On CBS the other night, 60 Minutes ran a story that featured a real estate company called Redfin. Redfin is not the traditional real estate brokerage business model and the focus of the story keyed on how commissions are charged by different models. Needless to say, it didn't go over very well with many Realtors who believe that you can't possibly pay enough for their services.
In NAR's May 14th response to the CBS 60 Minutes story, they listed a few issues where NAR felt that the "facts" presented by 60 Minutes were less than accurate.
Here is one such example:
Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends.
After playing Point/Counter Point, NAR then hits on some other points that they believe 60 Minutes misrepresented or overlooked:
NAR supports all business models and favors none. Our 1.3 million members include REALTORS® who work on a full-service basis, as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters. We think it's great that consumers have a choice today.
The used the following labels:
- full service
- limited service
- minimum service
All but the last one, 'discounters', refers to service. 'Discounters' refers strictly to commission. Why even have it on that list?
When you state that all commissions are negotiable, but then use the label 'discounter', just what do you think is implied?
Feel free to search all San Diego homes for sale throughout the county.