Michigan Gov. Jennifer Granholm has come out against a state bill that would make Michigan the tenth state to outlaw discounted, no-frills real estate brokerages, Fortune has learned.The bill, which has already passed in the Michigan House, would impose so-called "minimum-service requirements" on all real estate agents in the state.
As with bills passed in nine other states including Texas and Illinois, the Michigan bill is being pushed by the state's powerful Realtor trade group and would effectively force all agents to provide full service. Some discounters would otherwise be willing to offer limited services and charge home sellers much less than the traditional 6-percent commission.
Elizabeth Boyd, an aide to Michigan Gov. Jennifer Granholm, wouldn't promise a veto - "we try to stay away from the 'V' word," she said. But Boyd did make her boss's position clear. "We do not believe the legislation is needed," she said. "It forces consumers to purchase services they neither want nor need."
