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Saul's Notes

Blog by Saul Klein
San Diego, California

A collection of notes and observations by Saul Klein, CEO of Point2 Technologies and InternetCrusade.

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Saul's Notes

June 2006

Real Estate Professionals Have Rights Too

Jun. 18, 2006
Categorized in: MLS Issues

From a recent NYT Article - Commission Accomplished:

"For starters, this legislation should make clear that multiple listing
services must provide all properly licensed brokers access to the
marketplace on equal terms. Moreover, while individual states are the
primary regulators of real estate markets, this legislation should enable
the Federal Trade Commission to monitor and pre-empt laws that are intended
more to protect Realtors from new competition than to protect consumers from
possible abuses by discount real estate agents."

It drew this comment: Let's face it guys, aren't we all fed up with this "protecting our data"
nonsense? Who are we protecting it from, the KGB? I totally agree with the
author that all properly licensed RE Professionals should have access to at
least all listings in the state they are licensed in. Just imagine how this
should register with the Seller: "Mr. Seller, I want you to understand that
your listing is very well protected, in fact only a few members of one board
in our county will see it. Isn't it just great?"

Saul's response:

You should have the right to protect the value that your listing contracts bring to you.

You should have the right not to let your listing contract value be used to put you out of business.

You should have the right to charge whatever you want to charge.

You should have the right to list buyers only if that is your choice.

You should have the right to go out of business if no one wants to work with you because the cost of doing business with you is greater than the value you bring to the consumer.

Listing contracts have a cost to create...stated here many times before. The critical mass created by the money and work of brokers and their "agents" (lower case) should not automatically go to the benefit of a FSBO who does not want to hire a broker but who wants to use the eyeballs captured by the broker.

A broker who wants to participate in an MLS, which is for brokers and not consumers, should be allowed if the broker agrees to play by the rules...ethics, etc.

This article may be well written, but it shows an ignorance of what it takes to sell real estate.

What is a discount if there is no standard commission? That statement right there alone shows a bias and ignorance of the writer of that op ed piece.

Saul

 

Group Communication - http://RealTownBlogs.comgroupcommunication

Jun. 16, 2006
Categorized in: Communication
Tagged with: communication, listserv

Hi everyone,
       
Listserv is a Trademark (like Kleenex) and if you look through the e-PRO
course, you will see we always refer to it in proper noun format...Listserv
and not listserv. In the e-PRO glossary in the course we define a LISTSERV
as:
       
>>
Listservs/Mailing lists - Those mailing lists in which the participants
share a common ground (same business, etc.) and they come together through
e-mail discussions using technologies like Listserv(R).
<<

Webopedia says:

>>
A LISTSERV is an automatic mailing list server developed by Eric Thomas for
BITNET in 1986. When e-mail is addressed to a LISTSERV mailing list, it is
automatically broadcast to everyone on the list. The result is similar to a
newsgroup or forum, except that the messages are transmitted as e-mail and
are therefore available only to individuals on the list.
<<

The Trademark term LISTSERV is currently a commercial product marketed by
L-Soft International.  

We are often asked "what about Internet Bulletin Boards and
Forums...wouldn't they be better and easier than an e-Mailing list?"

The most effective form of internet communication is anything "pushed" at
people...e-mail, which is why mailing lists (LISTSERVS), even though old
technology, are still the best way to consistently reach the most
people...most people go to their "inbox" multiple times a day.
       
Using mailing lists for MLS beta testers has been effective. They are also
effective as a one way communication flow, telling committee members what
happened at a meeting. To get a good multi way conversation going requires a
"critical mass" of participants or/and a good moderator or "electronic
publisher."
       
Forums/Bulletin Boards have not done well in the industry...web based is
still too much work for most REALTORS. Blogs are catching on slowly, and
with our including blogs in the e-PRO course, more and more REALTORS will
begin to use them.
       
Blogs are great for one way communication, such as an association
e-newsletter.
       
If you haven't been there, go to http://RealTownBlogs.com

You can set one up (as many as you like) for free for your association. Your
members can also set up blogs for their own use, again, at no charge...so
help us let everyone know. I recently wrote an article on blogging which I
will post in its entirety here in the next few days.

Saul
      
Saul Klein
President, InternetCrusade

Tax law is not fair

Jun. 16, 2006
Categorized in: Tax and Financial Planning
Tagged with: tax

A RealTalker writes:

>>
If you find a way to take it with you, be sure to let us know how.
Meanwhile, is the government entitled to a portion of your income?
<<

Not from the government's perspective.

The government thinks it is entitled to ALL of your income.

The government believes it is being gracious if it lets you keep some of the government's income...it is not your income. Whatever gave you that idea? It is the government's income. Your deductions are considered expenditures to the tax code creators and writers...expenditures.

The purpose of the tax code is not only to facilitate the collection of
revenue to run the government, the purpose of the tax code is also social and economic engineering. This is not a judgment...it just is.

Estate Tax percentages amount to nothing more than confiscation. You would think that the greater the portion of one's estate allowed to pass to one's heirs, the more encouraged some people would be to work harder and more efficiently for the benefit of their heirs. Confiscatory estate tax rates can be counter productive and a disincentive.

Now, if you want to leave your entire estate to Uncle Sugar, you should have every right to do so and I would support you in having the option to do so.

Having said the above, most of us pretty much agree that the government(s) should be allowed to confiscate some of our hard earned income for the "common good." The question and the disagreement arises over how much, when and for what "common good" should the confiscation be allowed.

The unfairness of taxing income twice has been mentioned...taxed first as income and then as an estate. It may be unfair, but tax law is not fair, and it is not simple, no matter what the politicians try to tell us.

And, it never will be fair and simple. Tweaks and small changes result in huge revenue increases for the government, and usually with little outcry because the tax law is so complex, most people don't want to think about it.


In 1984 most deductions were taken from taxpayers and the marginal rates were reduced to 15% and 28%. A few years later, with our deductions gone, the government began to raise marginal rates again. You try to tax plan and then the next year congress changes the rules.

We say it is a "voluntary system." But the most powerful enforcement agency of the US government is the Internal Revenue Service.

Having read this, you might have the idea that I am against taxes. That, in fact, is not the case. And I see no solution that would not incur a stream of unintended consequences. I do know this...by paying attention to taxes and tax laws, you can make sure you pay no more than that which the law requires you pay. You'd be surprised how many people pay more than they are obligated to pay because they lack understanding of the tax law.

"Anyone may so arrange his affairs so that his taxes shall be as low as possible. He is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes."

Justice Learned Hand

Saul

Saul Klein
President, InternetCrusade