Letters to the Editor

Re: 'Justice not served in real estate dispute' (Oct. 25)

Dear Editor:

As I just spent seven hours in deposition in Boston yesterday in testimony on the now-infamous DOJ v. NAR case. I concur with Marcie Geffner's perspective that the VOW issue in itself will be, and is now, a moot point as the main issue of contention, as new technologies and national online real estate platforms take center stage in the open source of listing information.

But I would contend that the real issue here -- and still the real basis for the DOJ's concerns for consumers and new innovative real estate models -- is the simple fact that NAR buckled and surrendered when Goliath threatened and swung its white paper sword of demands into action and hid behind it's large shield made up of its huge NAR member base.

There is no question that new innovative models that used VOW effectively and efficiently were very appealing and useful to consumers who were demanding exactly what these new tools gave them as evidenced by the large number of consumers flocking to use them, and the simple fact that Goliath felt threatened by this.

The shear enormity of Goliath precludes them from making quick offensive moves. David's fast implementation of VOW caught Goliath flat-footed, whose only defense was to use its huge member base as the shield, and pressure NAR to promulgate strict and anticompetitive rules and regulations to thwart David's plans.

And it worked. Goliath had bought the time needed to now operate the largest VOW in the world, and David's threat is now a moot point. There isn't and was never any question that VOW was a useful tool that was good for business and for consumers. The question is will this tool now in the hands of Goliath result in efficiencies and cost savings for consumers as David was affording them? I think not, as it has not and will not.

The fact that this could happen is in itself the basis for the antitrust question posed by the DOJ and many members of NAR. The fact that Goliath will be sure to threaten NAR again when the new innovative model or technology catches them off guard is only natural to expect now and a real concern.

We are all consumers. We all lose when Goliaths are able to stifle new technologies and efficiencies. Oil versus the environment? Airlines versus delays? Housing costs versus economic downturn? No one questions that the environment is a mess. No one questions that airport delays are a mess. Why question if the economic downturn is partly if not wholly attributable to housing costs?

History proves that most new innovation comes from the grass roots up, and all Goliaths, in all industries, see David as the threat to their own existence. But, in fact, David was simply the messenger and doing the will of the people. Courageously, David stood up to Goliath and delivered the message in the form of a small stone in his sling. Goliath's large shield and huge sword proved to be no protection against the one small stone of consumers' message that landed square between its eyes and dealt the fatal blow.

So we can focus on the Goliath's demands. We can focus on David's courage and new plans. But we dare not be distracted and lose our focus on the stone and miss the message from consumers that has been hurled directly toward our foreheads, and is right before our eyes and ready to strike us all.

Jeffrey Bastress
Startpoint Realty
Sterling, Mass.

Re: 'NAR crosses swords with DOJ over real estate site' (Oct. 23)

Dear Editor:

I'm glad that NAR has spoken up on this site. DOJ's site implies that the cost of doing business has remained static over the past decade. Real estate agents who have done business over the past 10 years know commission percentages have decreased, but because of the increase in house values total amount of commission earned per closing has increased. At the same time, cost of doing business has also increased as much or more per closing.

If DOJ really wants to see if we are competitive it should look at what an agent has to spend on his or her business to give the service that sellers and buyers want and expect. Then it can look at cost per transaction in relationship to income and make an informed conclusion.

Jim Clifford
ERA Premier Realty Associates
Sumner, Wash.

All rights reserved. This article may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this article without permission is a violation of federal copyright law.