This week, the National Association of Realtors approved a revised policy, which could increase the difficulties of discount brokers to gain the attention of home buyers for their listed homes for sale.
This new policy contains information on that real-estate brokers receive from their local listing services. These listing services are databases that are usually controlled by local Realtor companies. The policy also states that brokerage firms have the choice of excluding homes on their websites when placing listings form the MLS.
Though to exclude listings, the brokers must exercise objective criteria. This criteria is suppose to include type of property, the location of the property, compensation presented to agents that find a buy, or the level of service given by the company providing the listing. Such policy would then exclude brokers with limited service from other and better brokers.
In contrast, it also asserts that multiple-listing services must provide all kinds of listings available to participating broker websites. And it is up to the brokers, not the MLS to chose which listings are suitable for the individual broker sites.
In recent months, the Federal Trade Commission has cracked down on multiple-listing services that excluded certain kinds of listings from their computer feeds to local brokers’ sites and national sites, such as Realtor.com. Several MLS operators have agreed to end such practices. But the new Realtor policy may encourage more local brokers to leave discounters’ listings off their sites by making clear that the level of service provided is an acceptable reason for exclusion.
In the past months, several multiple-listing services received a severe crack down from the Federal Trade Commission. These multiple-listing services excluded specific listings to small local sites and larger sites including Realter.com. Many MLS operators have decided to put an end to these multiple-listing services. However now with the new realtor policy, such local brokers may feel encouraged to exclude discount listings from their sites depending on the level of service provided.
“We spend a lot of money advertising our Web site to the public, and we have a right to put what we want on our site,” says Harley Rouda Jr., chief executive of Real Living Inc., a brokerage chain in 15 states that is based in Columbus, Ohio. He states that his company has already been allowing its local offices to keep listings from rivaling companies on a case-by-case basis. Rivals are unhappy that with the policy in that “can spend more money to promote their own websites”.
Because of the policy, there are a number of problems, one being that viewers of a local broker website are most likely unaware of discounter listings. Though Mr. Rounda has assured that buyers that sign representation agreements with Real Living Inc. will be presented with information for all offerings that could appeal to the buyer.
