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Internet-Based Realtors Win Monster Settlement
coondoggie writes "Until today, most Internet-based real-estate brokers were considered second-class citizens, and their clients were left in the cold. But perhaps that will change with today's news that the Department of Justice has reached a proposed settlement with the National Association of Realtors that requires NAR to let Internet-based residential real estate brokers compete with traditional brokers. NAR has agreed to be bound by a 10-year settlement, under whose terms NAR will repeal its anticompetitive policies and require affiliated multiple listing services to repeal their rules that were based on these policies." Here's the whole settlement document on the DoJ's site.
It's just one more example of Internet disintermediation changing economics.
Hard as it may be to believe, there are still a lot of businesses that think this "internet fad" is going away, so seeing yet another major industry be dragged into the 21st century economy is interesting to a lot of folks.
Recursive: Adj. See Recursive.
That's exactly what they're doing. You can almost hear the "(tm)" trademark and the ALL-CAPSness in the word "REALTOR". That's because it is a trademark, and it's NAR's trademark. The generic term is "real estate broker".
Similar cases of trademark dilution have taken place in the past -- do you use a Xerox(tm) or a photocopier? Kleenex(tm) or facial tissue? Likewise, are you doing business with a REALTOR(tm) or just some random real estate broker?
All of which is, as you've surmised, bullshit. Much like used car salesmen, real estate brokers are basically weasels. Because houses aren't identical, they can't be bought and sold like stocks, bonds, or even consumer electronics, so buying a house is more like buying a used car; people have to interact, in meatspace, if for no other reason than to inspect the property, and that invites a whole food chain of people whose only interest in the process is in getting a cut of your transaction.
And as the president of the National Association of Weasels, we'd like to make sure that you do business with one of our WEASELS(tm). Only WEASELS(tm) are members of the National Association of Weasels. Would you risk your family's financial future with mere polecats, skunks, or other poor imitation? Demand professionalism! Settle for nothing less than genuine WEASEL(tm)!
The trademark has worked well for NAW^HR, but this court case is the thin edge of a very big wedge. NAW's de facto monopoly over the WLS data broken, there'll no longer be any advantage to being a Genuine Weasel. Any old weasel can work within the same set of databases, which means that NAW will be denied the fat fees that only WEASELS pay...
Ya, I am a Realtor, if you have a question about homes ask me, my advice is always free.
What exactly do realtors do? Why would I want to use a realtor to sell a home rather than listing the home myself, and what is the benefit of using a realtor to find a home rather than just looking through the listings myself?
I'm not actually planning on buying a home any time soon, but I'd like to know. Usually I prefer researching major purchasing decisions myself, rather than trusting a salesperson.
I appreciate the views that others have of the real estate industry that are similar to what I saw while working as the IT grunt for a small real estate company. And yes, I heard the exact phrase 'the internet is just a fad' and IT was just a waste of money. The babysitting eventually got old for me, and I came to realize that I had to leave, because the people in charge just dont 'get it'. Not in a bad way, just in a 'my grandparents still listen to music on AM radio' kinda way.
There is no other industry I have seen that is so absurdly protectionist in its business practices. And the result of that type of worldview has led some real estate companies to be literal fossilized relics of their time.
This settlement gives me great pleasure to finally see, as the roadblocks setup by MLS are some of the most frustrating I have ever encountered, from the buyers point of view.
Having seen the industry from the inside, I would never have any part of buying or selling a home through a real estate agent. If I see a house thats for sale that I want, I am patient enough to let the rediculous 'listing agreement' expire, and then buy it right from the seller directly. It is amazing how eager people will become to sell to you when they realize that waiting a few months can net them a 7% larger profit.
And what ever happened to that small real estate company, you may ask? Well Caton Commercial spends some of its time showing up to court cases brought against them by various old employees and business partners, and sending out threatening Cease and Desist letters to other old employees.