A More Open MLS Will Not Lower Housing Prices
The MLS system has been used by real estate professionals for decades as a way to bring buyers and sellers together in the real estate transactions. Typically homeowners have had to hire a real estate agent to list their homes so they can be placed on the MLS. The fees for this service have typically ranged from between 4 to 6%. The listing agent keeps half of the commission while the other half goes to the buyers agent for bringing a purchaser to the property.
Many homeowners think that the current system is unfair and is just there to take money out of their pockets. While buyers think of the high commission rates being charged by real estate agents is driving up the cost of housing. The competition Bureau of Canada is viewing this is anticompetitive and would like sellers to have it easier access to the system.
However to think this will lower housing prices is not the right way of thinking. Homeowners will continue to ask the same price as if it were listed with a realtor and simply pocket the extra money. Buyers will still have to pay the extra price which we just tacked onto their mortgage.
What seems to really be driving up housing prices, as can be seen from Markham homes for sale and other areas, is low interest rates. That is because buyers don’t tend to look at the asking price since they will not be paying cash for the home anyway. The biggest concern is how much it will cost per month. If they can afford the monthly fee they would tend to buy the property.
