From Reuters:
The National Association of Realtors will open its vast listing of homes for
sale to cheaper, Internet-based brokers in an agreement to settle a federal
lawsuit, the government said in a statement on Tuesday.
The change could save those who buy or sell a home thousands of dollars since commissions could drop as much as 1 percent of the selling price, said Deborah Garza, the deputy assistant attorney general for antitrust, in a telephone briefing with reporters.
The settlement will lead to "more choice, better service and lower commission rates," Garza added.
Essentially the deal requires the 800 multiple listings services associated with the National Association of Realtors for various local markets to give access to Internet-based competitors, the government said.
This is a great thing for real estate investors who have been looking to use the MLS services to sell their homes, but have not wanted to pay a full real estate commission to do it.
We’ve seen it happen in other businesses: once the internet gets a toehold in a commissioned industry, prices for the consumer tend to plummet. Look at the rates consumers pay to book travel or buy and sell stocks; each has dropped dramatically as the internet has become a more popular way to book trips or invest.
More and more business is conducted online, and the first place most potential purchasers go to look for a new home is the internet. By opening up the MLS listings to online brokers, we can expect greater innovation which will just benefit the real estate investor. That is, by making the purchasing process cheaper and more simple for that potential buyer, investors stand to gain.
How long before we see realestate.google.com? You be the judge.
Photo: Computer city #1: Downtown, originally uploaded by Rune T.