Brokerage Models, Consumerism, DOJ, Editorial
NEWS! DOJ Opens Brokerage!
October 25, 2007 by REALonomics · Leave a Comment
Breaking NEWS! You can now list your property with the Department of Justice, a.k.a. DOJ Realty (spoof). Why? They are suddenly the country’s real estate brokerage experts (more spoofing). Their new website gives consumers tips and angles about what is wrong with their current broker, the industry and how, if you listen to them, you’ll have a wonderful new home buying and selling experience. Question, is the DOJ practicing real estate without a license? We’re serious! Is the DOJ tampering with contracts currently in force…again, we’re serious! Well, we’re sort of serious…in order to get your attention and drive home the point. What’s the point?
REALonomics has long held the position that the DOJ’s core target is not MLS rules…yes, we need to reform them…fast, making them consumer-centric. The core gripe is not NAR’s operating principles…more smoke and mirrors. We’ve held that the DOJ’s positions are not, at their core, about the consumer…that’s the ‘no one can argue with this position’ used by the DOJ to pander. It’s not about competition, either, nor service levels.
It’s not MLS, its not NAR’s rules, it’s not the consumer…nope! And it’s not about competition and service levels. It’s about MONEY, a.k.a., the long held notion that real estate practitioners charge too much and do to little. This is all fueled by the myth of the millionaire real estate agent, loan officer and escrow agent. It’s about fanning the consumer’s already raging emotions about paying all of us too much. Mortgage and title are next in line.
This Stuff is all Still True
As we stated, and as we have noted herein, the MLS property blockade does need to change in favor of consumer-centric transparency. NAR could and should make some serious adjustments in the rules we need to follow. Yes, the consumer is king and we ought to start operating as if we believe it.
Competition, you bet! We need more new models that compete in the marketplace by providing new solutions to real property issues faced by consumers.
And what about our service levels…another truth…we have a look-alike industry that is totally annoying. After we get past the door-hangers, the MLS, lock-boxes, the Internet ad, open houses and refrigerator magnets, what is it that distinguishes one brokerage, mortgage or title firm from another? Why is it that 95 percent of all residential listings in the USA carry a six percent fee? Why don’t we negotiate, truly negotiate, up and down the economic ladder? Frankly, I look around today and think, “I wouldn’t take that listing for less than 12 percent…too much work, too much risk, too little financing and too few buyers.”
The DOJ is Right – We have Some Things to Fix
“DOJ Realty Watch”, the new consumer advocacy agency, is right; we have a truck load of issues to face. But, that’s not what this is really all about. My friends, just follow the money trail! Or, I should say, the misconception about commission fees.
We, via NAR, are doing what we always do, bucking, kicking, scratching, clawing and arguing when we ought to be transforming our industry making it more effective for the consumer and thus dispelling all doubt that we are worth all we charge and even more in light of current market conditions!
Go ahead take a look at the DOJ website…read a bit…but mostly, read between the proverbial lines, it’s easy, the line spacing is very wide. Then, ask yourself question #1; “is there something we need to change?” After answering that question, ask yourself question #2; “is this, however, really about money hidden beneath legal briefs?”
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