Thursday, November 30, 2006

Discount MLS Brokers Are On The Ropes

Realtysellers Ltd of Toronto has declared that it can no longer operate in the current real estate sales climate produced by the CREA. Discount brokerages, such as Realtysellers have been accused of dumping homes into the MLS network. The CREA has no restricted access to the MLS network by stating that all homes must be inspected by the listings realtor before being shown on MLS. Realtysellers is fighting the new rules, and many other discount brokerages across Canada may be in for a fight to maintain there market.

Discount firms will sell a home, with full MLS coverage, for as little as $495. CREA is against this low budget approach because most of the over 80,000 members of the CREA work on commission. You know, 1.5% to 6% of the sale. On a $100,000 sale this CREA members are making off like thieves. Bottom line is that CREA is trying to maintain the monopoly it have over the real estate industry. Can't blame them really. Would you take a pay cut?

Check out the article in the Globe and Mail


Anonymous said...

Good post. Good article. Are there other websites that sell listings on the MLS?

Snap Up Real Estate said...

There are other sites that post on MLS. You have to be a licensed realtor to post on MLS though. Each large Canadian city has at least one discount broker.

Anonymous said...

Discount MLS services are here to stay. The FTC states that realtors cannot fix commissions. Noone has the right to make monopolies basically.

Go Free Trade !

Flat Fee MLS