After a day-long symposium on competition among real estate brokers
(or the lack thereof), sponsored by the American Antitrust Institute, I
want to:
(1) remind you once again that realtors and legislators are working to
put anticompetitive laws on the books that will stifle innovators and
price compeition in the real estate brokers’ market (see our prior post
and WSJ.com, “Some states now limit price rebates to buyers,” Aug.
19, 2005; post-gazette.com, “Realtor commissions face new pressures,
May 10, 2005) — so let your elective leaders know you object.
(2) point to the recent column by WSJ‘s Alan Murray, “Realtors Fiddle as “soldSign”
Real Estate Burns Ever Hotter,” Sept. 29, 2005), where Murray notes that
commission rates stay stuck around 6% despite soaring house prices
and great technological changes that make it much easiier for consumers
to get housing information and agents to do their jobs. He is inclined to agree:
“with Eric Danziger, chief executive of Internet home seller ZipRealty Inc.
We have an industry that truly has not changed since Dwight Eisenhower
was President,’ he says. ‘That’s principally because people in the industry
don’t want it to’.”
Murray thinks commissions should go down and the numbers of agents should be
reduced, as has happened with stock brokers and travel agents. He was the Luncheon
Speaker at today AAI symposium, and I enjoyed the excerpts he read from email
responses to this column. Not surprisingly, real estate agents disagreed and felt
that journalists are the ones who are overpaid middlemen.
It seems to your humble editor that, as with p/i lawyers and their sticky fee levels,
there are too many agents overcompeting to attract customers rather than competing
on price, because they are looking for the big lottery jackpot that goes with selling
a high-end house. One speaker today, Larry White of NYU’s Stern School, said
there are almost 2 million active real estate agents – 1% of the American work force!
and (3) present some haiku, which you all deserve; today, from Alice Frampton:
the warmth of his pocket
evening shadows
RENOVATIONS
I WORK so he can work. He buys tools and lumber so they
can work. They buy groceries so she can work. She takes her
children to daycare so I can work.
renovations …
from under the old tub
a child’s marble
insomnia
the break-up
moth by moth
“the warmth” & RENOVATIONS (haibun) – Frogpond XXVIII (2005)
“insomnia” – The Heron’s Nest (Nov. 2003)
by dagosan:
autumn highway —
distracted by
past-peak beauty
back in town —
three wrong turns
in a row
[Nov. 8, 2005]
November 8, 2005
brokers, commissions, renovations
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