Adam Mack, the former state representative from Standish turned full-time developer, is one of five citizen sponsors of a petition asking the state to include the public in the Multiple Listing Service (MLS), an online advertising vehicle used exclusively by real estate brokers.
“Right now, the listing service is run by the Maine Association of Realtors,” Mack said. “If you’re an average guy, you can’t list your house on Multiple Listing Service without a realtor. You have to pay a six percent commission, and that’s where MLS would help the little guy.”
Mack, who is in the process of selling a house in Standish, said he would have a much easier time advertising the house on a database like MLS, and contends that the real estate business has monopolized the system to spite competition.
“There are definitely entry barriers into the real estate business,” he said. “Maine is unique because we have more business license requirements than anywhere else. If you make it harder to get into the profession, you keep competition out. And they’ve monopolized MLS so it’s necessary to hire a broker.”
Some realtors contend that although MLS would be beneficial to the public if it were available to them without having to hire a broker, it shouldn’t be necessary to legislate it.
Tom Noonan, a broker from Allied Real Estate, said he is troubled that citizens and legislators are forcing the issue.
“If there were a true need for this, the market would have developed it by now,” he said. “There’s MLS, but then there’s a whole bunch of other ways to list your property. Why just MLS?”
The proponents of this legislation, according to Mack, which is slated to be put to voters in November 2007, are aiming in part to chip away at “commissions and fees” involved with hiring realtors.
But, in an effort to compensate private sellers who cannot advertise their houses on MLS without first hiring a broker in the meantime, Lawrence Kelly, the owner of Maine Realty Group in Portland, is in the habit of rebating up to 40 percent of a home’s sales price.
“I guess it’s a way of giving back. I’m sure (opening MLS to private sellers) would undermine the whole company from a selfish standpoint, but it would be good for the people,” Kelly admitted.
Kelly said he is confident that if the Multiple Listing Service were open to the public, competent real estate agents wouldn’t suffer.
“Good brokers provide a lot more services for people than just MLS,” he said. “It’s a brutal world out there in real estate. If people were able to put listings on MLS it would definitely create more competition, but it wouldn’t really affect me. Bottom line, I’m going to survive.”
In fact, Mack contends that if an open listing service was legislated, it would straighten out the real estate business.
“Good brokers who provide good services will continue to flourish. Marginal brokers may be hurt, but at least it will open up the process,” he said.
Mack’s interest in this issue began when Lewiston City Councilman Stazros Mendros approached him about the petition.
“We need to get the signatures and successfully complete the petition process,” Mendros said. “Hopefully that’s what’s going to happen. Ultimately, it’s good for consumers.”
Mendros suggested an open listing service is much like the stock exchange, which is open to the public without having to hire brokers.
“This is the 21st century. Things change… times change, and it’s time to move forward. This will be one centralized location where people can find homes,” he said.
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