60 Minutes...investigative reporting???

Many of you may have seen Sunday night's broadcast of 60 Minutes. In particular I refer to the piece on Real Estate agents collecting a 6% commission while there are "on-line" brokerages charging flat fees and even refunding money to buyers at closing. Let me just say a few things about this.

With the advent of the internet, many thought it heralded the end of such professions as travel agents and librarians. People could purchase airline tickets online and even read entire books on websites. As we all know, these professions are still alive and kicking because people still have a need for human contact. If you make hotel arrangements through an online travel site, and have problems with your reservations, who do you call? I'm not saying that online travel sites aren't convenient - they are - but the internet didn't wipe out the travel agent. And now many people are saying Realtors are headed in the same direction.

The 60 Minutes piece highlighted a company called Redfin, whereby people never have to see an agent face to face to make an offer. The entire transaction can be completed online for a flat fee of $3000. And Redfin made a point to say that they refund money to buyers they represent. Who charges buyers to represent them? I certainly don't! And I don't know anyone who does! What happens when negotiations go down the tubes, or there is a problem with the mortgage or home inspection or appraisal. Will those "online agents" be able to handle it and comfort you? Will they be able to head off these problems before they occur?

Having dealt with many "discount" brokers over the years, I can tell you that the full-service agent on the other end of the transaction does the majority of the work while the discounter sits back. Full service agents put their hearts and souls into the marketing of their listings with the understanding that they get paid for a SUCCESSFUL RESULT ONLY! We don't collect paychecks on a regular basis. Many times, the majority of the marketing dollar comes right out of the agent's pocket with the intent of recouping these costs at closing in the form of commission.

It seems that 60 Minutes was promoting Redfin in an infomercial type environment, instead of the investigative reporting they have been known for in the past. It appears that Ms. Stahl of 60 Minutes didn't conduct much research into the real estate industry and bought a bill of goods from the discount broker.

There are excellent real estate agents who are experts in their field, who work hard each and every day for their clients and are able to consult with and advise their clients to reach the client's goal. I have many, many clients who not only appreciate but value our relationship and my expertise. This is just the newest form of discount brokers which will, like all the others, fail due to the lack of service for which they are famous.

I urge you to visit the CBS website at www.cbs.com and read the story for yourself. Then, look at the comments people have left in overwhelming numbers praising the work of realtors.

Thanks for listening.