The multiple listing services around the United States may be wise to watch what is happening up in Canada. Real estate leaders in Canada have been brought before the competition committee to see how the use of the MLS up there increases the cost of housing.
The Competition Bureau of Canada is playing its cards close to its vest, but it confirms it is leaning on the real estate industry nationwide to “voluntarily” ease rules that impose high costs on sellers who use the ubiquitous Multiple Listing Service.
And the bureau has some big sticks to wield if it doesn’t get its way. A spokesman notes it can impose administrative penalties of $10 million to $15 million, or it can directly order a change in the practices that force home-sellers to choose between paying five-figure commissions or having their listing excluded from MLS, which is by far the largest point of contact with potential buyers.
A letter from the Ottawa-based Canadian Real Estate Association to its 100-member associations has been leaked around the southern Ontario media. But, never mind that the horse is gone, the Vancouver Real Estate Board is steadfastly holding the barn door shut, refusing to release or comment on the letter.
Because the MLS systems in the United States are diffuse and regionally based, the chances of a one time intervention are much slimmer. The rules and regulations they have are reminiscent of a cartel that is designed to limit competition and create additional expenses for buyers. With the alternatives from companies such as Trulia and Zillow waiting in the wings, if the government decides to go after the National Association of Realtors and the MLS infrastructure for anti competitive behavior, it could be a nasty fight.
And potentially very beneficial for the consumer.
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As for Tyler,for these days,we can trust the big guy. Let's hope that he learned new strategies to lessen the MLS pressure. This problem almost occurs everywhere. Thinking of solutions and making the best decisions would do great,also for the Real State Industry.
This should be interesting to watch. Thanks for the heads up
So therein lies the same problem that we face on many things. Should we believe that bigger is better and we should trust the big guy? Or should we have many little guys all fighting for resources.
-Tyler
It's a time bomb.