Realtors

Dear Victorious,

What do you think of Realtors and their role in society today?

Shopping for A Home

Dear Shopping,

I've worked with several Realtors through the years. In most cases, it was a pleasure to work with them. I remember most of their names, and all of their personalities - even those I worked with 25 years ago. So I believe that the good Realtors are notable personalities.

The problem with Realtors is that they have a choke hold on the real estate transaction. It is nearly impossible to find a suitable home - amongst the thousands to pick from - without the expert help and resources of a Realtor. It is even more impossible to sell your home - without engaging the resources of a Realtor. Realtors control the multiple listing service (MLS) - a national data base of homes available for sale. If your house isn't on it, there's scant chance you'll find a buyer.

Most people think that Realtors charge too much. Typical commissions on a transaction tend to be from 6-7% of the sales price (although some have been known to negotiate or offer discounts on multiple transactions, etc.) To be honest, I don't know if that's a fair price for the value of the services they provide. We can't get those services from anyone else - so we can never know. Simply put, Realtors have a monopoly on this. They have no real competition.

Some thought that the Internet might undo the Realtors. The word is "disenfranchised." It was thought that the Internet could make Realtors less relevant or at least less critical to the transaction. That's largely proved not to be the case. Web sites like RealEstate.com went bankrupt - trying to list and sell homes without Realtors. Even on the Internet, the most robust source of homes for sale will today be found at the Realtors' own national web site - Realtor.com.

So what do I think of Realtors? I don't like the fact that they have a monopoly and that I am forced to do business with them. At the same time, as individuals, I respect their work and appreciate the level of service I get from them. You should too!