This subject might not appeal to many real estate practitioners because none of us like regulations.  However, with the barrage of misleading information out there, I wonder if our lawmakers are paying attention.  After all, it was only in the recent past that we almost experience financial collapse.  Were there co-conspirators from the real estate industry?  Will we be on the radar screen in the foreseeable future?

As a consequence of the aforementioned crisis, the current administration is taking measures to reform the way business is done in the financial industry.  Yes, they are re-writing the rules of the game.  Considering the fact that we are intricately related to the financial industry, why would they not look at us?  One only has to take a look at the latest foreclosure statistics to see that there are some serious problems that need to be addressed. 

Besides that however, there are some very reputable Realtors who are addressing problems that exist in the real estate industry.  Below, I have cited two very prolific bloggers, Lenn Harley of Rockville, Maryland and Ruthmarie Hicks from White Plains, New York. I have provided an excerpt from their blogs.

Lenn Harley, Real Estate Broker, Rockville, MD in her blog entitled, "LOOKING AT REAL ESTATE TEAMS AND TEAM SPECIALISTS," addressed the following questions: DO REAL ESTATE "TEAMS" EXHIBIT EXPERTISE.  The concept of "teams" in real estate practices is popular and often compared to medical "groups".  I see little to no resemblance and, in fact, assigning a title of specialty such as "Buyers Agent" to a member of a team is often misleading to the consumer."

Ruthmarie Hicks, Associate Broker, White Plains, NY in her blog entitled "This Brokerage Has 750 Listings.....So they must be the best! (Part 1)"

Here are some of the issues she brought up, "Does size really matter?  Does the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor? What Does the Brokerage Bring to the Table?"

What is your opinion?

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This post has been included in New Mexico Real Estate News

50 Comments on Is it time for more stringent regulation in the real estate industry?

20 Most Recent Comments Displayed Show All

NOV
01
2009
439,212 Points 2 Featured Posts Outside Blog Called Shot Master

Hi Lloyd~  We just need the rules we have to be enforced!  New regulations would not really be needed.  
2:18pm • #32
464,255 Points 1 Featured Post

GOod post today, makes sense.

 

Patricia/Seacoast NH
2:43pm • #33
569,544 Points 1 Featured Post Localism Sponsor Outside Blog

Hi Lloyd,  Certainly there were enough bad agents who found ways to scam people during the last 3-4 years that the Feds might want to take a close look at us.  The bad guys are better at scamming us than we are at protecting ourselves from them ! 
3:29pm • #34
492,317 Points 10 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Wow!  I am not sure how to approach this.  I was not expecting this level of response to my post. Let me thank each and everyone of you for your comments.  Let me also say that I am indebted to Lenn Harley and Ruthmarie Hicks whose blogs I cited to make this one possible.

Regards,

C. Lloyd McKenzie

www.LloydMcKenzie.com   
3:56pm • #35
156,823 Points 1 Featured Post

Good post and information.
4:51pm • #36
816,021 Points 13 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

AS a 1099ed individual I would hate to see big government throw any more wrenches into our real estate life !!!
4:52pm • #37
167,957 Points 4 Featured Posts Localism Sponsor Outside Blog

Being relatively new to this industry (just under 3 years), I am still amazed at how much of it seems to already be regulated!  I also wonder how there was so much fraudulent lending as to cause the downfall of the housing market BECAUSE it seems like Big Brother was already watching.  Needless to say, with the current troubled housing market, I think there will be further regulating to come.  Which is also the reason that I will most likely never want to have my own brokerage.  I own another small business which has NEVER had the kind of hands on regulating that the RE industry has.  And I am very grateful about that!
6:26pm • #38
127,948 Points 5 Featured Posts

The People voted for change and the People received a BIG Government in return.  There's some change for you.  The writing is on the wall for reform.   We will all be waiting with bated breath to see what reform will come.   I am hoping the reform and regulation will remain with the individual states.
7:28pm • #39
882,832 Points 50 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp

How about this...  Do away with licensing.  And then get the NAR or other trade organization to grade the members...  You don't need a license to work on a car, but screw up a brake job and people can die.  The trade group (NASE) requires tremendous amounts of testing and CE.  You can't get a Brake Cert. until you have shown that you deserve it...  Or Tune-Up... or anything else. 

If you think a broker has a lot of liability, look at a service center.  But they seem to do it without onerous regulations...

