{"id":2179,"date":"2007-11-07T10:48:53","date_gmt":"2007-11-07T17:48:53","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=2179"},"modified":"2007-11-10T23:02:03","modified_gmt":"2007-11-11T06:02:03","slug":"a-consumers-guide-to-the-divorced-real-estate-commission-why-buyers-and-sellers-each-paying-for-their-own-representation-is-the-most-significant-reform-that-can-be-made-today-in-residential-real-estat","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2179\/a-consumers-guide-to-the-divorced-real-estate-commission-why-buyers-and-sellers-each-paying-for-their-own-representation-is-the-most-significant-reform-that-can-be-made-today-in-residential-real-estat\/","title":{"rendered":"A consumer’s guide to the divorced real estate commission: Why buyers and sellers each paying for their own representation is the most significant reform that can be made today in residential real estate"},"content":{"rendered":"

Part I: How we got into this mess in the first place<\/b><\/p>\n

Can we be straight with each other? I’m not a soft and subtle kind of guy, and my working assumption is that you are sick to death of being hustled — handled — lied to. We yammer all day about transparency, but if transparency is something other than old wine in a new bottle, it’s time we told the truth, don’t you think?<\/p>\n

So let’s start here: The National Association of Realtors, which celebrates its 100th birthday this year, is a vast and largely successful conspiracy against consumers by real estate brokers. By brokers<\/i>, mind you, not agents, although agents are not without sin. The purpose of the National Association of Realtors is to limit — artificially, by fiat of law — the number of people to whom you might turn for help in effecting a real estate transaction. Before the NAR got real estate licensing laws passed, you could have worked with anyone: A friend, a relative, the local beautician or insurance agent. But because of real estate licensing laws, your choices are limited either to real estate brokers and their agents or attorneys. No one else can represent you in a real estate transaction, accepting compensation for their efforts, without breaking the law.<\/p>\n

Why did the NAR do this? So that it might artificially raise the price you are obliged to pay for real estate representation. This is the conspiracy against the consumer, and it has been largely successful for the real estate brokers. The real estate licensing laws are written in such a way that the secondary victims of the NAR conspiracy are real estate agents — who fail in massive numbers — but they’re on their own today. What we are talking about, in the broadest possible terms, is how the residential real estate industry can be reformed so that it is not<\/i> a conspiracy against the consumer.<\/p>\n

I would warn you against rebuttals that take the form of, “Yeah, but.” The “yeah” concedes the point, and the “but” seeks to muddy the waters. So brokers will read this Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Part I: How we got into this mess in the first place Can we be straight with each other? I’m not a soft and subtle kind of guy, and my working assumption is that you are sick to death of being hustled — handled — lied to. We yammer all day about transparency, but if […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5,30],"tags":[],"class_list":{"0":"post-2179","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-marketing","7":"category-real-estate","8":"category-supplanting-the-nar","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":13731,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13731\/violent-change-in-store-for-real-estate-agents\/","url_meta":{"origin":2179,"position":0},"title":"Violent Change in Store for Real Estate Agents","author":"Chuck Marunde","date":"December 1, 2010","format":false,"excerpt":"The real estate business is obviously in the midst of dramatic changes, and that is certainly an understatement.\u00a0 I just published a new book entitled The New World of Marketing for Real Estate Agents (Early Adopters:\u00a0 The New Millionaires).\u00a0 The book will be available on Amazon for $14.95, but what\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":541,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/541\/why-the-traditional-real-estate-commission-model-is-broken-and-needs-to-be-replaced\/","url_meta":{"origin":2179,"position":1},"title":"Why the traditional real estate commission model is broken and needs to be replaced . . .","author":"Greg Swann","date":"October 15, 2006","format":false,"excerpt":"These are the concluding paragraphs of Mark Nadel's white paper on real estate commissions. The executive summary has been quoted all over, but I think this text is more compelling. For what it's worth, I think Nadel has hit a home run. There are things he doesn't know about, which\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":651,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/651\/the-headline-buried-in-the-news-real-estate-agents-are-as-safe-as-houses\/","url_meta":{"origin":2179,"position":2},"title":"The headline buried in the “news”: Real estate agents are as safe as houses!","author":"Greg Swann","date":"November 18, 2006","format":false,"excerpt":"It's Saturday, and you know what that means. If the Arizona Republic doesn't piss all over the real estate business, someone might accidentally go out and buy a house. Here's the scoop:Complaints against real estate agents are on the rise, with consumers accusing them of everything from selling property without\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9567,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9567\/real-estate-branding-post-google\/","url_meta":{"origin":2179,"position":3},"title":"Real Estate Branding, Post-Google","author":"John Rowles","date":"August 20, 2009","format":false,"excerpt":"Do real estate brands mean anything to homebuyers post-Google? When the MLS was printed in a binder that brokers hid under their desks and consumers had to shop for an agent first, brand mattered to buyers. Now, buyers come armed with a list of properties that are relevant to them\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7922,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7922\/personal-relationships-1-cold-technology-0\/","url_meta":{"origin":2179,"position":4},"title":"Personal Relationships 1, Cold Technology 0","author":"Glenn Kelman","date":"April 17, 2009","format":false,"excerpt":"I hate to admit it -- I so often have to -- but Greg Swann was right. A few months ago,we got into a debate about whether venture-funded technology companies were squashing little brokers. I told Greg the little brokers had no brains -- why aren't they all trying to\u2026","rel":"","context":"In "Real Estate"","block_context":{"text":"Real Estate","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/real-estate\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/blog.redfin.com\/files\/2009\/04\/why-did-you-use-a-traditional-agent.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":11202,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11202\/agents-of-change\/","url_meta":{"origin":2179,"position":5},"title":"Agents of Change","author":"Glenn Kelman","date":"February 8, 2010","format":false,"excerpt":"Don Stewart posed an interesting question this morning about whether real estate is changing top-down from the broker or bottoms-up from the agent. In a post about how Redfin sees the real estate industry changing, Don suggested we had focused too much on the laws, the brokers, the MLS data\u2026","rel":"","context":"In "Dual Agency"","block_context":{"text":"Dual Agency","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dual-agency\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=2179"}],"version-history":[{"count":0,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/2179\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=2179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=2179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=2179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}