The Competition Bureau takes on MLS (The Canadian Riple Listing Service – Forums – The Globe and Maileal Estate Association’s Mult

The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 8:15 AM EST

*Moderator*

Posts: 20
First: 12/1/2009
Last: 3/25/2010
On Monday Feb. 8, the federal Competition Bureau launched an aggressive attack on CREA, challenging its rules governing MLS and calling for a radical changes in how homes are sold in Canada.

“Our concern is that [CREA] are improperly and unlawfully leveraging [their control over MLS] in order to impose these restrictions and to deny competitive forces and to deny good old-fashioned market competition,” said Competition Commissioner Melanie Aitken. “This case is focused pure and simple: Let consumers have the choice, let agents have the opportunity to satisfy and serve those choices.”

Have you used MLS to buy or sell a home? What was your experience like? Are we due for a change in the way homes are bought and sold in Canada?

2

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 8:32 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
I Have bought and sold several properties over the past 13 years. I almost always have found the property I want on MLS, and then went from there, including my current home.

It almost seemed absurd that an agent who actually did very little other than opening the door to show the home would command a 5% commision on a 300K+ sale.

I have a friend who is a very good agent, and does a great job for those clients she serves, but for an informed buyer…..why shouldn’t one have the choice to pick and choose what the agent does for them?

3

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 9:14 AM EST

Posts: 1
First: 2/9/2010
Last: 2/9/2010
We have used MLS to search for a home. Although we also used a Realtor, the house we ended up buying, we found ourselves on MLS. We found that there is a lot of information outside of the physical properties of a home was provided by our Realtor. These include things such as whether a property is tenanted (some sellers hide this information), and most importantly the historical sale prices for the area. It is my feeling that the MLS website is designed to only provide a portion of information so that Buyers and Sellers will use a Realtor.

4

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 9:47 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
It seemed like every realtor we’ve ever dealt with was a passive entity, jumping only when we pointed them at something, pushing us to accept an offer too quickly in order to reduce their workload and not following through on promises given during the sales pitch to be the listing agent.

This is a flawed business left over from the age of dinosaurs, where the participants are complacent, where the MLS listings could provide so much more information to a prospective purchaser but inexplicably stops at minimal data and misleading low-res images.

There is no readily available method of dealing with less than perfectly knowledgeable agents, not to mention incompetent home inspectors. We dread the day we have to go through the process again.

5

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 9:55 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
We recently listed a house in Calgary. The only thing the agent did to market our house was to put it on MLS. It did sell, but it had nothing to do with the realtors ability to negotiate or widely market the house. The reason it sold was the price, we listed it slightly lower than comparables.

So, for the approx 12 hours this “professional” agent invested in listing our house this person cost me 12,000. What a scam they have going, no wonder they do want anyone to break into their monopoly on selling real estate.

6

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:01 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
My wife and I have sold two houses in the past year (one was a rental property and the other was our personal home). For the rental property we listed through an agent and was charge 4.5% to both agents + GST (soon to be higher because of HST). The selling agent did very little and got paid very well for his efforts.

Our our own home we tried to get the selling agent to reduce her commission. She was willing to come down but not enough. We had just purchased a house through her – which she made her full 2.5%. We shopped around looking for more choices, which are far a few. I lucked out when I came across a broker in Burlington who offered more choices (http://www.portcullisrealty.com/). The job he did was better then what we paid the previous selling agent and he posted the house on MLS for 1.75% commission instead of the typical 2.5% and we paid him a flat fee. In the end we saved just over $4,000.00. I had many Realtors tell me that the house would never sell if I listed for less than the typical 2.5% – we sold our home in three weeks and had two offers and got 97% of our asking price.

7

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:01 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
I never knew why I have to give away 6% of the value of my house for someone uploading MY PICTURES on a website, imitating an open house, and then demanding to consider low ball offers (the dilemma has been discussed in Freakonomics – the incentive structure makes it unprofitable for a realtor to exercise their fiduciary duty, e.g. maximize selling price).

Why is only a-la-carte service available?

8

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:04 AM EST on theglobeandmail.com

THX
Posts: 1
First: 2/9/2010
Last: 2/9/2010
I was was so taken aback by MLS 5% nonsense that I sold my house privately using local home-for-sale-by-owner service. Sure it was an effort but 5% stayed with me.

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Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:10 AM EST on theglobeandmail.com

Posts: 1
First: 2/9/2010
Last: 2/9/2010
Knowledge is power and the CREA has done its best to restrict access to MLS as well as only giving incomplete information. It’s time for big changes and an end to outrageous commissions for minimal work. Yes, some homes require a great deal of effort to sell. That’s often because the owners are unrealistic about the price. Perhaps now, time wasters and tire kickers will be told to get lost.

10

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:12 AM EST

ALE
Posts: 1
First: 2/9/2010
Last: 2/9/2010
I have just purchased a new home. It seems that CREA is not satisfied with enforcing the Seller’s Listing Agreement, but now they want to force everyone who uses the MLS system/ Agent to sign a “Buyers Representation Agreement”. They are enforcing this by giving a fine to any MLS agent who sells a home, without the Buyer signing this “Buyers Representation Agreement”. This is outrageous! It puts the onus on the MLS Agent to enforce CREA’s demand. The Buyer who signs this agreement, is bound to that specific MLS Agent for the term of the agreement, including an additional “holdover period” of 30 to 90 days. Not only is the Buyer bound, under contract, but their estate, assigns and family are also bound. The Buyer is not only bound to the purchase of a “selected” property in a “selected” location, but to any rental or lease in such location. CREA has become too greedy and is acting like a dictator. They want to control the Buyer/Sellers Market. Very anti-competative.

11

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:15 AM EST on theglobeandmail.com

Posts: 2
First: 2/9/2010
Last: 2/15/2010
My experience is that I found most real estate agents to be totally lacking in most professional skills such as integrity, judgement, ability to properly qualify a buyer and being clueless as to value a property…I’d rather deal with a buyer or seller on my own with my lawyer than thru a useless intermediary….

12

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:19 AM EST on theglobeandmail.com

Posts: 2
First: 2/9/2010
Last: 3/24/2010
To call MLS a monopoly is not a true statement. There is nothing stopping people from advertising in their local newspapers, kijiji, putting out a lawn sign etc. I bet there are more options available to sell homes than to make trades on stock exchanges, or even more options than finding a good web browser. I have sold properties privately and through MLS…each option was good for the property sold. It is communism to force open a privately funded and maintained system to the public…Now, why doenst the competition bureau open up the wireless business, cable networks, radio stations, post office etc….these are monopolies of oligopolies at best

13

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:21 AM EST on theglobeandmail.com

*Moderator*

Posts: 20
First: 12/1/2009
Last: 3/25/2010
We’re going to hold a live discussion on this topic today.
I’ll let you know the time soon!

14

Re: The Competition Bureau takes on MLS (The Canadian Real Estate Association’s Multiple Listing Service)

posted at 2/9/2010 10:22 AM EST on theglobeandmail.com

Posts: 2
First: 2/9/2010
Last: 2/11/2010
The key is that CREA maintains a MONOPOLY on real estate transactions in Canada and this needs to end. As many people h

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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