Last week, the Department of Justice started their own web site for consumers. Among other things, consumers can click on a state (displayed in a map of the United States) and find out if the state offers choices for consumers, and if the real estate agent can rebate 'some or all' of the commission back to the consumer. DOJ and NAR have been locked into a battle of wills on a couple fronts for some time. The DOJ is of the opinion that consumers do not have enough choices in terms of services (or minimum) services that licensees provide, and that 'minimum service' laws are contrary to the consumer's best interests. NAR, and many licensees, feel that real estate is an infrequent transaction, and that consumers are best served by having an agent who has minimal levels of duties and responsibilities to him or her. My observation today, short and sweet: all the license laws we now have were enacted, originally, to protect the consumer. We have lots of choices for consumers in our industry; and I think most agents provide real value for their clients. Our industry is no more perfect than any other, but before we decide that the answer is less responsibility and fewer duties, let's consider what benefits the consumer. Can the average consumer price a home correctly (with or without Zillow?) Can they negotiate? Are they able to complete the paperwork needed for the transaction? Can they protect their own interests? Or, does the average consumer need a fair amount of assistance for a very complicated process with multiple players?
The average consumer should be able to choose which services he/she needs and wants to pay for. There are differing levels of experience in real estate transactions. "Protecting interests" and "filling out paperwork" - that's why we have lawyers and bankers. Most often in residential real estate, a standard state or county contract is used for an offer. Changes to these contracts are subject to attorney review. As far as negotiation goes, I've rarely seen a realtor that steps in to add value to this process. It's terminology that gets thrown around an awful lot, but it seems to be just that...talk.
In either case, you can't generalize what "the average consumer" needs, because we are all at different levels of knowledge and needs. This is why realtor services, much like other professional services must be elective. It's the monopoly-like powers of the NAR that have forced consumers to pay more for real estate transactions than they should. Keep sticking together, keep running from change and progress and keep telling yourselves that the majority of consumers and the U.S. government are all wrong. In the end, our anti-trust laws and our free market place will dictate and pass you by. Maybe instead you should observe, adapt and understand that if you reduce your own services and costs when necessary you'll be party to a greater number of transactions and still be successful in your chosen profession.
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