Monday, June 04, 2007

Home Buyers Not Getting Benefits of Internet Use?




WHaaaaat? Are you kidding??? The article below just makes my blood boil. Everyone on earth seems to be looking for ways to reduce Realtors' commissions. Everyone on earth seems to think our jobs are soooo easy and we are soooo overpaid. The people that write these stories are idiots. Realtors deserve every dime they earn. I won't go into the big debate here...if anyone wants to call and chat then please do. The thing that the Internet has changed in Real Estate is that it has improved the process of searching for homes. And that is a good thing for the public, but that doesn't make a Realtor work less, and that doesn't make a Realtor less liable in a law suit. Does it shorten the process? Not really. It just enables the public to see more homes before they make a decision. It has truly opened up the process so people can weed out more homes to find what they want. Most of my buyers use me to look at 30-40 homes with me before they make a decision. Is that easy to do? It may look easy being performed by a professional, but it isn't. BUT it certainly beats the silly books that agents used to use to get information for buyers. Does it mean that Realtors should be paid less? Are you kidding???


One final comment on discount brokers, and losers that need to rebate commissions to get business because they don't have any...if they were so great these days then why doesn't everyone use them? Why hasn't their market share grown in the last 5 years? Because they DON'T GET THE RESULTS OF A TRUE PROFESSIONAL REALTOR, and everyone knows it.





By CHRISTOPHER S. RUGABERTHE ASSOCIATED PRESS


WASHINGTON - State laws and real estate agents’ business practices are preventing consumers from getting the full benefit of the competition that the Internet was expected to bring to the real estate industry, federal regulators said Tuesday.


In a new report from the Federal Trade Commission and the Department of Justice, regulators said that discount brokers and other rivals to traditional agents have been limited in their ability to use the Internet to reduce fees and improve service.


The Internet now is a more important tool than yard signs for advertising homes for sale, the report said. In 2006, 80 percent of home buyers used the Internet while looking for a house and only 63 percent who said they looked for yard signs, according to a study cited in the report.
Yet, the report says the ‘‘sweeping benefits to consumers as cost savings and service enhancements that the Internet and other technology advances has brought to other industries’’ has not occurred in real estate. The report cited outdated state laws and business practices that hamper consumers from saving more money and time while looking for a home to buy.


A sharp increase in real estate agents’ fees - brokers earned $60 billion in commissions in 2005 - reflect the run-up in residential property values and underscore the importance of competition, the report said.


The median real estate agent’s commission increased 25.5 percent to $11,549 between 1998 to 2005, the report said. The FTC and DOJ called for more study of commission rates and fees and how they are affected by housing market conditions and regulation.


Technological innovations that would improve competition are available, the report concluded. For example, fee-for-service brokers offer specific services, such as listing a house on an online multiple listing service, for a flat fee.


Discount brokers provide start-to-finish services but offer rebates or price reductions on some services. Yet some states still ban rebates in real estate, whether by law or regulation, though not Colorado. In addition, some real estate groups discriminate against fee-for-service listings by keeping them off national Web sites.


FTC and DOJ recommend that states repeal the laws and regulations that limit competition, and both agencies are doing what they can to counteract anticompetitive behavior in the business.
Pat Combs, president of the National Association of Realtors, said the real estate industry is ‘‘fiercely competitive.’’


To utilize the Internet to search for homes, go to http://www.coloradodreamhomes.net/ to search the Denver MLS yourself. Then call a Realtor to SAVE YOU TIME and show you 40 homes...but don't expect him to get paid less just because you started your search on the Internet without him!

This Blog is dedicated to Parker Colorado Real Estate, Parker Colorado Homes, Elizabeth Colorado real estate, Elizabeth Colorado homes, Franktown Colorado homes, Franktown Colorado real estate, Lone Tree Colorado real estate, Lone Tree Colorado homes, Highlands Ranch real estate, Highlands Ranch homes, Castle Rock real estate, Castle Rock homes, and metro Denver Colorado real estate property listings. Search the Denver MLS directly for properties and homes at http://www.coloradodreamhomes.info/ and access a huge real estate resource at http://www.coloradodreamhomes.net/

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