Is it a losing battle for brand-name brokerages?

Are new business models winning a fight with older brokerages? (Flickr photo by red betty black.)

The new June issue of the Real Deal has a piece about an unsurprising development among brokers.  In the article, which correctly quotes me, writer Candace Taylor notices that many brokers are questioning the value of their affiliation with name-brand firms in New York City.

Referring not only to commission splits but also to annual fees up to $5,000 that brokers must pay their firms, plus errors and omissions insurance, Taylor notes:

Manhattan needs a true MLS, not an impostor

One of the city’s bigger brokerages announced last week that it has established a Virtual Office Web site (VOW), which many see as a step toward a Multiple Listings Service (MLS) providing buyers with access to essentially all exclusive listings in the city.

Although the announcement by Halstead Property sounds like a voluntary initiative, the action results from a federal law that goes into effect this year.  In fact, the toothless Real Estate Board of New York (REBNY) has instructed its member firms (of which mine is one) to comply with the law, according to a commenter on the Real Deal Web site, where I first saw the announcement.

The Corcoran Group has been silent on any of its VOW plans, but Prudential Douglas Elliman says it is in the game.