Thursday, June 22, 2006

Real estate "cartel"

The Consumer Federation of American came out with a new report here (press release...I think you have to buy the report). It's not too much new...Realtors are another self-interest group like us lawyers fighting against the illegal practice of law by non-lawyers. It includes some good tips however:

1. Always ask for a 1% rebate from your broker and 2% if the broker is "double-dipping." I.e. same office has both Seller and Buyer.

2. Ask potential broker about conflicts of interest such as pushing own listings or those of their home firm.

3. Ask for written disclosures of whom broker represents, if anyone.

Realize what huge amounts of $$ are at stake...6% of $400,000 is $24,000. Do you spend 15 minutes when you're paying that much for a car? If you have a personal lawyer, involve them in negotiations with the listing agent. This is an important and expensive negotiation!

WSJ had a piece in last weekend's paper entitled, "Real-Estate War Traps Consumers in the Middle." That has some very telling stuff in it....get it for a read. It talks about a couple disputes that BuySide Realty and Redfin have had with traditional brokers failing to pay their commissions and not letting buyers get their "rebates." Also, it discussed traditional brokers offering payoffs to buyers to drop their discount brokers.

1 Comments:

At 10:08 AM, Blogger Smiley said...

:)

 

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