NAR can do more to encourage innovation
Letters to the Editor
By Inman News, Friday, May 30, 2008.Bookmarking Sites
Re: 'Blogosphere reacts to proposed NAR/DOJ settlement' (May 28)
Dear Editor:
This week's proposed settlement between the National Association of Realtors and U.S. Department of Justice does not directly impact Assist-2-Sell because we have always had full, unrestricted access to multiple listing services. NAR's past policies were obviously targeting online real estate brokerages, in our opinion.
We are encouraged by the broader implications of this settlement. We believe it demonstrates that the industry is at least willing to acknowledge that how we buy and sell real estate is changing. We hope this will encourage further innovation and wider acceptance of alternative business practices.
Assist-2-Sell has consistently maintained that any new business model should have the opportunity to prove itself without interference in the form of rules, regulation or legislation that is intended to restrict competition. Many companies, in an attempt to mirror the success of online insurance companies, stock brokerages and mortgage companies, have tried to implement business models that take the real estate agent out of the equation. So far, no one has been successful -- despite millions of venture capital that has been invested. It seems the role of an agent is safe for the time being.
Those who continue to resist change, though, will only damage the industry as a whole. While it's true that the real estate industry has grown technologically over the last five years, despite the ongoing litigation, much more can be done. If real estate brokers and agents want to avoid obsolescence, we must give consumers what they want: Full access to information and resources related to buying and selling homes, and the ability to choose how that information is accessed and acted upon.
We believe NAR can do more to encourage innovation, competition and an improved consumer experience. Thousands of Realtors have embraced "non-traditional" business models. Through them, NAR has the opportunity to better understand why more and more consumers are looking for alternative methods of buying and selling real estate. Perhaps this knowledge will help ensure that consumers realize the true value of Realtors, despite further technological advancements that are sure to come our way.
Mary LaMeres-Pomin and Lyle Martin
Co-founders and co-CEOs
Assist-2-Sell Inc.
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Submitted by Lori Bee , Owner/BIC on June 5, 2008 - 5:18am.
While I agree NAR should encourage innovation and competition, I think the market place already takes care of that for the most part.
The Association also has a huge responsibility in protecting our members integrity and reputation, which is the reason why the term REALTOR(R) came to be in the first place. I don't believe the issue to be one of "restraining competition," as much as protecting the term "REALTOR(R)" and what it stands for - holding ourselves to a higher standard and thus protecting the American Dream and not turning it into a nightmare for consumers.
If these new business models fostered ethics and integrity among it's associates, as well as innovation, perhaps there wouldn't be as much opposition. MUCH more needs to be done to educate the consumer as to the differences in these alternative business plans, and until that happens, there will continue to be confusion.
It reminds me of the advent of buyers' agency - perhaps we will get there some day, but only with agents who are willing to fully explain and disclose how they will conduct their business. Traditional agents often have to go in and pick up the pieces when a customer has misunderstood what they have signed up for. It also puts the agent across the table, at greater jeopardy for liability, as they often times have to go above and beyond to get these types of transactions to close. I believe these scenarios are the real source of many an agents' "resistance."
But why should those agents have to put themselves at risk for these new business models? It's not just about how they advertise on the web or MLS, or that they are afraid of a new business model taking money away from them. The willingness of many REALTORS(R) to do this at their own financial risk, clearly demonstrates their "true value" to the consumer and why we have protected our role within this industry, and not just turned it into online transactions which would put consumers at risk. Most of us are here to HELP people, and not just conduct a transaction, online or otherwise. No computer will ever be able to replace the "human element."
I certainly welcome any and all technological advancements and even new business models. It would be great to find a solution to overcome these obstacles, and we really need to work towards that ---together. Heck, if we overcame some of these issues, I'd probably be one of the first ones "on board" with changing how I do business. I'm a hard core capitali$t, but I also am happy to have the hard working folks at NAR looking out for all of us, and also for the consumers of America.
Respectfully,
Lori Bee - Bee Realty