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RE: FTC - DOJ just release study

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Tom Hathaway, Licensed Real Estate Broker, TN

Date: May 10, 2007, Number of Replies: 9

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This is a new topic.

The FTC - DOJ last week released a new study they completed concerning competition in the real estate industry. I understand it will be one of the stories on an up coming 60 minutes new show. I wonder what others here on RT think of the results of the government study.

Tom Hathaway

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Ann Cummings Licensed Real Estate Broker

Date: May 10, 2007

From: Tom Hathaway <TBATBA@aol.com>
< The FTC - DOJ last week released a new study theycompleted concerning competition in the real estate industry.�I understand it will be one of the stories on an up coming 60minutes new show.� I wonder what others here on RT think ofthe results of the government study. >

I think they're all crazy as bed bugs, and WAY off base in their findings. How's that for a short to the point answer?

Ann Cummings
RE/MAX Coast to Coast
Portsmouth, NH
Servicing the Coastal Areas of NH & Southern Maine
www.AnnCummings.com

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Laurie Furem Licensed Real Estate Agent, Cumming, GA

Date: May 11, 2007

From: Tom Hathaway <TBATBA@aol.com>
The FTC - DOJ last week released a new study theycompleted concerning competition in the real estate industry. I understand it will be one of the stories on an up coming 60minutes new show. I wonder what others here on RT think ofthe results of the government study.

I've never been able to figure out why anyone would advocate the concept of no minimum service(s). How does this help to inform the consumer and insure that at least a minimum of fiduciary responsibility is involved? I think their "findings" degrade our profession. How many other professions would be asked to rebate a portion of their income? To sum it up, I think their results are "horse pucky." :)

Laurie Furem
Keller Williams Realty Community Partners
ABR, ACRE(TM), e-PRO,(R), JIM
www.lauriefurem.com
www.metroatlantahomesgroup.com
mailto:laurie@lauriefurem.com
Servicing North Metro Atlanta
(770) 597-6373

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Tom Hathaway Licensed Real Estate Broker, TN

Date: May 12, 2007

never been able to figure out why anyone would advocate the concept of no minimum service(s). How does this help to inform the consumer and insure that at least a minimum of fiduciary responsibility is involved? I think their "findings" degrade our profession. How many other professions would be asked to rebate a portion of their income? To sum it up, I think their results are "horse pucky." :)

Laurie Furem

Laurie, Our own associations, with the help of most state real estate commissions are the ones who opened the door to removing minimum services level for the first time back in the mid 90's when they got the common law of agency abrogated. The common law of agency was the gold standard for not only providing minimum standards to the consumer, but the common law of agency was what the regulators used as their enforcement mechanism in the industry.

When the Common Law of Agency was replaced with contractual agency where each and every broker could control the level of service (liability) that they provide the consumer, it opened the door for discount broker to enter the market. Suddenly these discounter broker began providing extremely limited services such as MLS entry only, or maybe with a few other inexpensive services like providing forms to the seller.

Once the discounters entered the market the real estate industry began looking for ways to eliminate that threat to the commission structure that has been in place for years by getting states to pass new minimum standards. The Feds saw through what was going on. First Realtors wanted to do away with the long established required minimum services but wanted to continue charging the same price to the consumer. Next came the discounters, charging much less. Then came organized real estate wanting to reestablish just some of the minimum standards (only enough to cut out the discounters). Now the government is stepping in and saying, wait a minute, you wanted to eliminate standards and that brought in significant price competition, so you are going to have to live with it.

This is merely a case where one must be careful what they wish for, they might just get it, and they might not like the results. Often NAR does not look down the road and figure out what the unintentional consequences may be of their actions. Sometimes thsoe consequences are far worse than the immediate problem they are trying to solve.

Tom Hathaway

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Ed Hain Licensed Real Estate Broker, Walnut/Diamond Bar, CA

Date: May 12, 2007

Laurie, The FTC report does not advocate one business model over another. In a nutshell it says the consumer should have all options -- from full representation to none -- open to them. You agree with that, don't you? And, hard as it may be to fathom, some consumers don't want our fiduciary care. Some of them them think they are fully capable of working out details fo transacting property on their own with the involvement of Realtors(r). All these people want is listing access to the MLS. That's where I tend to draw the line. Subscribers (that's us) pay for the maintenance and use of the MLS in our businessess. It's a tool by created by us for use by us. Giving the public free access to the MLS or "listing only" access to it for a minimal fee should not be permitted. Let them use Zillow or Tulia or any of the others, but not OUR MLS. Finally, if a broker wants to rebate a portion of the sales commission to the buyer, so what. That's his/her business and should be of no concern at all to anyone else. Best Regards, Ed Hain

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Lenn Harley Licensed Real Estate Broker

Date: May 13, 2007

Subscribers (that's us) pay for the maintenance and use of the MLS in our businessess. It's a tool by created by us for use by us. Giving the public free access to the MLS or "listing only" access to it for a minimal fee should not be permitted. Let them use Zillow or Tulia or any of the others, but not OUR MLS. Finally, if a broker wants to rebate a portion of the sales commission to the buyer, so what. That's his/her business and should be of no concern at all to anyone else. Best Regards, Ed Hain

======================================

HERE, HERE! ! ! ! !

