Wowza, Readers Digest!

A scathing article in February’s Readers’ Digest about the NAR and REALTORS^® in general when it comes to “discount” brokers and how they are treated by other REALTORS^®.

Frankly, I am torn. Not about blacklisting, mind you. I can’t image myself blacklisting someone just because they choose to operate a discount brokerage. I am torn about the concept of discount brokerage. If someone truly is in a pickle and can’t afford to pay a full commission because they don’t have enough equity in their home, or they are experienced to the point that they sell at least one property a year and are well-versed enough in the transaction process that it’s old hat, I can totally understand why they’d want to use a discount brokerage. Change is inevitable and if the public demands it, Realty will evolve with the times.

However, there are at least two reasons to use a full-commission brokerage- #1 Even if you have bought and sold real estate in the past, the average person does not do it often enough to be an expert and could stand to use a good REALTOR^® to hold your hand through a complicated process. #2 The real estate rules change every year, and every year the contracts and regulations are modified to the point that even REALTORS^® sometimes have a hard time keeping up with them, let alone a member of the general public.

The NAR response to the article? “As everyone who has bought or sold a home knows, real estate brokerage is fiercely competitive. Consumers can choose from more than 1.3 million REALTORS® today, including those who work for discount, limited service, or minimal service brokerages. In fact, about one out of every eight members of NAR work for these kinds of firms.

“NAR’s policies foster the interests of all REALTORS® and real estate consumers. We support all business models and favor none.”