I just finished ready Steves' article on the DOJ vs. NAR. There are many things I like about NAR, but I agree with Steve that their "perpetually sunny outlook" does not make Realtors® look very professional. Despite the fact that NAR is part of their lawsuit, the fact is that some states, including my own of Oregon, have some business practices that are anti-competitive, and not all agents are Realtors® and don't subscribe to the COE.
If agents are really honest with themselves, as a group, the DOJ lawsuit has some legitimate points.
The fact is that some agents behave unethically by not disclosing to their clients their business practices such as not showing lower co-op properties, not working with certain companies due to business practices, etc. I think a business has a right to practice these ideas, AS LONG AS they disclose them to a potential or existing client. I do think the DOJ lawsuit has brought some industry practices by SOME agents to the press, which is a good thing for consumers.
I had a house that I sold this summer at a slightly lower co-op for various reasons, and a potential buyer working with another agent, was really upset that her agent had not showed her the house. The house had been on the market for two weeks and we had an offer, when she found out about the house. Her first question to me was, "What commission did you offer to the buyer agent on this house?" It was exactly what she was looking for. We can't bury our head in the sand and pretend that agents aren't being upfront with their clients. This buyer was not even given the chance to pay the difference herself. She was just aced out.
Oregon is one of the few states that does not allow rebating. I do agree with the DOJ that it is anti-competitive. While I don't see myself using it, I think a business has a right to do those if they want. I also think the MLS's gave up the right to claim to be "only an agreement for co-operation" when they starting contracting to put MLS data all over the internet.
While the DOJ is biased, what they have on there is not untrue. The real estate industry has some issues that need to get ironed out, and I, for one, don't think that is a bad thing. I strongly believe that a capitalist system has room for all business models, and they all have pros and cons. Lexus still exists despite that Ford Escorts are cheaper. Consumers are capable of making a choice that best meets their needs. I don't think it's the government's job to regulate models, just make sure whatever model it is, ethical business practices are followed and appropriate disclosures are made.
I for one, am not afraid of the changes that the DOJ wants. I think if you have confidence in yourself as an agent, it does not matter what the other business models are that are out there. You will do just fine. The only agents that can't show the value of their services, are those agents that don't know the value of their services. People will pay more for expertise, competence, and professionalism any day. I just don't see alternative business models as a threat to anyone, unless you are incompetent. Then you shouldn't be doing this anyway.
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