Posted on 05/09/2005 4:59:07 AM PDT by Koblenz
NEW YORK (Reuters) - U.S. antitrust regulators are preparing to sue the National Association of Realtors (NAR) over policies they believe will illegally restrict commission discounting and harm online competitors, The Wall Street Journal reported Monday.
The effort by the Justice Department and the Federal Trade Commission aims to protect buyers and sellers of homes and could help contain high real-estate costs in a booming housing market, the newspaper said.
(Excerpt) Read more at money.cnn.com ...
Anyone could do the job they do today if only the RE industry didn't have exclusive rights to the networks.
I'd say the same thing about law.
You might be right. However, a RE agent is not an officer of the court like a lawyer. If the RE agent screws up the can just shrug their shoulders and say, "You should have gotten a lawyer". Where the lawyer loses their license and livelihood.
Good RE lawyer is the key. Contract review, closing, and any advice/recommendations - that's all you need.
No way can a real estate agent just walk away from everything as you imply. There is lots of litigation over real estate agents. As for the phrase, "an officer of the court", this really does stroke an attorney's ego doesn't it? Nonetheless, I have rarely encountered lawyers losing their liscence and livlihood (other than Bill Clinton of coruse). Like physicians, don't we rely on lawyers to police themselves? That always works...NOT!
bump for later
None of us get a full 6% on a resale.....
I list homes for 0% to 1.5% and receive what the SELLER is offering me to bring them a BUYER..... Would I bring a BUYER to a 2% sale...maybe...maybe not..... This is capitalism at it's best.... We Realtor's are free to set our prices at any level... BTW...new home builders are paying better commissions than any resale SELLER....
As already stated: "Get a lawyer" is what my realtor's reaction was to HIS mistake!!!
Good. And, you'll notice you need a lawyer to litigate. Kind of proves my point, doesn't it?
As for the phrase, "an officer of the court", this really does stroke an attorney's ego doesn't it?
It has nothing to do with ego. It's a matter of law and obligation. Something a RE agent, who took a six week corresponcence course to get licensec, probably doesn't know nearly as much as a practicing lawyer.
Don't know what state you live in, but realtors here in CT can't do much more than represent the buyer/seller as an agent.......a realtor closing a property is strictly a lawyer's purview.
6-7% for homes today is outside the pale as far as I'm concerned....my brokerage offers a straight deal: 4% if we sell it, 5% if another agent brings a buyer, with 2.5% going to that house. All commission percentages are negotiable in CT. The listing agency eats the cost of all advertising, which can get expensive for a run in the NYT and other targeted market areas.
That said, I'd like to know how, as you state, all realty business is done on the internet.......would you buy a property without looking at it personally? It's my time, my car, and (again) in CT, if you screw up and misrepresent a property, you and your brokerage are responsible.......non-disclosure is punishable by stiff fines and suspension and loss of license.
"When we were looking for a house, the agent took us to various properties every week from November to the following May"
Six percent helps incompetant agents survive in the industry and makes the competant ones wealthy.
I don't many wealthy agents who would have spent and afternoon a week showing you houses for 6 months.
When I worked in real estate, it was common for agents in the Seattle area to not show homes that had a reduced commission unless the buyer really wanted to see it. Agents will tell prospective sellers that a reduced commission will restrict the number of people seeing the home. Agents won't spend as much on flyers and advertising on a reduced commission. And if doing a weekend open house on a listing which if sold will bring the listing agent 3% or do an open house on a 2%...which one will these narcist people hold open? Right.
The commission percentage should be negotiated by the seller and the agent which is a free market principle in practice.
I'm convinced that local officials help in this regard. I sold my house in Reynoldsburg, Ohio a few years ago. I attempted to first "sell by owner". I spent quite a bit of money on some nice signs - simple ones that were not eyesores. I put them out in my neighborhood and they were "stolen" within a couple hours. I found out later that some anal city official doofus confiscated and destroyed them. Wouldn't be suprised if the wimp's wife was a Real Estate agent. By the way, none of the other Columbus suburban neighborhoods have this stupid rule.
Are realtors allowed to put up signs?
I blew that last line:"I don't many wealthy agents who would have spent and afternoon a week showing you houses for 6 months."
Should read:
I don't know many wealthy agents who would have spent an afternoon a week showing you houses for 6 months.
Hahaha, I'm suspicious, you sure sound like a lawyer.
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