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Realtors, Regulators Face Off Over Online
Home Listings |
By John Handley
Chicago Tribune
RISMEDIA, May 10 – (KRT) – A battle appears to be heating up between
Realtors, who want to be able to block access to listings via the
Internet, and the U.S. Justice Department, which regards the practice as
anti-competitive.
Consumers shopping for property as well as sellers have major stakes in
the issue.
The National Association of Realtors, the 1.2 million-member trade
association of full-service agents, wants to allow brokers to limit
listings on the Internet and therefore access to those listings by
online brokers, who often charge less than the traditional full-service
6 percent commission.
"The Antitrust Division is investigating the potential competitive
impact of certain rules involving the display of residential real estate
data over the Internet," Gina Talamona, a Justice Department
spokeswoman, said Monday.
The NAR plans to implement its new rules via a change in its bylaws that
would go into effect in July.
The Justice Department also has sent warnings to state legislatures this
spring not to pass bills that would squeeze out low-cost brokers by
changing requirements for holding a brokerage license. And Justice has
sued a real estate regulatory agency in Kentucky for prohibiting rebates
on sales commissions.
"The antitrust question is whether the NAR's policy keeps real estate
commissions higher," said Steve Bochenek, legal counsel for the Illinois
Association of Realtors.
NAR, Bochenek said, contends that its members have the right to protect
their property, the listings. "That may have to be decided in court," he
said.
One online firm, Zip Realty, promises to cut commissions up to 25
percent by relying on an Internet-based approach.
"It's all about the interest of consumers," said Pat Lashinsky, vice
president for marketing at the California-based discount brokerage,
which does business in Illinois. "I'm glad the Justice Department is
stepping in to represent the consumer."
"NAR wants to allow brokers to pick and choose which listings will go on
the Internet. But consumers want to see all homes on one site,"
Lashinsky said Monday.
"Sellers want their home to be seen by the most potential buyers in
order to get most for their home," Lashinsky continued. "Consumers lose
if the listing is not shown everywhere. I think consumers will take an
interest in this NAR bylaws change."
Real estate listings used to be closely guarded by agents, who had a
near-monopoly in uniting buyer and seller.
The Internet promised to make house hunting easier and faster. That has
happened. The NAR reports that more than 70 percent of buyers use the
Internet in their home search.
Ed Watts, an agent at Prairie Shore Properties in Wilmette, said he can
flag a listing so that it does not go on the Internet. "But I don't know
why any agent would not want a listing on the Internet. There's no such
thing as bad exposure."
But some brokers, especially smaller ones who don't want to risk losing
part of the commission on a property, want to protect their listings.
One issue is the usual commission charged by traditional brokers,
usually 6 percent of the sales price.
"We're not against discounting. This is America. It's commerce," said
Judy Gardner, president of her own real estate firm in Plainfield.
"I'm the queen of tech, but real estate sales require a high degree of
the human factor in negotiating. Online discounters say they are going
to help you sell your house. But most people need a guide, a
professional on their side," Gardner said.
"As far as online listings, the genie is out of the box. Most listing
information already is out there on Realtor.com," Gardner said.
Marie Fitzpatrick said she and her husband, Brian, used the Internet
extensively in a home search in Chicago. "Everyone should do it. You can
access it 24/7. We found that 99 percent of listings are available on
the Internet, but sometimes there is a 24- to 48-hour lag in the time
the broker took the listing before it was posted on the Internet."
Copyright © 2005, Chicago Tribune
Distributed by Knight Ridder/Tribune Business News. |
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