I Have Met Evil - And I Go Into Battle Without Fear...Well

It's not really fear, but more a really tired and foreboding premonition of the hassles I'm about to endure. You see, my rather remote vacation home market in Taos, Northern NM, is well behind the rest of the real estate world as regards encroachment on our territory and commission base. Sure, we're off 40+% in gross sales dollars, and we've seen commission negotiations, with cuts even by the franchises.

But, for the first time, I've come face-to-face with the "MLS Only" monster, and it comes from Florida. A company is now listing in this area with no services beyond the MLS. I am really pretty unconcerned by these types of things, and about competition in general. I didn't even know they were around until a web buyer prospect called me on the phone about a $1.3 million property with a pretty poor MLS listing presentation. There were only four photos, none of the interior, of a brand new home on five acres with a pond and guest house/studio.

In defense of the listing broker, the seller, who I called directly because that's what the listing said to do, told me that he had only given them four photos. And he also told me he just hadn't had time to get a survey plat or floor plan together. We won't dwell on the fact that he's the builder as well as the owner/seller. However, we had a nice conversation, and he promised more details, a floor plan and a plat very soon. The buyer is waiting for me to get the photos, even if I have to go out and take them.

Now, this Florida company has paid a signup fee of $250 to get into our MLS, plus a $64.50/month MLS fee to stay around. So, they will spend $1024 for the first year for the ability to place these MLS only listings, at $475 each, according to this seller. So, they don't go cash flow positive until they have three of them. I have no idea, but rumor says they had three, but lost one to a regular broker. However, they keep their fee, so if this is true, they are a few hundred dollars in the black, until next year's renewal anyway.

I'll keep you posted if I continue to work this buyer prospect with this listing. If you want to know why I seem a bit less than enthusiastic, the buyers are a pair of Realtors out of California. So, I still have to see what they expect me to give away in commission for the privilege of servicing their needs.