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Internet-Based Realtors Win Monster Settlement
coondoggie writes "Until today, most Internet-based real-estate brokers were considered second-class citizens, and their clients were left in the cold. But perhaps that will change with today's news that the Department of Justice has reached a proposed settlement with the National Association of Realtors that requires NAR to let Internet-based residential real estate brokers compete with traditional brokers. NAR has agreed to be bound by a 10-year settlement, under whose terms NAR will repeal its anticompetitive policies and require affiliated multiple listing services to repeal their rules that were based on these policies." Here's the whole settlement document on the DoJ's site.
Wake me when someone acts against real estate agents who are supposed to be representing the buyers stop getting commissions paid by the sellers. This is an obvious and massive conflict of interest.
I saw an item on TV where agents were saying that sellers wanted to place their houses with agents on the basis that the buyer's agent got a larger commission. Now, why would they do that if they did not think it would influence the AGENT of the buyers? If the seller can influence the buyer's agent, there is something deeply wrong.
Can someone explain to me how this obvious conflict of interest has persisted for so long?
And before anyone tells me that a realtor is necessary -- I bought a house in the US (for several hundred thousand dollars) with no agents involved on either side of the deal.
The real "Libtards" are the Libertarians!
Unless you've gone through the hassle of buying (or attempted to buy) a house this wouldn't be very clear.
Right now it is almost impossible to purchase a house using internet based tools. Every housing market is controlled by the local realtors and they are VERY territorial. This means extra calls to look at houses if you aren't using a local realtor, extra time spent researching because tools are intentionally crippled for non-local agents, houses that aren't "keyed" properly for non-local agents (meaning even if you've done your research, then had someone call on the house, you still might not be able to get in and see it).
This makes it harder to find (and buy) a house if you aren't working with a local agent. Knowledge is power, and with current tools & rules the local agents wield a lot of power over non-local (internet) based ones.
Time will tell if this ruling bears fruit, but it is definitely good news for any nerd looking to buy a house in the future.