Special offer

Asleep at the wheel....and you're just along for the ride.

By
Real Estate Agent with Century 21 Redwood DC-SP98366576

Much has been written about the current lawsuit that the Department of Justice filed against the NAR. A search on a multitude of blogs will reveal that agents across the country are outraged. The lawsuit has agents on both sides of the issues flaming each other. Business models are being scrutinized with most people claiming their way is the high road.

Bitter acromony has caused friends to become foes.

The lawsuit was announced with a press release that impart read, "WASHINGTON, D.C. - The Department of Justice's Antitrust Division today filed a lawsuit against the National Association of Realtors (NAR), challenging a policy that obstructs real estate brokers who use innovative Internet-based tools to offer better services and lower costs to consumers. The Department said that NAR's policy prevents consumers from receiving the full benefits of competition and threatens to lock in outmoded business models and discourage discounting."

For just a few minutes, can you set aside your thoughts regarding the merits of the lawsuit? There is a deeper issue that I have not seen addressed. I am not all seeing, but everything that I have read has dealt with either "how dare they" or "it's about time they stepped in." There are times, when I support the impetus of the action and there are times when I feel like "Aren't there other issues that may need the attention of the Department of Justice?"

Let's go back to the beginning. Let's go back to life before the lawsuit. The industry was changing. There were new business models and practices once thought permanent were being revised. Since the inception of brokerage, the amount charged to a consumer has been negotiable. Nothing is sacrosanct. Nothing is written in stone. The fact that decades went by one after another with little, if any, change to the amount the majority of brokers charged did not mean that the amount was law. It just happened to be the way things were done.

Remember, until very recently (when one considers real estate law in this country is only a little over 200 years old.), everything was on paper. The contracts were on paper. The listings were on paper. It was not that long ago that each broker maintained their own listings in their own office. The NAR is only 100 years old.

Then things begin to change. The advent of the world wide web opened doors that did not exist before. There became new ways to practice our craft. There became new ways to advertise our services. Being enteprenuers, some members seized them and a new breed of agent was born.

Multiple models were developed and the competition for business became mult-faceted.

Little pocket wars flared up in different markets. Sides were taken and no one stepped in to assist in resolving the differences.

Enter the Department of Justice.

OK, well, where was the NAR? Why did differences reach the level that created the need for the Department of Justice to step in? The Department of Justice got involved with the murders of civil rights workers in Philadelphia, Mississippi. The Department of Justice developed a case against the Watergate conspirators. The Department of Justice deals with crimelords. The Department of Justice does not get involved until the appearence of impropriety is over whelming.

What the hell was going on at the NAR? Who was in charge of taking the pulse of our community and dealing with differences. Why was the increased usage of the internet such a shock? If agents across the country saw the many uses of the world wide web, how could those that represent us be so unaware of the evolution of the practice of real estate and marketing of that practice?

The people that we are paying hard earned money in the form of dues, have been working hard to come up with a policy about who and who can not use the word "Realtor". They have developed regulations regarding the comparative font size to use with your phone number and your broker's phone number. They have decided that having the fair housing symbol has to be on your website. The list of do's and don'ts gets longer every day.

We still go sued (that's right, we are the NAR).

Rather than explain to the membership, the reason behind their apparent incompetence; they have chosen to rally the troops around "why are you picking on us?" They have chosen to obfuscate their culpability. It would seem that it is much easier to point the accusatory finger at the Department of Justice than it would be to explain to us..........HOW DID THIS HAPPEN?

We do not operate in a vacuum. The newest of rookies can tell you about the different models that exist. Any agent in an active market can tell you about the arguments on both sides of the "discount" pricing. Major brokerages have scripts to defend their side of the equation. Why was the NAR out of the loop?

The internet is not going away. New and inventive methods of using it to advertise, support and in some cases manage a business are being developed everyday. Everyone in the damn free world knows that. Is it too much to expect a major trade organization might be aware of it as well???

Who was asleep at the wheel? We are just paying dues and we are just along for the ride. The problem is that whatever is decided by the lawsuit, will impact each of us.

