Tue
No Joke: Redfin fined $25,000 by NWMLS
Posted by Marlow Harris under Real Estate
[12] Comments
Our MLS does not fool around.
Pursuant to the rules, NWMLS must publish Notices of Disciplinary Action taken against its members. Windermere, John L. Scott, Keller Williams, ReMax and other assorted companies were fined last month for behavior ranging from visiting a “By Appointment” listing without calling first (fine: $2,500), marketing a listing without inputting it into the MLS (fine: $3,000) to soliciting another Member’s listing (fine: $5,000).
But the largest fines last month were levied against Redfin, probably because this is not the first time they’ve been in violation of NWMLS rules.
To wit:
Company: Redfin Corp.
Designated Broker/Branch Manager: Kevin Broveleit
Agent: Kevin Broveleit
Rules Violated:
NWMLS Rule 27 (Republication of Client Handout and Public Open House Database),
Rule 28 (Subscribers “Framing†of Members’ Sites),
Rule 183 (Transmitting Proprietary NWMLS Information to Non-Members),
Rule 190 (Advertising Another Member’s Listings),
Rule 192(d) (Ownership of NWMLS’ Listing Photographs)Summary of Complaint: Company advertised other members’ listings without their permission, republished data taken from NWMLS download in newsletter and blog, and disclosed address of listing input into NWMLS as an undisclosed address.
Penalty: $25,000 fine.
(Thanks to Bruce Phares for the tip.)
Wow. The MLS has way too much power. But without that monopoly of information it loses its power, so it has to enforce it, otherwise the power is gone…
Provo, like many people, forget that the NWMLS is not “free”, and that it is a very expensive system developed over many years and many dollars all paid by dues paying real estate agents (and those dues are high). These same people who complain don’t seem to fault companies like eBay for controlling its information and getting paid for the services it provides by brokering, packaging, hosting, distributing, guiding, and dispensing that information to the public (even though it is selling items owned by others, just like the MLS). In many people’s minds they have come to the point of forgetting that the MLS is not a “public right”, but instead it is a private business enterprise that meets a very important market need. The fined company abuses the hard work and agreements of others as a matter of policy, so fines against it are appropriate.
S — yes. Thanks for your comment. Agents pay for the MLS and the rules are there to protect fairness. In fact, I believe only a fraction of the offenses ever pay fines. It requires participation of agents to report infractions, because the MLS cannot monitor all. I think we (agents) should all become better stewards of the database and regularly report misuse.
I think that the rules help level the playing field. If all of the brokerage offices have to follow the same rules, it gives the smaller offices parity with the larger ones. No one has an advantage over anyone else.
Another interesting fine last month was against a John L. Scott agent who modified the listing price of his own home on several occasions by $1.00 to make it appear on the Hotsheet. Similar price changes were made to some of agent’s other listings to try to give them an advantage. His fine? $3,000, with $1,500 suspended on the condition that the member not be found guilty of any further Rules violations within 12 months.
I doubt he’ll do that again.
This month’s was the longest list of fines that I can remember. I think the MLS is stepping up its effort to uniformly enforce its rules, which is good. Each one of these rules is there to protect consumers’ and/or MLS members’ interest. It is interesting Redfin’s fine is so large (biggest I can recall), but there is a $10,000 fine on the list this month…and Redfin did have a number of infractions listed. I’m sure there’s more fun to follow on this topic.
I saw Redfin on 60 Minutes. They interviewed their CEO and then a local realtor I believe in Seattle. They asked the realtor how she was able to justify her fees when a company like Redfin could do it so “cheaply”. It was so pathetic to hear her stammer and stutter her way through that interview. I so wish I could have had the opportunity to address that as I have worked my ass off for my clients – more so this year than any other and I have zero doubt that I earn every penny. Service you will not – can never get from a Redfin.
This is an interesting situation since other sites like zillow.com, iwantanoffer.com and trulia all provide free access to homes that are both listed on MLS and FSBO. Eventually the barriers to entry created by the MLS will be diminished and it will become an open playing field. Other companies such as Helpusell, offer discount fees. It truly depends on how much time an home owner wants to spend selling their home.
As far as I’m concerned MLS has had way too much power for way too long. I think it’s time that realtors band together and come up with another viable solution. Competition is the best form of innovation. Anyway, that’s my 2 cents.
Warm Regards,
Rob Lawrence
http://www.battlecall.com
We did band together.
And we created the MLS.
I think most Realtors and real estate agents like the MLS, or they would change it. Our MLS is Broker-owned and we make our own rules.
Anyone is welcome to create an alternate system.
Greed is the real key here. Sellers are, Buyers are, Realtors are. This is why realtors will always be in play. Low cost providers have no real Capitalistic approach to the transaction. Like Communism it does not work. Capitalism does.
The MLS has rarely been giving fines to agents that are guilty of re-listing properties for the sole purpose of making DOM more difficult to determine. And, as stated above, other sites are listing data from competitors alongside MLS data.
Redfin is an MLS member, pays its dues, and should be allowed to use this information in an appropriate manner. The MLS fines seem to be a punitive effort designed to impede a business model, not to enforce existing rules.
Just as online brokerages did not get rid of the stock broker, Redfin is no real threat to a good real estate broker.
Tough times should not lead to rash decisions about one of our paying members.
As a member of an MLS, I feel they do provide a great service to buyers and to brokers. I am a member of my local MLS and make use of the broker reciprocity which enables me to post all listings on my web site.
Companies such as Redfin should be forced to follow the same regulations as any other broker and pay the same fees for usage as we do.