. Garza, deputy assistant attorney general for the Justice Department’s antitrust division.
“Today I can say with the clear knowledge — reinforced and underscored by DOJ’s settlement compromise — that the real estate industry is dynamic, entrepreneurial and fiercely competitive,” NAR President Richard F. Gaylord said in a statement.
The Justice Department and Federal Trade Commission released a report last year that said limits on discount brokers’ access to Web listings of for-sale properties has prevented consumers from receiving the cost savings and other benefits that online competition has brought to other industries.
What does all of this mean to you?
You tell us…what do you think about all of this…how will this effect your business…your market?
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