Comments from a REALTOR®

"Agents pay good money to have their listings advertised on the MLS"

I am very disappointed by the complete misunderstanding of the function of the Multiple Listing Service (MLS) by people who lack adequate knowledge about the real estate business. It is even more disappointing when it comes from a Dept. of Justice employee, who has likely never worked full-time as a real estate agent, and therefore, does not understand the work involved, the general concepts and the complexities of the business.

First of all, the listings obtained by real estate agents are OWNED BY THE AGENT. This is what a contract is all about.

Secondly, the listings are also PRIVATE INFORMATION, until given the permission from the seller to disseminate their information to the public. Deciding which part of the public with which to share this information is also up to the seller and agent since it is private information that is ONLY MADE PUBLIC through the agent and client.

Let's not forget that agents pay big bucks for their listings. (Yes; WE pay upfront and the commission that some people may call "high fees" pay for all the expensive marketing (advertising, signs, fuel, hours of consultations, home buyer showings, lockboxes, keys, open houses, balloons, refreshments, the list goes on). Agents also have high dues -- real estate commissions owed to their brokers (often 50% of their 3% cut!), E&O insurance which is in the $800-$1,000 a year range, private health insurance which is expensive, Multiple Listing Service dues, NAR dues, and multiple other association dues. I shouldn't have to tell you that all of this adds up to a hefty bill. And did I mention the HOURS an agent works to make a dime?

The most important aspect of all of this is that the AGENTS PAY GOOD MONEY to have their listings advertised on the MLS. Since we are the ones paying for the service, we should have the right to "opt out" of having our listings displayed on every Tom, Dick and Harry's website, especially when these Tom, Dick and Harrys are most likely cutting many corners that actually HURT the client rather than help the client. Discount brokers, as you call them, most often do NOT HELP the clients -- these are the "quick buck" agents out there who don't care about the agents, but just want to make a quick buck by having the client do all of the work. Finding a home is about 5% of what a real estate's job is all about, and I can tell you that a good portion of these VOW agents are not doing what an agent is really there for -- to PROTECT their client by helping negotiate the best price, providing reliable comps, walking through the houses with them and looking for potential problems with the house (which they are obligated to point out), negotiating additional terms, and being helpful when problems arise.

My experience in real estate has taught me that the "discount agents" who look for ways to cut corners, are also cutting corners on their service -- very important corners that in the long run hurt the customers. It is sad that many people (including the general public) do not understand this situation. It is up to us as agents, who OWN THE LISTINGS, to make the determination on what is best for not only our own clients, but for the general public. Allowing every Tom, Dick and Harry to show listings on their virtual website (with their virtual -- "VULTURE-AL" service that is lacking) would be an absolute disaster not only for the loyal, hard-working and ethical agents out there, but also for the innocent clients who need protection from the "quick buck" agents who don't care about them.

Competition is alive and well in real estate. You don't have to doubt that.

Amy Leonard, REALTOR®
Dan Schwartz Realty
NAR member