Real estate is the only industry that I can think of where the government is making a
concerted effort to take our valuable property, our listing information and GIVE IT
away.

Oh no, I remember another case where the government, the Department of Justice
in fact, stole software from a vendor. Look it up. INSLAW vs. DOJ. The bankruptcy
judge that heard the case after the DOJ put Inslaw into bankruptcy termed the DOJ
actions "lies, trickery and deceit".

Our government at work. That was good ole Ed Meese.

Lenn Harley
With an institutional memory

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Peter Macdonald Licensed Real Estate Broker, Ridgewood, NJ

Date: May 13, 2007

<..the government is making aconcerted effort to take our valuable property, our listing information and GIVE IT away.> It seems that the MLS is being "eminently domained" Respectfully, Peter Macdonald RE/MAX Property Paramus NJ WWW.RealEstateFact.Com

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Christina Ethridge Licensed Real Estate Agent, Post Falls, ID

Date: May 13, 2007

The DOJ must be extremely stupid. If they 'force' the distribution of the MLS data - don't they get that the MLS data will no longer exist? They will force the hand of agencies to regress back into the days of no MLS, no shared data.

Believe me, anyone who thinks large companies won't do this to protect their data is just plain stupid (or delirious).

Their claim is that buying airline tickets or booking hotel rooms was so easy and that buying a house should be too. Yes, spending $500 vs. $500,000. Such a close comparison.

Christina Ethridge
Marketing and Research
North Idaho Dream Team
208.769.9464 * 610.639.4735 cell
About North Idaho www.nidt.com

---------- Original Message ----------------------------------
From: RealTalk <Mac@RealEstateFact.Com>
Reply-To: RealTalk@RealTown.com
Date: Sun, 13 May 2007 11:26:38 -0700

..the government is making a concerted effort to take our valuable property, our listing information and GIVE IT away. It seems that the MLS is being "eminently domained" Respectfully, Peter Macdonald RE/MAX Property Paramus NJ WWW.RealEstateFact.Com

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Thomas Early

Date: May 15, 2007

The FTC - DOJ last week released a new study they completed concerning competition in the real estate industry. I understand it will be one of the stories on an up coming 60 minutes new show. I wonder what others here on RT think of the results of the government study.

I've never been able to figure out why anyone would advocate the concept of no minimum service(s). How does this help to inform the consumer and insure that at least a minimum of fiduciary responsibility is involved? I think their "findings" degrade our profession. How many other professions would be asked to rebate a portion of their income? To sum it up, I think their results are "horse pucky." :)

Laurie Furem
Keller Williams Realty Community Partners
ABR, ACRE(TM), e-PRO,(R), JIM
www.lauriefurem.com
www.metroatlantahomesgroup.com
mailto:laurie@lauriefurem.com
Servicing North Metro Atlanta
(770) 597-6373
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tOMe

Thomas A. Early, Master CEBA
425 W. Schrock Rd.
Westerville Ohio 43081
Serving the Greater Columbus Ohio area
mailto:TomEarly@BuyersBrokerage.com
http://BuyersBrokerage.com
100% Buyer Representation 100% of the Time
Past President of the National Association of
Exclusive Buyer Agents (NAEBA) http://NAEBA.org
NAEBA: 1-800-786-1570
Buyers Brokerage 1-614-890-2722

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Linda Grissette Licensed Real Estate Broker, St. Charles, MO

Date: May 21, 2007

If NAR and State Assoications had not stuck their nose into legislation designed to eliminate online competition the FTC and the DOJ would not have awakened to these issues! When an industry strong arms their state legislators in attempts to eliminate competition, it is wrong and that is exactly what we have done.

tOMe,
Sometimes you like to re-create the facts, That may have happened in some cases, but in the case in Tulsa, it was because an agent from another company said to an agent of a discount company something to the effect of: "I don't know how you make any money, no one ever shows your listing." Yes, a stupid person implied there was a conspiracy to boycott a discount company. And the discount company called in the FTC and DOJ. We have to be careful what we do and say. I didn't read the whole report to see if this case was mentioned in the report, but this is one of the time that the FTC and DOJ have investigated us. I know because I am a member of the effected MLS...I just haven't heard of any results (if any).

Linda Grissette, JIM, GRI, LTG, ePRO Certified
Broker, VIP Real Estate Group, Bartlesville, Oklahoma
Licensed in Oklahoma and Missouri Linda@VIPRealEstateOK.com
http://www.VIPRealEstateOK.com http://www.RealEstateDirectReferral.com
Check out my products for real estate professionals at
http://www.RealEstateMarketingHelp.com

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