“Discount” brokerages taking hits

Earlier this year, a knockout looked possible for discount REALTORS® everywhere once the Justice Department joined in the fight against the National Association of REALTORS®. But the WSJ’s James R. Hagerty says the discounters’ noses are bloodied by recent minimum service legislation sweeping the nation and scores the latest round in favor of traditional REALTORS® (hat tip: RealtyBaron)

Realtors have taken some knocks lately in Washington, where antitrust officials accuse them of trying to stifle cut-rate competition. At the state and local level, though, real-estate trade groups are fighting back — and in many instances prevailing.
At issue is the proliferation of discounters offering lower fees on home sales than do traditional broker firms. In the past year or so, half a dozen states have imposed laws that require real-estate brokers to offer a minimum level of services, whether customers want to pay for them or not. Such hurdles could undercut the discounters’ business model.
In a further blow, some local Realtor groups are imposing rules that make it harder for discounters to get their listings on national and regional Web sites. Even some discounters’ advertising claims have come under attack.
What do you think about this?

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1 Comment

  1. native July 22, 2005 at 10:41

    You get what you pay for. I know many people that have been very unhappy with the services they have received from “discount” real estate brokerages. Their agents are spread too thin and do not have a big incentive to sell houses quickly. It is like going to k-mart. You can get what you need but very rarely are you happy with the service provided.

    I would rather buy or sell a home with someone who really has an incentive to make me happy.