Letters to the Editor

Re: 'Real estate commission story causes uproar' (March 13)

Dear Editor:

By far the comment most relevant to the future U.S. real estate environment was from the person from United Kingdom: "As someone who came from the U.K. to the U.S.A., the fees charged by U.S.A. Realtors are just madness. In the U.K. it's 1-1.5 percent maximum, as it should be."

That person's attitude is not what's significant. It's the fact there is a successful real estate services business model in Great Britain that makes it possible for real estate brokers and agents to make a decent living at 1 - 1.5 percent commissions.

The market is changing. There is no point to trying to stop change through legislation and regulation. That is tarnishing the profession's reputation and not accomplishing the goal. Instead, U.S. real estate services companies need to study the U.K. model and learn how adapt it to the new U.S. realty realities.

Bruce Hahn
American Homeowners Grassroots Alliance
Arlington, Va.

Dear Editor:

I thought your story was spot on.

The old real estate model consisted of: clients, MLS and agents. In the new model we have: clients, data and advisors. As you noted, the real estate transaction is far too unique and complicated for most people to complete without getting expert advice. What worries many real estate agents is that they won't be able to charge their clients nearly as much for their advice alone as they could when they also controlled data access.

Skilled real estate agents need not worry. Just like lawyers, quality real estate advisors will always earn an excellent income whether they are paid by contingency or by the hour.

David Faudman
CEO
CleanOffer Inc.
San Francisco, Calif.

Dear Editor:

As long as agents spend most of their time and resources looking for business rather than doing business, the client will feel overcharged. What we do for them is not worth what they pay for it. However, if we want to stay in business, someone has to pay for the time we spend prospecting, working with buyers who don't buy, and listing houses that don't sell. Since an unending flood of greenhorns use their first clients to learn on and so many agents are desperate to finally get a deal closed, it's no wonder the profession comes off looking bad. The conflicts built into the business guarantee customer dissatisfaction.

Paul Johnston
President
River City Equities Inc.
Portland, Ore.

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