What is the MLS?

MLS stands for Multiple Listing Service. It is a database of homes for sale that is used by real estate agents. When a real estate agent lists a home for sale, they add it to the MLS database. This allows other real estate agents to see the listing and show it to their clients.

The MLS is a valuable tool for both buyers and sellers. Buyers can use the MLS to find homes that meet their needs and budget. Sellers can use the MLS to reach a wider audience and get their home sold quickly.

The MLS is not available to the general public. Only real estate agents who are members of the MLS can access the database. This is to protect the privacy of sellers and to ensure that only qualified agents have access to the information.

If you are interested in buying or selling a home, you should contact a real estate agent. They will be able to help you access the MLS and find the perfect home for you.

Here are some of the benefits of using the MLS:

  • Reach a wider audience. When you list your home on the MLS, it will be seen by a wider audience of potential buyers. This can help you sell your home more quickly.
  • Get more exposure. The MLS is a powerful marketing tool that can help you get more exposure for your home. This can lead to more offers and a higher selling price.
  • Get professional help. Real estate agents who are members of the MLS have access to a wealth of information and resources. They can help you price your home competitively, market your home effectively, and negotiate with buyers.

If you are considering buying or selling a home, you should contact a real estate agent who is a member of the MLS. They can help you get the best possible deal on your home.

$2,400,000 Home, Offering $1 in Commission

For the first time ever we closed today on a $2,400,000 Kailua home that was offering only $1, yes ONE DOLLAR commission.

The MLS does not allow a seller to negotiate the commission down, but they do allow the seller to pay Realtors more commission (isn’t that nice of them LOL), so putting in $1 essentially made the commission negotiable, and a deal was reached that everyone was happy with.

So now if your Realtor tells you commission is not negotiable you can let them know it can be negotiated up, just not down, and it is possible to sell a home offering $1 commission, which essentially sends a message that commission is negotiable.

The Buyer’s Agent Commission Now Shows On OahuRE.com

OahuRE.com is now one of the first sites on Oahu to show the buyer’s agent commission for all listings as we just got permission today to do so. Unfortunately, it is non-negotiable still, but at least buyers can see how much their agent is getting paid.

The buyer’s agent commission is paid for by the seller, but the price of the property is raised so the seller can pay the buyer’s agent. It is a cost to the buyer because they pay a higher price for the property to cover their agent’s commission.

For the property in the image, the buyer’s agent commission is $134,700.

OahuRE.com rebates 20% of our commission back to the buyer to help them cover their closing costs.

Change does not come easily 😂 at the Honolulu Board of Realtors.

I have been trying since April of 2021 😡to get them to remove the rule that the buyer’s agent commission is NOT negotiable.

In May 2021 they said they would reach out to the National Association of Realtors to investigate this, but I still have no resolution. 😯

I have not given up and will continue to pursue this even if it takes years. Eventually, I am confident they will do the right thing and make it negotiable. 👏👍🤘

Buyer’s Agent Commission

I am waiting on the Board of Realtors to allow me to show the buyer’s agent commission percentage on all listings.

However, they continue to ignore the National Association of Realtors guidelines which say the buyer’s agent commission should be negotiable.

Maybe once it is displayed consumers will start pressuring Realtors to negotiate it so they can change that rule.

Is A Flat Fee Buyer’s Agent Commission Coming Soon?

Have you ever heard of a Flat Fee Buyer’s Agent Commission? Maybe soon you will.

There are at least 3 big class-action lawsuits against Realtors claiming the fixed 2.5% buyer’s agent commission should not be paid for by the seller but instead the buyer should pay their own agent.

Their argument is this would allow buyers to negotiate the commission, the same way sellers have options, such as our $3,500 Flat Fee.

It would be a huge change for Real Estate buying and selling if sellers are no longer forced to pay a 2.5% commission to a buyer’s agent.

We will see how this turns out.

Hiding Real Estate Information From The Public

A Realtor was so upset that I displayed one photo for expired listings that they reported my website yesterday to the Honolulu Board of Realtors.

Per their rules, I have to hide expired and withdrawn listing data from the public unless they sign up with me to see it.

I was hiding the detail page with all the photos and all the details, but I did show one photo and some summary information in my search results in case it might interest someone, then they could sign up to see everything.

I don’t get why Realtors are so adamant about hiding data from buyers and sellers.

It does not benefit them in any way in my opinion.

I now have 48 hours to remove this data from public view.

The National Association of Realtors should allow buyers and sellers to see all listings without restrictions.

This is the largest purchase and sale one will make in their lifetime.

It should be against the law to hide listing data that might help consumers buy and sell a home.

Posted in MLS

Why Realtors Want To Keep The Buyer’s Agent Commission Higher

I read an article in a Real Estate publication that was titled “6 reasons NAR’s commission rules work”. It was an article that backs up why commissions should stay the same.

There is a lawsuit that contends that buyers should pay their own agent commission. Currently, buyer’s agents are paid a fixed commission from the seller.

The argument is this would allow more competition on the buyer’s agent commission.

For example, on the seller’s commission, there are many options. We offer a $3,500 Flat Fee option, and many sellers pay an agent 2.5% to 3%. However, on the buyer’s side, there are no options. The commission is fixed, normally at 2.5% to 3%. There is no opportunity for a flat fee commission option, or to negotiate the commission based on the amount of work required. If the seller offers anything less than the going commission rate Realtors might not show their home to buyers.

I noticed most Realtors agreed with everything said, but it left me perplexed as I did not agree or understand any of the points made.

The way I see it, Realtors like their fixed 2.5% commission on the buyer’s agent side. They don’t want buyers asking them to reduce the commission, or asking them if they will offer a flat fee. They don’t want a free and open market where buyers have different levels of service and different fees based on the service they get.

I get that. If I am a Realtor representing a buyer purchasing a $2 million property, I am getting $50,000 in commission. Why would I want a buyer asking me if I would do it for a $3,500 Flat Fee instead, or perhaps negotiate the commission down to $5,000 or $10,000?

However, Realtors have to realize from the buyer’s perspective they like the idea of saving $40,000+ on their purchase. If the seller does not have to pay the buyer’s agent $50,000, they can sell for $50,000 less. If the buyer can then pay a $3,500 Flat Fee to their agent, the now saved $50,000 less $3,500 which equals $46,500.

The article tried to convey things like lenders won’t lend on buyer’s agent commissions if paid directly, even though they lend on buyer’s agent commissions now. They said it will be the end of the MLS and would prevent a free and open market, lol. These two are really funny because the MLS makes no money on buyer’s agent commissions, so the MLS will go on regardless, and for them to say a free and open market is forcing sellers to pay 2.5% commission is very strange indeed.

Anyway, it will be very interesting to see if this lawsuit changes anything.

National Association of Realtors Please Stop Hiding Listings

Hey, National Association of Realtors.

Please stop the MLSs from hiding Sold, Withdrawn, and Expired listings.

This is information the buyers and sellers need to know to decide what is the right price for a property.

Buyers can’t analyze comparables with no sold, withdrawn, and expired listings available for them to see.

They are being forced to go to a Realtor for that information.

I know you think hiding information from the public benefits Realtors, but it really does not, it just makes it more difficult for people to buy and sell homes, and that is not a benefit for Realtors.

Posted in MLS