OpinionIndustry News

The end of MLS as we know it

Guest perspective: Let's get rid of interbroker compensation (Part 1 of 3)

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Editor's note: This is part one of a three-part series discussing important issues organized real estate is facing and possible strategies for resolving them. The author argues that interbroker compensation should be done away with and in part one explains why this should be done right away. Part two will discuss how the world will work without interbroker compensation, and part three will look at the future of the MLS in that world. (Read Part 2 and Part 3.) "It's the end of the world as we know it, and I feel fine." - R.E.M. The real estate industry now operates multiple listing services that not only draw attacks for suppressing competition, but also have at their core a service that is obsolete and inefficient: the communication of interbroker compensation offers. The essence of the MLS for more than 30 years has been the offer of cooperation and compensation. The National Association of Realtors includes the offer of compensation in its definition of MLS, considering services wit...