BrokerageIndustry News

Taking on the real estate enemies

Part 3: Real estate brokers under siege

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Editor's note: Real estate brokers are feeling pressure on profits from all sides. Business and insurance costs are up, top-producers want higher commission splits and new technology, and new competition in the brokerage space is lowering the average commission on a home sale. In this three-part series, we dive into the economics of real estate brokerage, find out what brokers are thinking and what they're doing to protect their stake. (See Part 1: Profit margins up for brokers; worries remain and Part 2: Liability costs, technology, discounted commissions.) The Cleveland Area Board of Realtors is suing the Northern Ohio Regional Multiple Listing Service over the payment of fees to real estate brokers from MLS revenues. The dispute is over data ownership and who should profit from MLS data licensing deals. After pressure from big brokers, the NORMLS board previously voted to give 90 percent of profits from data mining contracts with the Real Estate Business Information Group to...