MLS System Changes Could Affect the Real Estate Market

Towards the late 1800s, the MLS (Multiple Listing Service) System was born. The MLS is a mutual understanding between the CREA (Canadian Real Estate Association) and the NAR (National Association of Realtors). When one broker is offered the opportunity to sell a property, he then notifies other realtors involved in the MLS System to market the home as well. With their combined efforts, the property sells much quicker, and those involved receive a commission. The new age of marketing and advertising has created somewhat of a rift between the NAR and the CREA. There has been much debate as to how efficient the MLS System currently is in the real estate market.

Many property sellers and buyers can now locate and sell homes right on the internet. This cuts out the need for the larger publicity that the MLS System offers, as the real estate is shown to several prospective buyers over the internet for little to no extra cost although many buyers browsing for Mississauga homes may still search for Mississauga MLS listings in Google. It is for this reason that the board directors of CREA and NAR have been meeting frequently to evaluate alternative measures that can be put in place to prevent the MLS System from becoming obsolete. The MLS System is not without its own advantages, however, as it still manages to be very efficient. Brokers have client bases and know how to negotiate with prospective buyers, and it would be advisable to put your real estate in their hands rather than your own. Nonetheless, the incredible amount of information posted on the internet is creating a far more educated home seller market.

It is general consensus amongst members from both the NRA and the CREA that the MLS should be accessible by more agents. This would allow the MLS System to be used by real estate agents all over the country, and therefore property sellers won't need to seek out a NAR or CREA member, which can often deter potential customers due to the extra hassle. Members of the MLS System recognize that the real estate market is changing, and that they are going to need to accept smaller commissions for their services. If the MLS was to become extinct, then the real estate professionals involved would end up without a source of revenue.

The main concern with the MLS System is that its members charge surplus fees to sellers for its services. These extra fees are often unwarranted and serve no purpose towards funding the actual service, but instead only serve to better finance other members of the MLS system. Eventually the public became aware of this, and this only deterred them for hiring MLS realtors to sell their homes due to the unwarranted costs. This increased pressure has caused the CREA to face many critics, and now reforms seem to be inevitable. The modifications now being proposed revolve around options for the consumer. Consumers will be able to choose exactly which services they require from the MLS System, which will cut expenses and not allow MLS members to demand unwarranted fees.