On Your Side
Fighting the 6% Real Estate CommissionDavid BarrySan Francisco
(MONEY Magazine) – Americans pay $60 billion a year to realtors. Antitrust lawyer David Barry says that's too much and has a plan to cut commissions in half. This year Barry started a nonprofit whose aim is to allow anyone selling a house to list it on an alternative multiple-listing service, or MLS, that, unlike the National Association of Realtors' coveted database of homes for sale, would be open to everyone. Now only brokers can post listings. Once their stranglehold is loosened, Barry says, realtors will have a hard time justifying a 6% commission. These days most people use agents to get their house on the MLS, he says, reducing a realtor's job to glorified data entry. With an open MLS, brokers would have to sell themselves on their ability to find sellers buyers, and buyers homes. His dream: fewer agents charging lower fees (because no one would pay 6%) but making more money. The first stop for Barry's Open MLS Institute is referendum-friendly Maine, where he has gathered 10,000 signatures. "He's trying to raise the ethical standards of our business," says Michael Davin, a realtor in California. "That's noble stuff." |
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