(Replying to PARENT post)
Part of the problem is that most realtors want it that way. I live in Austin, and the push for a few years now has been to have a "silent market" where a buyer picks a "full service" realtor (AKA full commission), and gets a week or so jump on properties being listed in the MLS. This gives them a better chance to get the property before the MLS hordes descend and start bidding it up.
The part I've never understood is, as a seller, why wouldn't I want my property to have the largest exposure and the most interested buyers. Presumably, having people getting into bidding wars for something i'm selling is a benefit.
👤StillBored🕑6y🔼0🗨️0
(Replying to PARENT post)
Zillow CEO argument falls on it's face. If this was such an important transaction, buyers would chose top dollar firms across the board, contractors, architects, masons, etc. Yet the fact all these survive the most competitive, bottom dollar market. Only realtors who carry no liability compared to the above, they still enjoy top dollar. This is a rigged market signal.
👤pointillistic🕑6y🔼0🗨️0
(Replying to PARENT post)
Nothing came of it? The whole Virtual Office Website (VOW) thing got created.. before meetings NAR and RESO intone legalese about encouraging competition. There's a lot of fear that the FTC will step back in and do something. With the level of MLS balkanization, innovation has a bunch of high hurdles.
👤guest2143🕑6y🔼0🗨️0
(Replying to PARENT post)
There's a reason that NAR has their logo on a nice building a few blocks down from the US Capitol (500 New Jersey Ave NW). :-)
👤linsomniac🕑6y🔼0🗨️0
(Replying to PARENT post)
> a truly competitive market would probably put the commission in the 1-2% range.
This depends a lot on the price of the house. Selling a million dollar home isn't 10 times more work than selling a $100,000 condo.
👤JamesBarney🕑6y🔼0🗨️0
(Replying to PARENT post)
Looks like you've got a lot going on but I'd love to learn more about your thesis and thoughts on RE. I'm working on some projects in the area.
👤Artistry121🕑6y🔼0🗨️0
(Replying to PARENT post)
Property transfers, including buyer, seller, and sales price, are public record. It's all published in the newspaper. How can MLS control access to that information? Is it just that nobody else bothers to compile it from the county records?
👤ams6110🕑6y🔼0🗨️0
(Replying to PARENT post)
NAR was actually investigated by the federal government (FTC i think?), who concluded much the same, but lobbying buried the report and nothing came of it.
MLS's maintain power by strictly controlling access to information. they have the most up-to-date and the most detailed information about properties, buyers/sellers and sales transactions, among other things. this allows them to be the arbitors of deal flow, giving their members the advantage.
and this is the linchpin that props up the 6% commission rate. it's classic rent-seeking, since marketing costs have been dropping, as you mention. a truly competitive market would probably put the commission in the 1-2% range.
(i did my MBA thesis on disrupting the real estate industry)
edit: here's one, but i don't think it's the one i was thinking of: https://www.justice.gov/atr/competition-real-estate-brokerag...