Nontraditional real estate brokers and cutting-edge websites are providing consumers with alternatives to the 6% Realtor®. This blog - nominated as a 2007 Finalist for Inman News' "Most Innovative Blog" - covers obstacles encountered by these new competitors.
Wednesday, May 19, 2010
DOJ Investigation of Hamptons Brokerages
Yesterday the New York Post reported on an inquiry being conducted by the U.S. Department of Justice's Antitrust Division involving Hamptons real estate brokerages.
Here's subsequent coverage on the New York Times' DealBook blog.
Brokers in the Hamptons want to be able to compete, not for the agent's fee, but for the MLS incentive to the buyer that in today's environment, goes automatically to the buyer's agent working with out a valid written agency agreement. If broker use the forms they have in their possession to establish a valid agency relationship, the one that explains how to dispose of the MLS incentive, this problem would not have a chance to occur. They are arguing about a chance to get a piece of the action, not the agent's fee. Remember that Agents claim that the buyer does not have to pay a fee to his agent, the seller's agent does, which is never the case.
Brokers in the Hamptons want to be able to compete, not for the agent's fee, but for the MLS incentive to the buyer that in today's environment, goes automatically to the buyer's agent working with out a valid written agency agreement.
ReplyDeleteIf broker use the forms they have in their possession to establish a valid agency relationship, the one that explains how to dispose of the MLS incentive, this problem would not have a chance to occur.
They are arguing about a chance to get a piece of the action, not the agent's fee. Remember that Agents claim that the buyer does not have to pay a fee to his agent, the seller's agent does, which is never the case.
Realty Czar