 

Just sayin.
7:59pm • #40
321,764 Points 16 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

 

Good and well told information. Thanks! I appreciate it very much. Great stuff.

 
10:26pm • #41
982,452 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Good and well told information.  Thanks!  I aprpecaite it very much.  Great stuff.

That's what Aaron Vaughn says on all his commenets.  He's SO BORING!!

Real estate is local, and local it needs to stay.  That said, whatever changes and overalls that are given, I really think it would be better served to be enacted by NAR, and not Uncle Sam. 
11:04pm • #42
1,352,557 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I expect there will be more regulation coming.  Big government can't seem to help but create more regulations and more bureaucracy.
11:21pm • #43
NOV
02
2009
131,509 Points 15 Featured Posts

The Writing is On the Wall...

Barney wants the Federal Government in the Housing Business

"But Frank tells Weisberg that he isn’t planning to leave Congress in the near-term. “I want at least two years with President Obama and a solidly Democratic Senate so that we can get the federal government back in the housing business,” he says."

 
1:52am • #44
629,905 Points 18 Featured Posts Localism Sponsor Outside Blog Called Shot Master

C. Lloyd,

Both writers that you have quoted bring up some good points as do you.  I have thought for some time now that we need to have better CE, ie. broker related topics for brokers or those that are thinking about becoming a broker.  But we do need to do a better job of policing ourselves if we want to have big brother stay out of our business..
5:40am • #45
291,971 Points 15 Featured Posts

Just keep raising the entry level, and increasing the fees would help this proble. Unfortunately large organizations like NAR don't see this as a good idea. Physician heal thyself.
8:56am • #46

I might be missing something here, but I'm confused as to what the blogs about whether a team is a valid business structure or discussions about the size of a big real estate company has to do with regulation?
10:05am • #47
1,741,190 Points 20 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Lloyd,

In the first place, real estate is local. In the second place, real estate salespeople are licensed by their respective states. Therefore, the federal government has no role. :)

Steve
11:30am • #48

LLoyd, I think a large part of the blame for the financial crisis was BECAUSE of government intervention and the last thing we need in any industry is more government intervention. It seems every time government gets involved in trying to fix something they screw it up even more...HVCC would be a perfect example. That said, I think it would be a good idea if the industry did a better job of policing itself in regard to ethical and educational standards.
1:31pm • #49
637,065 Points 10 Featured Posts Localism Sponsor Outside Blog

Any changes brought on by the government will probably make a sick market even worse. The problems we have are not caused by realtors, they are caused by lending money to people who can't make the payments. I don't know how regulating realtors can help that, except to find another opportunity tax for the Obama team.

Wealth redistribution as he says. Don't we all feel wealthy?
4:23pm • #50
NOV
03
2009
492,317 Points 10 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

The overwhelming majority of respondents to this post are opposed to more government intervention.  I agree with that point of view also.  But let's face it, there are problems in the real estate industry. This blog merely suggests the possibility of government intervention. It is a subject that all of us should be talking about.  To take it one step further, we should be brainstorming ideas of how we are going to address problems that exist in our industry.  If we do not, the government might just step in and fix them.  Far fetched? Look at the financial industry.   

Here is Chris Olsen's idea, "total transparency to remove the hype, spin, exaggerations, puffery, false claims, misleading self-promotion and the like so consumers can truly determine what it takes to be competently represented."

Sorry Linda, it wasn't meant to confuse anyone.  Actually, "discussions about the size of a big real estate company has to do with regulation?" was not the subject of the blog. The two excerpts were merely used to support the premise.  There is a lot of chatter, that might have already caught the attention of lawmakers.


 
9:47pm • #51

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C. Lloyd McKenzie, MBA - ALLSTAR REALTY -- Your Home Sold in 59 Days or Less...

Albuquerque, NM

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Empowering Buyers & Sellers in Albuquerque and Rio Rancho NM

Address: 7001 Prospect Place NE Suite 200, Albuquerque, NM, 87110

Office Phone: (505) 888-1700

Cell Phone: (505) 750-8552

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Albuquerque and Rio Rancho, New Mexico are among the most stable real estate markets in the United States. This has caught the attention of the national media. As such, it is incumbent on local Realtors to provide information about our cities for those interested in investing, relocating, or visiting. My goal with this blog is to highlight issues or topics in real estate, and where appropriate apply them to the local markets.


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