The real estate industry has been under siege since I began selling in 1987.
The first big change that I recall was the advent of the Buyer Agency Agreement. This contract allowed buyers to select a Realtor of their choice to represent them in a transaction. It sounds simple enough by today's standards but when it was first introduced, the industry was freaking out.
In "the old days" before the Buyer Agency Agreement, the customer "was forced" to use the first agent who introduced them to the property, either at an open house or by way of a showing. Therefore, it they happened into an open house and the Realtor was sitting on their duff watching a baseball game, that was the Realtor who would be entitled to the buyer's end of the commission split and that was the agent who was most likely to negotiate on their behalf. Not exactly confidence inspiring stuff is it?
This stupid rule was worshiped by many within our industry. Now that it's gone, there's no doubt we're all much better off. The consumer now interviews and shops for a good Realtor much like they do when they select a lawyer and they are much better represented as a result. Also, the Realtors had to pull up their straps and become much better at their trade. If they wanted to succeed in this highly competitive environment, they had to offer added value to their customers. Many of us did just that and again, the consumer wins.
The other change that caused much distress within the industry was the internet of all things. Many feared and pronounced to their spouses and their creditors that "the sky is about to fall - we won't be needed any more". Of course, this proved to be utter nonsense.
There's a new fox in the real estate hen house and I can hear the frantic clucking within the industry as I write this. Again, many of my fellow Realtors are panicking at the potential "opening up" of the MLS. Read about it here.
I'm sure they worry about the consequences of being forced to give away the system (Multiple Listing System) that we've all paid dearly for these past many years. Relax everyone. It's been proved repeatedly that a little competition has only elevated our business to higher levels and this will no doubt be true again.
Those who use discount Brokerages already have access to the market they so yearn for. If you're a seller who uses a discount brokerage or if you're trying to sell independently, you can already reach the customers looking for a house. It's called the internet.
This is not to say there won't be dramatic changes in how the consumer is represented, at least some consumers. There will be much uncertainty within some of the industry in the months to come. However, for those who maintain the status quo, they will continue to be served by the most trained and highly skilled Realtors in North America and will be assured that they will get top dollar for their house, with virtually no risk on their part.
Looking for a dose of irony to start your day? Check out page B3 of The Toronto Star, November 3rd... top of the page is the headline "Toronto home prices to keep rising" and at the bottom, the headline "Realtors ready to yield ground on fees".
No one doubts that the MLS, in it's present form, has served home owners well and few will want to change that. Good MLS yields good sale prices. It's a simple as that.