Do Bankers, Bubble, Discounters, & Justice Department Cloud Real Estate Industry?

Once relegated to the classified advertising section of the local paper, real estate has jumped to front-page headlines and covers of national magazines. Leaders in the real estate industry are weary from interview requests for their perspectives on market conditions, the ongoing battle with the banking industry looking for entry into residential real estate brokerage, online brokerage commission discounters and investigations into their business practices from the U.S. Department of Justice.

The headlines threaten a correction in real estate prices, protectionist real estate trade associations, traditional versus Internet brokerage business models and a consumers right to a competitive marketplace for real estate services. Be aware of the issues and determine if they relate to your real estate investment goals.

Banking.

Two of the strongest industry trade associations, banking and real estate, have been waging a battle over the right of banks to offer real estate brokerage to consumers in addition to other financial instruments such as mortgages, securities and insurance which they currently market to customers. The National Association of Realtors® testified at hearings with the House of Representatives Committee on Financial Services that allowing banks into real estate will cost consumers more through increased real estate service fees.

Bubble talk.

It's a fact that talk of a real estate bubble has the attention of consumers. Hitwire an online monitoring service reported that searches for "real estate bubble" and "housing bubble" peaked at their highest level in the last twelve months for the week ending May 28, 2005. The expanded coverage and dialogue of real estate market practices and markets is an overdue educational resource for individual real estate investors.

Discount commissions and the Internet.

Discounted commissions offered by limited-service brokerages which often feature a strong Internet presence, helped this real estate business model to flourish. At issue is a discount broker using the listing information originated by a competing broker on their website. The broker who originates the listing information feels that they own the information and can "opt-out" of sharing it with competitors. Meanwhile the discount broker complains that being denied the information doesn't serve the consumer and feels it's anti-competitive. The discount brokers came into being by recognizing that some real estate consumers want alternatives to paying full-service commissions. Discount brokers offer limited services in exchange for lower commissions. State laws in some locales have been updated to implement minimum service requirements for consumers by discount brokerages at the request of state real estate trade associations.

The U.S. Department of Justice.

The adoption and possible consumer implications of limited-service requirements for discount brokerages in some states triggered an investigation by the Department of Justice. At issue is the claim by some discount brokers that these new limited service laws or policies are anti-competitive and thus violate federal anti-trust laws. The discount brokers allege these adopted or proposed policies at the national and state levels aim to restrict Internet competition for real estate consumers.

Ultimately real estate consumers and public opinion will decide if these issues cloud their perceptions of the residential real estate industry. In addition lawmakers and government officials will weigh in with their opinions of the future of real estate.

Mark Nash is a residential real estate author and broker in Chicago. He has contributed his real estate insight to CBS The Early Show, Bloomberg TV, Dow Jones Marketwatch, and Universal Press Syndicate. Mr. Nash specializes in helping consumers succeed in real estate. His latest book "1001 Tips for Buying and Selling a Home" is available in bookstores nationwide or at Amazon.com

---

Cant Rent a Work Zone

So you've picked up your first (or third, or tenth)... Read More

Looking into Buying Mobile Homes?

To own a home is one of the dreams every... Read More

FSBO - How to Prepare Your House to Sell

Did you hear that? Prices of houses in Phoenix have... Read More

Maintaining Small Town Charm In An Ever-Changing World

Virtually any state in the country has the appeal of... Read More

Using The Internet In Your Lease Purchase Business

First you need to find a list of For Sale... Read More

How to Make Money from the California Real Estate Gold Rush

What do the Californians know that we don't?What is so... Read More

Apartment Financing Explained

So you're interested in entering the world of property management?... Read More

Buying a Vacation Home

You'd like to buy a vacation home, but you're not... Read More

7 Different Ways Anyone Can Become a Real Estate Investor

Being a real estate investor is not really that hard,... Read More

Finding a Great Listing Agent for Your Home: 8 Tips

If you've decided to list your home, you'll be paying... Read More

How Real Estate Investors Use Mortgage Note To Purchase Properties

Many of you may not be aware of the various... Read More

Landlording And Other Aggravations

Here's the gripping story...You are the landlord of a small... Read More

How to Qualify For 90% Plus Commercial Financing!!!

There are three important questions that you must understand and... Read More

Home Equity ? Don?t Spend It on Risky Investments

The housing market has exploded in the last five years,... Read More

Dont Sell It Yourself

Don't sell it yourself! Sometimes a "FSBO," or house "for... Read More

Selling Your Home ? Be Sure It Shows Well

Whether you are selling a house, townhouse, condo or apartment,... Read More

Home Buying Checklist ? Windows

If you are in the market to purchase a home,... Read More

Real Estate Investing By The Numbers

Just like most things real estate investing can be broken... Read More

New Homes in Ridgefield

Location:Frequent travelers will absolutely delight in this town! As part... Read More

Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!

I have been a mortgage lender for many years and... Read More

Property Investing Secrets 3

Property Investing Secrets: When you Make Property Easy to Buy... Read More

Buying a House in Scotland

Buying a house in Scotland is slightly different from buying... Read More

Late Mortgage Payments Sabotage PMI Cancellation

There's something you should know about PMI!Private mortgage insurance is... Read More

Mancos Real Estate

Real estate: availability and costIn 2000, the median home value... Read More

How to Make a Home for Sale Flyer Using Marketing Psychology

Want to sell your home right away, for the highest... Read More

A Crash Course On The Payout Options Available To You When Selling A Mortgage Note

Okay, let's take a look at the typical payout options:Full... Read More

Dont Get Stuck Having To Deal With The Sellers Household Hazardous Wastes - After You Move In!

I have a confession to make!I was just outside with... Read More

Real Estate Investors Kick Away $1,000

Those new to real estate investing often fail to take... Read More

Buying Land Online

In the old days people generally only bought land and... Read More

Golf and Waterfront Living: Live, Play, Relax

With today's planned lifestyle communities, golf and boating enthusiasts have... Read More

10 Tips to Sell Your House Faster!

Here are some Handy wee Tips to help you Sell... Read More

Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own!

In the United States, less than 10% of all For... Read More

Investing In Land

Changing social trends point to a huge rise in demand... Read More