"60 Minutes" Worth of Real Estate Marketing Advice

Did anyone see the piece on CBS's 60 Minutes about buying and selling homes with discount internet brokers? Well just to let you know there has been a lot of resentment from the full-service brokerage industry, and from NAR, the National Association of Realtors, named in the piece. The following is an article taken from RealTrends.com, a real estate website providing information to industry professionals, which mentions some of the misinformation presented in the program:

"According to the National Association of REALTORS, CBS' show "60 Minutes" gave them "the empty chair treatment" in its May 13th 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.

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

Here are some examples of the misinformation that NAR notes:

Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not six 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 Web site 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 a 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.

NAR expressed disappointment that CBS made the decision it would rather interview opponents and let them make "unanswered - and inaccurate and unfair - accusations" about Realtors and NAR policies. (REALTOR Magazine Online)"

I, for one, am all for technology and tools that will assist buyers and sellers in achieving their real estate goals. However, computer marketing, virtual tours, GPS, and instant messaging will never replace the hands on, face to face, personal attention, that a full service real estate professional can provide a buyer or seller that is making one of the biggest financial decisions in their life.