Very interesting post. I plan to offer rebates to get some business. I will have to see if anything has changed in IL.

thanks for the post

Ray DeLao

a real loss of consumers!

Bottom line is agents in Tenn obviously could/ didnt want to rpove their value and thus their price, so instead they focused lobbying energy on the gov. All this change does is make discount models harder.

BTW, all of the 'experts' that looked at this found in horrible and every commentary I have read on this pointed to lobbying rather than taxpayer interest.

Sad day for Tenn. block the discounters and keep cigarette taxes low!

US Dept of Justice (Not as easily bribed as a Tenn law-ma)

"would impede real estate brokers from competing on price and force Tennesseans to pay more in real estate commissions."

It goes on to say the only losers would be the citizens of Tenn.

Here in Ontario, cash rebates have been banned under statute for some time. You simply can't offer a rebate and everyone seems to be able to live with it, both consumers and REALTORS.

Wayne- Yeah here we all live with $4 a gallon gas too. If we had some competition in refinning maybe it would be a bit better.

I leave it to the experts at the DOJ to tell us what's in our best interest versus the politcal lobbies

Offering cash rebates is not a way to make the market more open or competetive. It is a wasy to allow customers to get bought and sold like a commodity. If the discount broker who so aptly smacked TN for their action would think about it. Who has more $$$ to give out as a cash rebate a huge company or a new small company. The use of a cash incentive to equal the playing field is the oddest thing I have ever heard of in a business argument. Does it help the Auto industry, NO. They sell a few more cars short term but $$$ rebates do not narrow the gap in sales volume after the rebates stop. The true way to compete is to give the public a good product that meets their needs. Do you see stock brokers, attorneys or insurance agents offering a cash kickback to their clients? No, the loosening of cash restrictions is not a healthy way to inprove competition in any filed of work.

As for the comment by another AR member that this cash rebate system would inprove our values that arguent does not hold water. I have several friends who own flat fee / discount brokerages and they agree that $$$$ = corruption in any business. They do not understand how a cash rebate is going to help them when the other brokers have way more $$$$ and could actually crush the smaller or newer companies with cash. States like CA and TX have had to modify their laws that allow for cash rebates in order to control the some times outrageous $$$ being given.

FYI cigarette taxes were raised and grocery taxes lowered know your facts before you kick dirt my fellow AR agent from FL

Paul,

Great opinion...I will stick with the Dept of Justice, and Council for economic activity as well as the consumer advocacy groups on this versus the lobbiests... sorry

Auto industry, brokers and attorneys all have 'competitive rates'. I can hire a full service or partial service agent.

Talk about $$$ equals corruption and just look at all the crazy tactics agents used to get their commisions all these years.

What's your problem with a competitive market? Do you feel threatened because you don't offer any value?

I dont'

http://littlepinkhouses.com/?p=83

See the above link. I think it walks through Tenn politics and TAR money on this subject quite well...

Well it will get rid of all those companies who built their practice on giving buyer rebates.

Very interesting.  This is something to keep an eye on.  I don't give rebates but I see more and more companies doing it.  I do like free markets so I'm torn on this one. 

NAR bought that vote in TN. Traditional Realtors, like ole Linda there, hates price competition. How ‘bout we ban agents who use networking (using their sphere of influence) to get business since I don't happen to like the way you traditional Realtors smooze up to folks to get their business? You aren't getting business based on worthiness, but rather your contacts. Yea, let's make that a law.

It sounds a bit absurd doesn't it?

Good for you, Jenny. Cathy Jager is the best! She knows the law!

BTW, a whooping 81% of agents in Kentucky opposed cash rebates too! That left only 19% who supported or were indifferent toward allowing cash rebates. The minority, in this case, won the day. I am behind the USDOJ 100%! Cash rebates provide a means of price competition that benefit consumers.