NAR Responds to 60 Minutes' May 13, 2007 Segment

NAR Responds to 60 Minutes' May 13, 2007 Segment

CBS News Magazine Show Misses the Mark May 14, 2007 -- In the world of political campaigns, it's a standard ploy to set the stage with an empty chair when one candidate refuses to debate his opponents.

The CBS show 60 Minutes gave the NATIONAL ASSOCIATION OF REALTORS® the empty chair treatment in a May 13 segment that examined the impact of online brokerages on the real estate industry. The show featured interviews with a representative from the now-defunct eRealty and the president and CEO of Redfin, but no one from NAR, even though NAR twice offered and prepared Association spokespersons for interviews with Leslie Stahl. It was CBS that made the decision it would rather interview our opponents and let them make unanswered -- and inaccurate and unfair -- accusations about REALTORS® and NAR policies.

The one-sided journalism and egregious errors served no one well, especially the once-vaunted news magazine show. NAR staff spent nearly a year working with CBS, briefing producers on the issues involved. The producers attended the REALTORS® Conference in New Orleans and met with NAR's legal counsel for half a day in Chicago. Yet, still the segment was full of major errors.

NAR is in communication with 60 Minutes about its unbalanced reporting and presentation of misinformation and will be sending the CBS network a letter demanding an opportunity to correct these errors and misrepresentations.

Here are some examples of the misinformation:
Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends.

Error: NAR is the industry's "governing body."
Fact: NAR is a trade association. It does not govern the industry.

Error: In 2003, NAR issued new rules of its own that threatened to block Internet discounters' access to the MLS.
Fact: The Virtual Office Website policy did not block access to MLSs for discounters or any other brokers who are members of the MLS.

Error: The MLS is the database that lists virtually every home for sale in the country.
Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases" but private exchange of offers of cooperation and compensation between real estate brokers.

Error: Eight states have "minimum service laws" that require REALTORS® to provide a level of service many Internet discounters can't afford.
Fact: "REALTOR®" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

Error: The brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates.
Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

Other key points 60 Minutes misrepresented or overlooked:

• NAR supports all business models and favors none. Our 1.3 million members include REALTORS® who work on a full-service basis, as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters. We think it's great that consumers have a choice today.
• The real estate industry has harnessed technology for the benefit of consumers and will continue to do so. Real estate is both high-tech and high-touch, so can be enhanced by both electronic and personal interaction.
• There is no such thing as a "standard commission." Commissions are negotiable and prices vary. The fact is that commission rates have decreased 16 percent from 1991 to 2004 (source: Real Trends).
• The real estate business is unique in that competitors must also cooperate with each other to ensure a successful transaction, and MLS systems facilitate that cooperation. The first MLS was created more than 100 years ago as way for brokers to share their listing agreements with each another in hopes of procuring buyers for their properties more quickly and efficiently than they could on their own.
• The MLS is a tool to help listing brokers find cooperative buyer brokers to help sell their clients' homes. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems, fragmenting rather than consolidating property information.
  Effective as of May 14, 2007
  Last Published May 14, 2007
  
  © Copyright NATIONAL ASSOCIATION of REALTORS® I Headquarters: 430 North Michigan Avenue, Chicago, IL 60611 DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500

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Movers Beware!

We recently had a client who has had an unfortunate experience with his moving company. His moving woes have lead me to add this warning to our blog.
We have many out of state buyers moving into our area and all are faced with choices on how to get their possesions moved safely, securely and at a cost that doesn't rival the purchase price on their new home.
Being Clark Howard fans, we often listen to his radio show and had written down a website that he had recommended. It is www.moving.org and is a MUST to anyone who needs to move their belongings whether it be across country or down the street. There are many costly pitfalls that can be avoided if you do your research.
Some pointers:

> Make sure the mover you choose is certified
> Read the estimate thoroughly and ask questions
> Do NOT sign any paperwork that is incomplete, there is nothing stopping additions after you have signed.
> Make sure you understand your options when it comes to insurance. If you have expensive furniture, it is a good idea to pay for extra insurance - the 'free' insurance will not be sufficient to repair/replace expensive items.

Moving is a stressful time, plan ahead, don't rush and be prepared!!

Home Inspections - To Have or Not To Have

We always recommend that our buyers have a home inspection done, even if they are buying a new construction property. Buying a property, whether it be for personal use or as an investment costs a lot of money. It makes sense that you want to know as much as possible about it. In the market we have now, it's also a good idea for sellers to have a home inspection done at the time they list their property for sale. Having all repairs addressed before any buyers even step foot onto the property, can give the seller peace of mind knowing that there shouldn't be any 'last minute surprises' that can undermine the sale.
The more buyers are informed about the property, the smoother the transaction will be.
If the buyer is having an inspection, they should ask the sellers and inspector if they can be present during the inspection. This way, the buyer can see first hand any items that may appear on the report and discuss with the inspector their importance.
There will always be something on an inspection report, but they do not have to be deal breakers. Be informed and then make a decision. We always refer to the inspection as the second negotiation point.
As a footnote: Read the contract - just because an item appears on the inspection report, does not mean the seller is required to have it repaired. Only items covered in the contract are required to be repaired or have a provision for.

Welcome!!

Welcome to our real estate blog, we hope that you will find it interesting and beneficial. We will add posts whenever we come across valuable information that will be of interest to anyone who is in the market to either purchase or sell real estate.