NY Houses 4 Sale

NAR, Redfin and CBS in New York?

Last night I received this interesting email from the National Association of Realtors asking Realtors to contact CBS about the '60 Minutes' Special that was aired on Sunday May 13, 2007.  I am not really sure what complaining to CBS would do, but NAR wants us to voice our concern. 

For a year plus that I have maintained this blog, I have rarely spoke about Redfin not because I don't like them or even because I don't think that their model of buying and selling real estate won't work, I just never spoke about them because there are or I should say will never make it in New York.  To be honest with you - I don't even really think that their model of a real estate brokerage will last.  Right now, they are still "fresh" and they are getting alot of press time, but will that be enough for them to stay afloat and surpass the "traditional" brokerage?  In my honest opinion - no, I don't think.  I can't ever see Redfin going head to head with a New York agent.  But - this is not where I would voice my concern. 

I have more to say about this special, which I will do on another post.  Here is a copy of the email.  I am curious to know if consumers watched this and what their thoughts are about the special.   I know alot of people want to contact me through email and that is fine, I am asking for feedback so either way you feel comfortable to communicate with me is welcomed!

Here is the link for the special if you missed it. 

Dear Fellow REALTOR:

I am disappointed and dismayed at the biased story that 60 Minutes aired on Sunday evening. I want to let you know that we've been working to stay on top of this story.

One of the most difficult challenges we face is educating the news media about today's real estate industry. There's no better example than this 60 Minutes show. For more than a year, NAR worked with the producers who put the segment together and offered several spokespersons to be interviewed for the show, including myself. Yet, NAR's voice was strangely and noticeably absent from the segment though CBS gave time to two critics who disagree with our policies on the display of listings on the Internet.

At times, NAR and REALTORS&#174 have often been the subject of less than accurate news coverage. Your association and its professional staff is making every effort to get the REALTOR&#174 message out to the news media. The result is that only a fraction-less than five percent-of the vast news media we receive is negative.

We encourage all of you to contact CBS to voice your concerns -- maybe have some of your satisified customers do the same.

Thank you for your support.

Pat V. Combs
President

Related Articles:

See what other consumers are saying!!!

60 Minutes from a Consumer - A Non- Realtor

Broker Bryant -  RedSpin simply spun!

Laurie manning -  Shame on you Redfin

Lenn Harley - 60 MINUTES - PUBLIC PUFF PIECE BY PURVEYORS OF PUBLICITY FOR THE PERCENTAGE POSSESSED

60 Minutes Segment on Real Estate Biased: Industry Responds : RISMedia

Inman News Blog: What's your take?

NAR: NAR Responds to 60 Minutes' May 13, 2007 Segment

Bill of Rights -

Today Inman News  announced the launching of the Redfin Real Estate Consumer’s Bill of Rights.  Below is the list of ten interesting technical points that they (Redfin) hope to take this to the  National Association of Realtors and MLS' Nationwide. 

1. Choose the services you pay for.
2. Know how your agent makes his money.
3. Know when you are committed to an agent.
4. Know what services your agent will provide.
5. Have an agent that represents only your interests.
6. Know the commission refund you can get before you buy a house.
7. See all the houses for sale.
8. Have an open discussion about a house for sale.
9. See all the information available about a house for sale.
10. Be sure your agent will show your house to everyone.

Now please keep in mind that some of the points may not pertain to the Ny area - right now.  But, as I see it, I think that our MLS trying to integrate the Buyer Brokers and remove the sub-agency totally. 

So as a consumer how do you feel about the Redfin Bill of Rights?  If you understand and want to sign the petition please go right here to do so.

A bit confused?  I would like to suggest a few related sites that will no doubt offer more clarity for you .

• Redfin Launches Consumers’ Bill of Rights at| 3 Oceans -- The San Francisco Bay Area Real Estate Blog.
• The Real Estate Consumer Bill of Rights at Rain City Guide (By Ardell).
• Stand Up and Be Heard at FoREM.
• ..and Greg writes a post at BloodHoundBlog - "A wolf in a sheepskin clothing".

President of NAR - on "The Last Stand of the 6-Percenters?"

A few weeks back there was an article written by Damon Darlin, "The Last Stand of the 6-Percenters?"   - New York Times.  There were blogs all over that were commenting on this particular article because it had a lot to do with the dreaded Redfin.  This article was claiming that Realtors were at the end of the 6% commission ride that we have had for "so long" and how Redfin was changing the real estate industry.  I never commented on this article because Redfin is based out of Seattle and I felt that this article - regarding the 6% commissions, was not taking place in Queens, NY so why stick my nose where it does not belong.  I know Redfin can not survive here in the Big City - I also know that there is no need currently for a "Buyer Broker" in my area.  So, why am I chosing to touch on it now?  Here is the thing, I don't want people to be mislead to think that the buying of real estate is like "Amazon".  That would just be silly.  I want to educate buyers and sellers and make it known that buying and selling real estate is much more than "opening the doors to a house".  I am touching on this now because I wanted to have the letter that was written by the President of NAR, Thomas M. Stevens. 

A Real Estate Agent’s Role

To the Editor:

Re “The Last Stand of the 6-Percenters?” (Sept. 3), about how home buyers are using the Internet to circumvent real estate agents:

Buying a home is not like buying a book, a CD or airline ticket. The Internet’s role in residential real estate is much more like WebMD than Amazon or eBay. It empowers and informs the consumer — which is good for everyone — but it doesn’t replace the need for a doctor’s professional services. Real estate agents provide a valuable service enabling sellers to get the best price for their homes and buyers to find the best home at the lowest price. They are knowledgeable about the community.

The real estate industry has been effectively harnessing the Internet for years, to the benefit of sellers and buyers alike. About three out of four buyers today use the Internet to begin their search for homes, and those using the Internet are more likely to work with a professional than those who do not.

Most real estate agents do good work and earn their clients’ loyalty. Some 85 percent of homebuyers surveyed said they would use a real estate agent again or recommend their agent to another. Homebuyers do see the value offered by their real estate agents. Thomas M. Stevens

Washington, Sept. 6

The writer is president of the National Association of Realtors.

Redfin and discount brokers - wont ever last in NY

Living in NYC - most buyers or sellers don't know what Redfin is or who they are.  Being a real estate agent in NY I can say that Redfin and "discount brokers" - wont ever last in NY or make a huge wave like Redfin has done in Seattle or California.   Its just a fact.  Reading articles after articles about Redfin and "discount brokers" have just about pushed others over the edge.  I read the "Subcommittee on Housing and Community Opportunity", by Glenn Kelman from Redfin.  My first thoughts were "what a baby".  In this testimony he is asking congress to ask the other brokers to "Play Nice".  He is so convinced that his model of business is the first of Internet real estate brokerage and he feels that he represents the buyers and/or the sellers, in a good fashion - because he saves the buyers and/or the sellers alot of money.  He compares his business model to Amazon, stating that buying a home online will be the same as buying a book online.      Furthermore, I feel that Redfin is in "it" for the sake of money and only money. They set out to do real estate sales in volume of sales while they are offering decreased commissions or "rebates" as they put it - they are doing less work - so they are doing what they have set out to do.   

There is no representation that I can see in Redfin's model to me they are no better than a FSBO site that offers a flat MLS listing fee (with a 1% selling broker fee). 

Other articles of interest: 

Dissecting Glenn Kelman of Redfin.com

Mr. Kelman goes to Washington

Discounters, FSBO’s and Redfin - Oh MY! And why they shouldn’t matter

Future of the Real Estate Industry?