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Indiana has enacted a minimum service law for real estate transactions against the will of consumer groups. Now instead of buying the real estate services that you want, a buyer is going to have to get all of the services a real estate agent has. While this makes sense for the beginner or casual buyer, for the sophisticated real estate dealer all this does is raise the cost of the  transaction.

Of course, leading the way was the Indiana Association of Realtors working hard to protect their position in the marketplace. While I understand the need, with the new tools that are available to the general public some of the services of a full service broker are  no longer needed. And by taking the all or nothing position, realtors are going to end up with nothing as new models emerge and the political power of the trade associations is broken.

A new state law will require Indiana real estate agents to provide a list of services that may seem like the basics to those who’ve bought and sold a home: Answering questions, handling offers and counter-offers, and assisting with the transaction paperwork.

But critics of the law, which will take effect Saturday, say it will squeeze out an emerging choice for home sellers in some areas — one that lets clients choose and pay only for the real estate services they want. The so-called “a la carte brokers,” more common in larger cities than in smaller towns or rural areas, offer a menu of services for sellers who want to handle part but not all of the transaction themselves.

For example, a broker might charge $500 to put a home on the privately run Multiple Listing Service, which makes it readily available to thousands of real estate agents across the state and country. But the homeowner would handle showings, offers and financial details by themselves or with the help of an attorney.
The new law, pushed by the Indiana Association of Realtors, will require that broker to provide other services as well. via the Courier Journal.

Related posts:

1. Minimum Service Laws Can Hurt Consumers
2. The Kentucky Legislature Stops Real Estate Monopoly Legislation
3. Indiana Says 360 Mortgage Brokers Face Sanctions Over New Regulations
4. Indiana Leads Nation In Foreclosures
5. Indiana Attacking Mortgage Fraud: A Long Awaited Trend?