Oct 2010 4

Changes in MLS®: What Does It Mean For You

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Time For Change by David Daniels
Time For Change
by David Daniels

As we have informed you in the previous article, big change of rules on MLS? and agent-client relation is on the way. What are the implications for clients, but also for realtors?

Shop Services 'A La Carte'

The core of the change is that it will enable you to buy only certain services from an agent, instead of the traditional complex package. You want just to list your property in MLS?? No problem. You wish 'For Sale' sign on your lawn. Here you go. Naturally, the full package will be still available.

How Much will It cost?

There will be no centralized price lists. The basic idea of the new regulation is to let the agents compete. There are already some budget services, which allow you to list you property for slightly more than $100.

On the other hand, do not expect huge reductions in commissions. The main job of a REALTOR? is to bring traffic to your home. That means complex marketing services. Most of the clients will not risk legal risk when selling or buying a $300 000+ property, so the demand for legal assistance will probably keep steady. Therefore, the competition among realtors may slightly rise, but since the biggest part of market asks for complex services anyway, the rates will hardly change significantly. That's true especially in BC, because it BC already permits alternative sales models.

What does It Mean For Realtors?

You can guess from previous paragraphs. Agents with good networks and flow of clientele will have to change their strategy only slightly. On the other hand, there is certain niche of small and part time realtors who are active on small slow markets, who may find themselves in direct competition with specialized discounters, who can grab the budget clientele.

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