Flat Fee MLS

Consumers can opt for lesser services if inclined

Tennessee has passed a bill establishing minimum service requirements for all real estate licensees unless such duties "are specifically and individually waived in writing by a client." The bill mandates licensees assist clients in the showing of properties, receiving all offers and forwarding them to the client, answering client questions during negotiations and advising clients as to what is needed for a successful closing. The passing of this bill comes on the heels of the rejection of a similar bill in Kentucky that sought to establish new minimum service requirements. Attempts of legislation and state regulators to establish such "minimum service" requirements have been opposed by federal agencies like the Department of Justice which say such proposals restrict consumer choice and have an anticompetitive effect on the real estate industry. These minimum service requirements are a rash, direct response by the traditional agents and the National Association of Realtors to impede the growth of, and eliminate flat fee MLS brokerages and discount brokerages. Their weak basis for such claims and laws only reflect the hypoocracy and lack of ethical fortitude the National Association of Realtors is working so hard to overcome. For supporters of these measures to hide behind the facade of worry for consumers is a farce - if they are worried about consumers then give them a choice. Preventing competitive models only serves as a way for agents to ensure commission rates will be fixed for years to come. Worried for consumers…give me a break. Agents are scared, and NAR has the clout to fight.

See Also

• Tennessee legislature passes real estate service bill
  Clients can opt out of brokerage services in writing

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Real Estate Discounter Makes its Mark

In a traditionally strong real estate market, Florida homeowners are valuing the added equity they keep through utilizing the services of flat fee MLS and discount brokerages. In its first year Expert Realty has reportedly grabbed 5 percent of the market share in single family homes under $500,000 in Palm Beach and Broward counties. On a daily basis the market share of flat fee MLS brokers and discount brokerages is growing as consumers are now finding alternative methods to marketing their homes effectively without having to pay out the traditional 5 to 6 percent in realtor commissions.

See Also

• South Florida discounter makes mark in first year
  Expert Realty offers 2.5% commission to consumers

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New limited service definition recommended

The Virginia Association of Realtors today released their first draft of a proposed legislative change to Virginia’s real estate agency law. The new law would allow real estate brokers to provide real estate services on an "a la carte" basis thereby allowing home buyers and sellers to choose the types and levels of real estate services they want rather than being forced to purchase a bundle of services for a relatively high commission rate.

The new legislation comes at a time when the debate over "mininmum service requirements" for real estate agents and brokers is being waged across the country. Several states, under pressure from Realtor Associations, have already passed legislation requiring real estate brokers to perform certain minimum brokerage acts such as receiving and negotiating the purchase contract on behalf of the home seller, providing real estate advice throughout the transaction and even attending the real estate closing. The effect of these requirements has been to pressure flat fee and discount brokerage models into having to alter their service offerings to provide bundled services and, of course, forcing consumers to pay more for professional real estate assistance.

More…

See Also

• Texas passes limited-service real estate law
  Debate among discount, full-service brokers continues

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