SAINT JOHN – One local man who works in the real estate industry says the status quo is fine with him when it comes to the Multiple Listing Service.
The Canadian Real Estate Association, which represents about 98,000 realtors, has approved changes to the listing service that would allow homeowners to simply pay for a property to be listed on the site.
Clay Rideout of Property Guys, which is a flat-fee-based service that connects home sellers and buyers, said things are already changing. The Multiple Listing Service, he said, is already being challenged by independent websites that list homes for sale. He contends many realtors are using such websites.
“If MLS is working so good, why are they advertising on Kijiji?” Rideout said in reference to the online site where items are sold.
The MLS system is still Canada’s premier stop for those searching to buy or sell a home. If the listing service is changed and private sellers are allowed to list their properties, he believes it will hurt the listing service.
“It’s impossible to fathom that those big players are going to stick around if the playground changes,” he said.
The federal Competition Bureau has challenged the proposed changes. The Canadian Real Estate Association, which is responsible for the Multiple Listing Service, will appear before the bureau’s tribunal to defend the changes.
Alyson Fair, spokeswoman for the Canadian Real Estate Association, said the organization has received legal advice that it should not comment. The association’s position, she said, will be contained in its official response to the Competition Bureau, which will be filed today.
“The whole system is a monopoly,” Rideout said of the Multiple Listing Service.
If the MLS system becomes more open, Rideout expects the business of buying and selling homes to change. He expects real estate commissions to fall and more realtors to become what he calls buyer agents.
“It’s like planting a garden,” he said. “Do you want to walk by and drop seeds in, or do you weed all summer in the heat and the flies and do the harvest?”
Listing a home, he said, guarantees a commission without the work of showing a home. Within two years, he expects 40 per cent of people to sell their homes privately.
Jason Stephen, president of the Saint John Real Estate Board, said the national association instructed its members not to comment on the proposed changes. He did say, however, realtors are still key because of their knowledge and the services they offer.
“Different people provide different business models,” Stephen said of his members.
The real estate market, he said, has changed a lot in 10 years.
“Change is good and certainly the Internet and different forms of technology have changed people and people want quicker response time,” Stephen said. “So change is always going to happen no matter what business you’re in.”
March 26, 2010
source: telegraphjournal.canadaeast.com