MSN.com and real estate issues ran the gamut today. I don't normally read MSN for Industry news. First up was an article that was non-controversial, with a 'grabber of a headline: What realty agents won't tell you. Schools and neighborhood safety, how these issues factor into neighborhood desirability, and how Realtors® do not normally offer opinions on these issues (I know I don't). My normal comment on safety is that everyone's ideas about safety are different, some will say it's one of the safest cities to live in and others will be upset if even one murder occurred in the neighborhood in question. So I do what the article suggests, send them to the authorities for answers. Here in Cleveland, we send them to the police districts for data. Of course I tell them to call on the non-emergency numbers!
The schools issue is a big no no, we are not allowed to advertise that a specific school is near a home. Steering is not something agents should participate in. We have quite a few laws already posted about here on AR so I won't belabor it. MSN suggests you go to the National Center for Education Statistics website so you can view data like: student-to-teacher ratio. They also recommend the School Matters website sponsored by Standard & Poor's (I didn't even know they were still around!) They also say something I heartily agree with: if you are moving into a new area, tour the school. Find out about class sizes, teachers, class offerings. The truth is, there are a ton of opinions about schools.
There are people like me who love big schools because (on the High School level) they usually have a broader spectrum of classes available as electives. The Cleveland Heights High School for example, offers classes on eclectic but wonderful subjects like The Holocaust. Large schools can have a larger selection of languages to learn. In Cleveland, you can take Arabic, which is certainly a must should you want to go on to do FBI work or do a major in International Studies. And of course smaller schools offer the advantage of a better student- to- teacher - ratio. The article did point out that this was all related to Fair Housing Issues.
The second article had an equally incendiary headline! Embattled Real Estate Agents Play Hardball. (Thus the 'boxer' graphic). You guessed it, they were not talking about baseball. You can read the article here. It's really a discussion about discount brokerages vs full service, the advantage and disadvantage to both. Of course I did not see one quote or item of proof that agent's were playing hardball but what do I know, I'm just in the industry. They did focus a bit on the FTC/MLS issues. The most intriguing piece of information from this article was a quote from an agent who said
"But in the future, large real estate firms might shift to a salary-plus-commission model in an attempt to compete more effectively. That would "weed out" less-effective agents, Nunnenkamp says, and allow traditional firms to charge a lower commission. "After a long time of things operating the standard way, there's a new wave coming, ...."I have to admit, I know of one realty company in Washington DC dealing (I think) only with new construction of condominiums. They pay salaries. Is this a new phenomenon or is it something you are already seeing in your areas? Inquiring minds want to know.....And that concludes my book er, media report for the day.
Some AR posts on these issues:
Dave Rosenmarkle: Are You Guilty of Steering?
Michael Mackey: Fair Housing Doesn't Play Fair
Jim Lee: Become A Junior G Man
Marianna Wagner: Don't Be An Ignorant Fool
BB Broker Bryant: Monopoly My A%^*&^
Lisa Dunn: The Boomers are Coming
Brian Brady: Are You Ready for the Banks?
Ines H-G: Salaries versus Commissions
Peace Out - 3C
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