Competition in real estate? As we know it…

The U.S. Department of Justice (DOJ) seems to think there could be better competition in real estate (see their site: Competition and Real Estate).

What really bugs me… the DOJ says “Consumers can save thousands of dollars”. They even chart the savings of choosing various business models such as flat fee MLS, limited services, and sale by owner. That’s so cool, when I was a kid my dad would tie a string to my loose tooth, the other one to the doorknob. We all know that saves about $100 in dentist visits, but the risk of something going wrong is pretty low (make sure it’s a baby tooth, and it really is loose, and “no brainer”). And I’m sure we’ve all tried some home improvement project so we can save money over what the contractors were quoting… and then later, hired a pro to fix it and re-do it the right way.

What the DOJ forgets to mention on its website is that with bad or no advice, or poor representation, sellers can cost themselves WAY MORE THAN WHAT THEY MIGHT PAY IN COMMISSIONS in the long run! In fact, I know several sellers who made mistakes in their choice of representation, and their poor choices cost them time and money and resulted in a much, much lower sales price – but that’s a separate topic (“overpricing and underselling” sounds like a good title) for a different day. OK, DOJ, how about the rest of the story here?

I encourage every agent to watch what the DOJ and other folks such as the Federal Trade Commission are saying about our business. Decide for yourself whether you agree… but be knowledgeable and ready to address the points with potential customers if they bring them up.

And please encourage sellers and buyers to choose their agent and broker based on professionalism, level of service, and results, not solely based on cost. The FTC has a decent publication that will likely be helpful to sellers, it addresses many of the points (and clarifies misconceptions) that many of today’s sellers need some education on… don’t be afraid to hand it out to a prospect.

DOJ: “Competition and Real Estate”
FTC: “Competition in the Real Estate Marketplace” and the consumer booklet “Selling Your Home? Tips for Selecting a Real Estate Professional” (pdf)
NAR: “NAR Commentary on DOJ Competition Site“