Redfin gets fined for Blogging
Redfin simply acts like an incorrigible whiz kid.... trying to stretch the limits on how real estate brokerage marketing is conducted. John Cook reports that the Northwest MLS System (NWMLS) fined Redfin $50,000 and asked them to stop publishing their blog Sweet Digs, which reviews listed homes in Seattle and San Francisco. Since it's NBA playoff time, I liken the MLS fine to NBA referees' new get tough policy - nowadays any hint of misbehavior - laughing from the bench, clapping, or lifting your jersey to expose your nipples can get you tossed. It's all in the interpretation.
NWMLS seemed to go out of their way to enforce the rule that prohibits brokers from "advertising" other brokers' listings without permission. The crux of the argument is the word "advertising". I notice Greg Swann spells it out exactly the way I would:
This is absurd. Where any thoughtful person would understand
advertising to mean that stuff that newspapers and broadcast outlets
used to be able to sell before the internet came along, NWMLS seems to
be arguing that any public mention of a listed property by a member is advertising.
I can only add that NWMLS's broad legal interpretation of the word "advertising" flies in the face of the new social media real estate is beginning to operate in:
- Zillow Home Q&A - Encourages Q&A dialogue on specific home listings
- MyCurrency - Encourages user-polled pricing estimation of specific listings
- Homehugg - "The members of HomeHugg are able to add homes, comment on homes, map their favorites and share them with their family and friends"
- Socketsite and its blogging cousins that do masterful work presenting their reviews of neighborhood homes
Technorati Tags:
Redfin, Redfin.com, MLS, NWMLS, Sweet Digs, blogging, Zillow, My Currency, Homehugg, Socketsite
MLS associations would love to shut down Zillow, Socketsite, etc ... but they can't for the simple reason that they're not MLS members. Redfin is an MLS member.
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The NWMLS' position isn't new. Rule 190 is consistently violated and the NWMLS has been levying fines for quite some time. Individual agents have been fined up to $7,500 for violating Rule 190, so $50k for a Brokerage isn't that significant.
Most violations are blatant advertising (Craigslist) by buyer agents hoping to snag a buyer. This is an on-going issue, it didn't come about because of Redfin...it's not a Redfin issue. When the little guy gets fined he/she doesn't have the press waiting to gobble it up as Redfin does. It's not News.
In reading through recent posts on Sweet Digs, they're just rehashing listing info, but they throw in a comment or two. So, all of a sudden, it's a "review". I agree with the NWMLS' decision in this case.
The NWMLS is broker-owned, not Realtor-owned and has no affiliation with NAR or any local Realtor associations. Not all Brokers are Realtors.
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If I saw an awesome house for at a great price but it had absolutely no internet exposure due to the fact that the agent was technologically challenged, I as a realtor could not expose the home to the general public unless the other agent agreed to let me do that. As a real estate professional, there is no reason you could possible give me to justify this restriction. If I follow the same advertising rules for this home as I do my own listings, there could be no possible downside. The seller of the home would get more exposure. More exposure could lead to a better sales price. A better sales price would lead to more commissions. Higher prices lead to more commissions for the subsequent sales.
This assinine rule along with packaging both sales commissions into one need to be abolished.
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Kevin is right - the control and enforcement comes from membership in the MLS.
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Pat - there you go again trying to stir up trouble. Your not a real estate agent, so you don't have to worry about Redfin, Zillow and the likes.
If we don't draw the line in the sand and stop them now, well... things could change.
That could put pressure on me (and others) to change. What do you think - life is about evolution and growth?
Come out of your glass tower of transparency and feel the pain of ignorance and fear. Where is your compassion grasshopper?
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The good ol' boy MLS's need to extract their heads from their posteriors. Burying your head in the sand (or somewhere else...) isn't going to make these things go away.
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