The iron grip

Wow…all I can say is wow…

There are some folks in the real estate industry that have been trying to change the way real estate is done, bought and sold.  These companies are often called “discounters” because they don’t want to charge people that elusive 5-7% real estate commission.  I have an alternative business model here in Salem Oregon, but am not a discounter.  Discounters are typically defined as those companies that take a low listing commission or fee, and then also offer a low buyer agent fee.   I offer a good buyer agent fee.

Now, these models have been around forever…really they have, most consumers just don’t know about them.  Consumers tend to fear them because they tend to buy the hype of larger agencies.  Big must be good right?  Compare the quality of clothes at Wal-mart to Meringue Boutique in town…There is no comparison.  Small businesses can rock.

I am a firm believer that real estate needs all sorts of models.  It is good for consumers.  So I have to say I was stunned with this comment (#60) on a public forum the other day…

…As the largest real estate office in Georgia south of downtown Atlanta, none of my 140 agents will show a discount firm’s listing, ever. It’d be like your arch enemy coming to town and trumpeting “I’m here to cut your throat from ear to ear. Now, would you mind terribly to help me sharpen the knife?” I don’t think so.

Don Bush

Now for those of you consumers that having been talking on real estate forums about the need for lower commissions, here is your road block.  Online and in writing.  Boycotting.  Now agents will tell you to your face that they don’t boycott these listings, but apparently this agent feels so comfortable with his decision that he felt okay sharing that with the world.  So, for you consumers that can’t figure out why real estate fees won’t come down…here you go…from the horses mouth.

The iron grip.

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6 Comments on “The iron grip”

  • Recent buyer June 14th, 2009 3:51 pm

    This guy has a very short future. Zillow will see to that.

  • Jessica Horton June 15th, 2009 7:25 am

    Melina:

    I told you I’d come check it out.

    I had a seller tell me: “Well, it’s just one guy…”

    Yeah. One guy with 140 agents, but there are a lot more “just one guys” out there. Of course, you’ve seen my post on it.

    Cheers! You rock! :)

  • J. Philip Faranda June 15th, 2009 10:11 am

    For a broker owner to advocate boycotting another brokerage so brazenly it both saddens and amazes me.

  • Melina Tomson June 15th, 2009 4:45 pm

    Jess I’m just not sure that as “independent contractors” that telling 140 agents they can’t show those types of listings would work. I would think that act alone would shift them into employee category.

    For some more interesting discussion readers you can head to Jessica’s post.

  • Melina Tomson June 15th, 2009 4:46 pm

    Philip,
    It is really sad. I feel bad for consumers.

  • […] a good friend and an real estate agent in Salem Oregon recently posted a great article she calls  The Iron Grip.  In this article she calls out agents that are publicly stating they will not show properties […]

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