The prisons across this country are filled with people that :

  1. claim they are innocent, or
  2. feel that the got a bum trial, or
  3. are awaiting the results of an appeal.

There are not many of them that are surprised that their apparent behavior brought the attention of the authorities. They do not argue that "it wasn't really tax evasion it was just creative book keeping" or "well, nobody told me that I could not use corporate funds in that fashion" or "no one said I couldn't just take the money." Most of them were aware that their behavior would bring the scrutiny of the authorities. If un-educated criminals are aware of the legal system, shouldn't the high profile attorneys working for the NAR be a little bit aware of actions that might bring the scrutiny of the Department of Justice?

The NAR fights the lawsuit with their number one tool........the spin doctor. They share the case is without merit. They do this while associations across the country are settling with the authorities and changing rules daily.

The NAR should have seen the problems as they arose and dealt with them swiftly. It is a new day and we, as members expect that the organization that represents us will be proactive and ahead of the curve as our industry morphs into the 21st century models. Technology is changing rapidly and old school paralysis by analysis is doomed to fail.

Rather than continue with press releases about the horror's of being scrutinized, I want the NAR to deal with today...today and understand we must also be ready for tomorrow....today.

I think they were asleep at the wheel and I want to know what they have done to rectify that operating procedure. Wouldn't you like to know that you are paying dues to an association that is at least functional?

or..........are you just along for the ride?

Comments(4)

Rick Fifer
Vintage Homes Realty - Tampa, FL
Broker/Owner, Vintage Homes Realty

I pay my dues to the NAR monopoly because I have no choice.  I can't function in this business because they control all the levers.  They "own" the word "Realtor" which I think is a bad joke.  To the general public "Realtor" is to real estate what Accountant is to accounting.  The national CPA organizations have not tried to monopolize the word Accountant and force everyone else to use bookkeeper.   As a someone who spent 20 years doing social work, the NASW (National Association of Social Workers) never tried to own "Social Worker".  I was still able to function as a Social Worker without being a member of NASW.  Try functioning in the real estate industry without joining NAR. NAR has too much power.  Any other industry or trade group the controlled so many access points to a given industry or trade would have long ago been humbled with anti-trust sanctions.

Yeah when I joined the board I watched the anti-trust video.  I walked out the door and immediately encountered "Realtors" who openly discussed with other "Realtors" commissions and who's listings they wouldn't show because they were discounting, or the customers they told that everybody charges "x%"  So much for the anti-trust training.

The Justice Dept. broke up AT&T. Maybe it is time to do the same with some other monopolies.

Nov 09, 2007 01:19 AM
Cheryl Johnson
Highland Park, CA
Right on, John!  Exactly, Rick!  Wish I knew the  answer .... but, I can only repeat the question ... What are they thinking?
Nov 09, 2007 01:22 AM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes

Rick - Thank you for sharing your experience in another industry. You are correct in stating that AT&T was broken up. It seems that after all this time, market forces have allowed AT&T to pretty much put itself back together again. This time with some competition. This did not happen in a vacuum.

There are many issues where the stance by the NAR is in direct conflict with the desires of the membership. You point out some of the areas. If the association spoke for us, they might in fact take a stronger position on the issues that affect us as we actually practice our craft. If the association was doing it's job, they would have negotiated a "level playing field" rather than ignoring that a field exists.

Nov 09, 2007 01:39 AM
John MacArthur
Century 21 Redwood - Washington, DC
Licensed Maryland/DC Realtor, Metro DC Homes

Cheryl - Truth be told, they don't have to think. I would not be surprised if the vast majority of the 1.3 million members are clueless as to how to step in and become involved. Most of the members are struggling with a market that is slow. There is a disconnect between the association and the membership. I will continue to raise the issues.

We deserve an organization that supports us. In order to support us, they have to have a scintilla of awareness of our job, our market and the challenges we face every day. I know what I face and I believe that I am aware of the challenges that most agents face.

If we continue to argue over the place setting, we will never actually sit down and eat the meal. We are hungry and I think it is time we discussed the menu and got on with the feast.

Nov 09, 2007 01:44 AM