Letters to the Editor

Re: 'New HOMS biz model for MSN traffic' (Jan. 20)

Dear Editor:

I really wish Allan Dalton would stop being such a crybaby. Allan, if the MSN deal is a good one you will make money, as Realtors flock in droves to pay you twice for the added exposure. Heck, the new VOW rules, if adopted by an MLS, can prohibit brokers from advertising next to anything but their own listings. You should be happy you have been afforded this special license to print money.

Instead of trashing the few models that can compete with you, why not focus on stopping the multi-million-dollar losses at Homestore – by executing your own business plan. You have the industry's greatest competitive advantage – direct and free feeds from our MLSs – something the rest of us have to pay for. Those tech-savvy brokers among us who like to run IDX sites so we can be little Realtor.com's do not have the luxury of being the NAR's golden boy like you.

I like Realtor.com, but LendingTree is just another model to me. Just another model, Allan. Everyone, from Cendant Relocation on down, does referrals. I think industry leaders, like you, should stick to their own business rather than trashing competitors. You are exhibiting a different kind of cockiness than the old Homestore, but cockiness just the same. It's the cockiness of "our way or the highway." I thought you guys would have learned. Your allegiance (if I read my Graham and Dodd right) is to your shareholders, and Realtors are your customers to be up-sold, side-sold, but sold product. Stop talking for the industry. The market will decide what model(s) consumers want.

Twenty years ago, many of us laughed at the thought of real estate franchisee companies (McRealEstate) – but consumers reacted to the consistent branding and systems, and now franchisees dominate the industry. Now you are badmouthing models that may be what consumers want. Maybe they like LendingTree. Allan, focus on improving the consumer experience and stop the whining.

Brad W. Blumberg
CEO/Broker
Smarter Agent Realtors
Voorhees, N.J.

Re: 'Economic think tank bets housing market will crash' (Jan. 19)

Dear Editor:

Your article states:

"No one has yet produced a remotely plausible explanation of how fundamental factors can lead to a run-up in home sale prices, but not in rental prices."

The explanation is:

The low interest rates! It's so obvious, how can you not see it? Lower interest rates = lower mortgage payments, and more affordability. Renters move out of apartments because of easy and cheap financing, even for the "credit challenged." Meanwhile, landlords refinance their investments at lower interest rates, and can afford to offer lower rents, and also have to, because the supply of renters decreases as it becomes easier for renters to own homes.

John Prell
Central Realty
214OwnHome.com

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