Info Con: Information control keeps consumer commission costs too high.:
This view of the industry believes that the basic Mulitple Listing Services as set up by real estate associations stifle competition because they control the listing information. This, in their opinion, allows real estate brokers to charge higher commissions because the information about listed properties isn't available on the open market for consumers to locate on their own.
Info Pro: Listings are widely advertised on the internet at multiple sites.:
Sites like Realtor.com, Trulia.com, Googlebase, Yahoo Real Estate and others are advertising the bulk, if not all, of the listings that are in the Multiple Listing Services. The consumer can find these listings at any time by searching these sites. Industry proponents use these sites as examples of the transparency of information in the real estate market.
Competitive Con: Assoc. rules limit competition and stifle new business models.:
Opponents of the structure of the real estate associations and their rules for members believe that these rules foster a status quo of method that makes it difficult to impossible for new and innovative pricing and business models to succeed. In other words, the rules foster the continued two-agent full service commission structures while discouraging other models like flat-fee listings or fee-for-services.
Competitive Pro: Competition is healthy and business models abound.:
The proponents of the industry status quo state that competition is fierce and that there are examples of every pricing and business model operating inside the current associations. They point out the low barriers to entry and the high attrition rates of new agents bear out the healthy competition in the business.
Minimum Services Con: Laws to establish minimum services are bad for consumers.:
Industry critics are fighting laws that have been proposed in some states to establish minimum services that a real estate licensee can provide to the consumer. These industry oponents state that these laws are designed to create a floor for commission structures by making some level of "full service" mandatory.
Minimum Services Pro: Establishing a standard for service helps consumers.:
Industry proponents view these laws as necessary to protect consumers. It is believed that there are those who are abusing consumers by advertising low rates to list their properties and not disclosing the true nature of their limited services. The consumer believes that they will be advised during the negotiation process and/or helped with the closing process which are services they actually are not going to receive.
