Complaint Review: Multiple Listing Service MLS Zillow NAR

Home Sellers, The Department of Justice ("DOJ”) has prosecuted a "long line of antitrust cases involving Multiple Listing Services (MLSs)” in which the MLS broke federal law to limit consumer choice and increase broker commissions. There’s one case that really stands out though. Not too long ago, —redacted— MLS filed a motion to dismiss its case, claiming that it was exempt from the Sherman Act. The MLS argued that its felonious conduct—restraint of trade and price fixing—was perfectly acceptable given its status as a corporation formed by brokers. The argument was not just absurd. It was mens rea on display.

Wealth Protection Rule #1. When you hire a listing agent, hire him on the condition that your listing will be a "pocket listing”. Never allow your property to be listed on the MLS or any other service linked to a realtors’ association. The nation’s MLSs, all private businesses situated in a strip mall, between a message parlor and a Subway, have no more jurisdiction over real estate than their strip mall counterparts. They’re actually realtor-controlled outfits that perform special services inuring to the benefit of realtors. Special services. When the MLS assumes a broker’s obligation to advertise on behalf of a seller, it inputs an advertisement into its database, which it then pushes out to realtors. The advertisement is useful to the seller because it’s the advertisement the seller ordered. What’s not useful to the seller is the MLS’s trafficking in his old advertisements. These actions artificially devalue his property. By as much as 40% in some markets. Many sellers direct the MLS to delete old advertisements, but the MLS always refuses. Why? Listing agents maximize their earnings by having their clients priced below market. When a listing agent has a portfolio of "blowout inventory”, he closes more deals. So he relies upon the MLS to strong-arm his clients into cutting price. This is the MLS business practice that has yet to draw fire from the DOJ. Ironically, it’s the one that can impact your wallet the most. While most any seller can sue the MLS in superior court for breach of contract, interference with property rights, or some other common law cause of action to "right a wrong”, there’s a better route. Stay off the MLS in the first place. Always do a pocket listing.