Thanks to everyone who gave me a heads up, and to G.H. who sent this link to the Arizona Star:
WASHINGTON — The Justice Department gave a boost today to online real estate brokers — and potentially their clients — by forcing new industry policies that give Internet-based agents access to home listings they were previously denied.The tentative settlement, which still requires court approval, could save consumers thousands of dollars when buying a home.Online real estate agents often charge discounted commission fees and let buyers review listings at their own pace.
Essentially the deal requires the 800 multiple listings services associated with the National Association of Realtors for various local markets to give access to Internet-based competitors, the government said.
The real estate group did not acknowledge wrongdoing in the settlement, which it described as a "win" for both consumers and agents.
"We think it’s great," said Lucien Salvant, a spokesman for the National Association of Realtors. "There was no evidence ever brought by the Department of Justice that there was a problem."
You have to wonder why, if the NAR thought this was such a great idea, they didn’t open the MLS in the first place.
This could be quite a blow to the NAR, who is already seeing its ranks thin as agents flee the industry in search of more lucrative pastures. There are agents who have joined the NAR for MLS access. This may cause the ranks to thin even further.
And now MLS access in Phoenix is going to be more expensive. From Bob Bemis in an email to agents:
Two questions immediately come to mind: Why so much? And why now? ARMLS has traditionally based its business model on providing the minimum service needed by our agents at the most minimal cost. That model is changing as agents demand more services, more options, better connections, and more features in their MLS system. Your MLS system needs to grow to stay competitive with what consumers experience in the online space. When consumers can get richer detail, better maps, more sales data, more expansive coverage areas, and a wider variety of online valuation tools from public Web sites than agents can from their MLS, the technical service model is broken and must be fixed. We can fix it with a new MLS system, a wider variety of maps, links to outside service providers, more tools with which to better serve your clients and increased security protection for your most valuable asset – the real estate listing data.
The Mid-Florida MLS which includes Naples, Tampa, Orlando and surrounding areas went up 50% ($200 to $302). Much of that gain though is the expected loss of REALTORS from MLS renewals. MLS is pretty much a fixed cost resource, so the more participants, the lower the price.