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A Paradigm shift in Real Estate

By
Real Estate Agent with Open House Realty

A Paradigm shift in Real Estate

Many realtors who watch the real estate industry closely are seeing a storm of sorts brewing on the horizon. This storm possibly represents major new changes to the real estate industry in the not too distant future. These new changes will be viewed by some businesses and realtors as opportunities while many more will view these changes as an endangerment, threatening the current status quo and the way of doing business.

The new storm on the horizon involves fair business practices, specifically “antitrust” in regards to competition in the real estate industry. The Department of Justice recently filed an Antitrust lawsuit against the NAR (National Association of Realtors). NAR is one of the largest trade lobbing groups in the country representing realtors and real estate firms alike. The Department of Justice alleges that some of NAR’s policies “denies brokers using new technologies and business models the same benefits of MLS membership available to their competitor brokers, suppresses innovation, discourages competition on price and quality, and prevents new, efficient competitors from entering into the marketplace — all to the detriment of consumers.”

NAR has since made policy changes but is it enough to ward off the DOJ? To better understand what is happening, answers to the following questions must be examined:

If the National Association of Realtors (NAR) looses the lawsuit to the DOJ, what would the ramifications be for realtors and for the end consumer?

Would a major legal blow to NAR ultimately pave the way for new businesses like banks, lenders, internet companies (eg Google, Yahoo, MNS), and insurance companies to enter the once exclusive real estate market?

Is the current real estate sales model efficient and cost effective for both buyers and sellers of real estate? If not, how can costs be reduced?

Could real estate commissions eventually disappear and could realtors one day be salaried employees?

Only time will reveal the answers to these thought provoking questions and only time will reveal the outcome of the DOJ lawsuit against NAR. NAR believes strongly they will win this case with ease. Others feel the DOJ has a strong case against NAR. The only real certainty is that the real estate industry will continue to change and evolve rapidly in the next few decades. As the proverbial quote goes“It’s not the strong or most intelligent that survive but those most responsive to change.”

Posted by Jonathan Kostyra with Open House Realty in Greenville South Carolina.

Open House Realty is a firm that offers consumers choices in real estate services. "Open House Realty has had the vision to see these coming changes and has responded with a non-traditional service model offering consumers choices and flexibility with real estate services. Open House has also setup a virtual office that provides cost savings that we can ultimately pass on to our consumers," states Jonathan. 

Jonathan services Greenville SC Real Estate, Lake Bowen Real Estate, and Downtown Greenville Condos ,

Jonathan can be reached at 864-640-4295.  

 

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