CJackson Homes

Know when to say no to real estate commission discussion

2011-11-04T10:45:00.000-07:00

Realtor Notebook

By Teresa Boardman, Thursday, November 3, 2011.

When I was taking classes to get my real estate license, I was reminded over and over again that it is against the law for real estate licensees to discuss commissions with competitors. We were told that discussing commissions with our competitors could be a violation of the Sherman Antitrust act, and brokers used to be afraid -- paranoid, even.

The idea behind the law was to foster competition in the marketplace. If all of the brokerages got together and decided what to charge and then charged that amount to consumers, there would be restricted competition -- we could, as a group, work to block others from introducing lower-cost business models. The Department of Justice has had the National Association of Realtors in its sights for years.

As a licensed real estate broker, I should not write an article here or anywhere suggesting that all agents should charge "X" amount because we are worth it, or for any other reason.

I can advertise my own rates, but I should not engage in a conversation about the commission rate real estate professionals should charge with another licensee outside of my brokerage.

Someone without a real estate license can write anything about what real estate professionals should charge for services, but as a licensee I will not comment on such articles.

If I choose to comment and another real estate licensee comments, too, and we both agree that we are worth "X" percent -- and that happens to be the exact rate we charge for our services -- we may draw the attention of lawyers or antitrust law regulators.

Yesterday I was on the Trulia website in the Trulia Voices section, where consumers can ask questions and real estate professionals can answer. A seller asked what the average real estate commission rate is for the area.

Several agents stepped up to the plate and answered the question. The correct response from a licensee should be that we can provide only our own rates and that we don't know anything about averages.

One way for consumers to get an average would be if someone were to survey home sellers and ask them what they paid in total commissions. Consumers often ask us for averages -- they want the information. Another option is to view publicly available financial reports by real estate companies (examples: Realogy Corp. and ZipRealty).

Some of the state Department of Commerce sites handle the issue by stating that real estate commissions are negotiable, and they encourage consumers to negotiate.

The best place to get more information on the basics of the law and how it applies to Realtors is by contacting your local or state Realtor association. There is some information on the NAR website (Realtor.org), but most of it costs money. I found a free quiz on the site that addresses some of the basic issues.

Real estate licensees should not discuss commission rates with each other, and I think we sometimes forget that we can run into trouble by having online discussions about commission rates -- that includes comments on articles or blog posts and consumer websites.

I have occasionally written about commissions on my real estate blog, but I have disabled the ability to comment on the post because real estate agents will leave comments.

One could argue that if my readers are in New York or California, they are not my competitors, so it's OK to discuss with one another how much we charge.

But it could also be argued that an agent in Minnesota could be part of a nationwide real estate price-fixing scheme.

There are several other ways to run afoul of antitrust laws. We could all agree not to show the listings of company "X" because we don't like that company or how it runs its business.

I am not a lawyer. I just want to say that real estate licensees need to take care not to discuss commission practices with each other -- not even in the comments on a website or in answering a question on a website for consumers.

It seems like the real estate industry has gotten lax, as I can easily find agents' discussions about commission practices on websites. We all need to be reminded that we should not discuss commissions amongst ourselves -- even if the conversation was started by a consumer on a website.

We can publish our own rates, and advertise them as much as we want to, but we just should not discuss them with other brokers.

2011-11-02T20:19:00.000-07:00

Helen Adams in the News!

Posted By Helen Adams Realty on November 2nd, 2011

In Charlotte Homes,Charlotte Market Data,Charlotte Real Estate,Uncategorized,Videos

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Helen Adams Realty and their very own Lauren Ponder (LP) were featured in a story on News 14 called “Charlotte Mecklenburg housing market shows signs of healing”. To view a video of the report, please click here or click the screen shot below.

LP on News 14

The Story:
CHARLOTTE — The Charlotte and Mecklenburg County housing market is healing. That’s what National Association of Realtors Chief Economist Lawrence Yun said during a conference Tuesday morning.
Yun says sales have increased for two straight years and inventory is falling. He says that’s a good indicator that the housing market is finding an equilibrium.
“By this time next year, provided there is a continuing job addition in the economy, the housing market is set to return to healthy status,” said Yun.
Dr. Yun says that improvement could be derailed if two things happen.
First, he says new home construction needs to improve. He says current building is at a stand still because banks aren’t lending to builders. He says the new home inventory is at a 40 year low. He says the lack of inventory could cause a housing shortage and prices to spike.
Second, Yun says Washington lawmakers are considering a proposal to raise required down payments for some home buyers to 20 percent. He says the proposal is intended to avoid another housing bubble. Yun says the legislation could stall or damage the housing market.

$500 Gift Card

2011-11-02T20:10:00.000-07:00

$500 Gift Card to Buyer’s Choice Piedmont Row Restaurant with Sale!

Posted By Helen Adams Realty on October 12th, 2011

In Charlotte Homes,New Home Listings,New Listings in Charlotte,SouthPark Area

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Cara Brillhart-Shields has just announced a unique offer for one of her properties! If you buy the property, not only do you get a new home, but you will also receive a $500 gift card to the Piedmont Row restaurant of your choice! Possible options include
Taco Mac, Del Frisco, Brio, George’s or Terrace Café

Piedmont Row

This property is a spacious condo with a large kitchen – granite, stainless appliances, pendant lighting, tall cabinets, modern fixtures & hardwood floors. It features a tile bath with glass enclosed shower. It also includes an oversized walk-in Master closet, private balcony overlooking the heart of Piedmont Row, rooftop Pool & Club Room in building -Walk to restaurants & shopping