Denver-based Trelora under fire for public-facing commission database
If you practice real estate in Denver, you have likely already heard about the major controversy surrounding Denver-based brokerage Trelora, especially the news over the past couple of weeks.
Although this topic probably only interests my fellow Coloradoans, I wanted to post this and see what other agents around the country think about all of this.
If you have not heard, Trelora recently came under fire after they announced the launch of a searchable database that revealed specific brokerage commission amounts offered on every property in the Denver metro area. The database allowed home buyers to see the actual dollar amount a seller had set aside to pay a buyer’s agent. REColorado (a Denver MLS) then slapped Trelora with a cease-and-desist letter, claiming that the company had broken MLS rules that say brokers “may not distribute, provide or make any portion of the MLS database available to any person or entity that is not authorized by the MLS Rules & Regulations.”
Trelora has already created a stir in the Denver market because of their unique commission structure (or lack thereof). Trelora has done away with the practice of listing agents taking a listing at 6% and giving 2.8% to the buyer’s agent, and instead charges sellers a flat $3000 fee to pay the buyer’s agent. The listing agent only gets paid when they help a seller find a new home. In other words, it doesnt matter whether the purchase price is $100,000 or $900,000 the agent representing the buyer will still receive $3000 paid for by the seller.
Since REColorado issued their cease-and-desist letter, Trelora responded by agreeing to take down the commission displays from their database. They also attempted to throw other local brokerages under the bus by submitting a list of over 60 infractions of REcolorado rules across 30 other real estate websites.
So my questions to all of you are:
What do you think of the waves Trelora is making here in Denver?
Is this the type of change the real estate industry desperately needs, or is it just a desperate attempt for a company to make a name for themselves?
What would you think if a company in YOUR area did the same thing?
Please post your opinions in the comments below!