Flat Fee MLS, For Sale By Owner, Home Buyer Rebates

Following in lock-step with state Realtor associations and  real estate commissions around the country, the Idaho real estate commission’s proposal effectively eliminates new business models that offer consumers the ability to pick and choose just the real estate services they want.

Why would a governmental body with the primary purpose of the protecting the consumer want to limit consumer choice and  increase the amount that consumers have to pay for real estate services? The answer lies in how real estate commissions and Realtor associations are comprised. Generally the majority of real estate commission members (and Realtor associations members) are traditional real estate brokers who own or work for companies whose businesses are being threatened by newer business models that offer reduced or limited services to consumers for lower fees.

Their ‘modus operandi‘, which has been effective in many states so far, has been to introduce legislation under the guise of "consumer protection". By enforcing so-called ‘minimum standards’ on real estate brokers, such as having to prepare, review and present real estate contracts and counter-offers, these laws eliminate the ability of the consumer to choose not to have those services if they so wish. And they effectively require real estate brokers to charge more for their services.

If, for instance, you just want to list your home in the Multiple Listing Service (MLS), you must not only purchase that service, but all of the other services enumerated by the "minimum service" laws. Without access to the MLS, demand for a property is lowered and, of course, demand affects the final sales price.