MLS and the Competition Bureau

I have been quiet publicly about all the press we have been getting over the past months on the Competition Bureau and the Canadian Real Estate Association coming to a resolve over the user rights on the MLS system. I just received a memo today about the vote that is happening on October 24th to ratify CREA's negotiation with the Competition Bureau. Here's what is going to be different after the ratification: NOTHING!

The press and for sale-by-owner spokespersons have predicted and incorrectly reported that non-realtors will soon be able to list their homes on the MLS system and that the system has been broken. This is completely untrue.
The Competition Bureau has no problem with the Three Pillars of the Canadian MLS System... The Three Pillars had said: only a Realtor could place a listing on MLS; only a listing Realtor can act as an agent for the seller of the property and assist them during the entire time of the listing contract: and a listing Realtor must agree to pay the co-operating Realtor compensation that must be more than zero.

The second pillar is the only issue that has been under discussion and being clarified. The new agreement apparently specifies that CREA and Boards/ Associations cannot prevent or discriminate against “mere postings” or against members who offer mere postings. CREA has always maintained its rules do no such thing. The new agreement recognizes that seller contact information is limited to the member-to-member portion of an MLS® System and recognizes seller contact information will not be published on REALTOR.ca. Essentially the fine print is changed, but the fundamentals remain the same.

What happens from here? The discussion has brought forward awareness to a level of service between a full service realtor and selling privately... a licenced realtor who will "post" your house on MLS but give you no service or advice. The public and the market will decide whether there is a demand for this minimal MLS service.

A good analogy I have heard is about a cup of coffee... You can make it at home in your own coffee maker relatively cheaply. You can go to McDonald's or Tim Hortons and be served for a higher price, or for a higher price yet, you can go to Starbuck's and sit on a leather couch, use their wireless internet, and read their magazines. They all have their advantages and their price.

We're betting the house that most people still want service and good solid advice.

Here's an article in the Globe and Mail from October 15th about this.