60 Minutes Of Misinformation

As a realtor, I questioned whether I would write about the 60 minutes segment that aired this past Sunday, but after a lot of spirited debate with colleagues, as well as people outside the real estate industry, I decided that it was prudent to do so. Plus I’m able to put my feelings in writing, which helps to get it off my chest.

As I listened to the broadcast, I was utterly shocked at how biased the segment was, with absolutely no opinion from the other side whatsoever. I was stunned that NAR (National Association of Realtors), although extensively consulted, was not even invited to voice an opinion. It’s interesting that NAR itself encourages and supports every business model, from full service to discount, but does not favor any model over the other, something that should have been addressed. There were many key points that were totally ignored that I thought pertinent.

A FEW POINTS OF MISINFORMATION:

Error: That the 6% commission is, in their words, “sacrosanct”. (They alluded to not only that but also that 6% was the average, which is also not true.)

Fact: Commissions are negotiable, with the average being lower than 6%.

Error: The National Association of Realtors is the “governing body” of the industry.

Fact: NAR is in fact an association within the trade and not a governing body of the industry.

Error: That the MLS is the database listing all homes for sale in the country.

Fact: We do not have a national MLS, although sometimes I think we should. There are a vast collection of both regional and local MLS throughout the country promoting data sharing, cooperation and compensation. They are more of an exchange system, than a strict database.

There were many other salient points that were either erroneous or totally missed, and I found myself to be of the opinion that the whole point of the segment was to promote Redfin, a upstart West Coast discounter utilizing a fixed rate commission structure.