Reactions to the 60 Minutes story on online real estate that aired May 13 continue to pour in to RISMedia. Here, read some of the many responses to the piece, our coverage of it and how you can get involved.
Responses range from outrage over what viewers say was the news
magazine's unbalanced coverage of traditional real estate brokerage, to
staunch support for online brokerages and their various models.
Many of our readers have requested information on how to get in touch with 60 Minutes to submit letters. Those interested may write to:
CBS News/60 Minutes:
524 West 57th St.
New York, NY 10019
60m@cbsnews.com
PHONE: (212) 975-3247
Or send your thoughts directly to 60 Minute Executive Producer, Jeff Fager:
Jeff Fager
Executive Producer
CBS News "60 Minutes"
555 West 57th, 9th Floor
New York, NY. 10019
To email your responses to RISMedia, send them to realestatemagazinefeedback@rismedia.com.
Letters to the Editor
To the Editor:
Stop the whining - 60 Minutes went easy on "traditional" brokers.
Like most Realtors®, we anxiously awaited the airing of the CBS 60 Minutes segment on real estate ("Chipping Away at Realtors' Six Percent," May 13, 2007). Our interest was based on the hope that our company, Assist-2-Sell, would be featured. When interviewed earlier in the year by 60 Minutes, we offered them plenty of examples of the unethical, unprofessional, and anti-competitive practices we've encountered over the past 20 years as "discount" brokers. We anticipated a format similar to Dateline NBC's To Catch A Predator, perhaps entitled To Catch A Realtor®. While we were disappointed, we suspect more than a few brokers breathed a sigh of relief. In fairness, we have no first hand knowledge of 60 Minutes obtaining footage of anyone during their investigation behaving in an inappropriate manner.
The 60 Minutes report was fair and balanced. Both the traditional business model and the Internet based business Redfin model were given adequate opportunity to present their value propositions. It is unfortunate CBS did not discuss other alternatives for consumers, such as our established business model. Our company has more than 600 offices serving all size markets with a proven business model. We offer an alternative consumers can enjoy today in most markets, as opposed to paying high commissions offered by many other firms.
The National Association of Realtors (NAR), in its response to CBS, claims it "supports all business models and favors none." We respectfully beg to differ. We've witnessed numerous rule changes and support of legislation intended to create roadblocks for competitors to the traditional model under the guise of protecting consumers. If NAR truly supported all business models, the DOJ would not need to resort to litigation to get the MLS information opened up to those Realtors ® who use different models. NAR refuses to allow Assist-2-Sell "Non MLS" listings to be displayed on the powerful Realtor.com® Web site. The Web site is not titled MLS.com, but rather Realtor.com®. We believe our franchisees, as Realtors ®, should be entitled to display all their listings on Realtor.com®, which ultimately benefits the consumer.
We continually hear that commissions now average only 5.1%. The truth is the 5.1% number came from an industry trade publication, and was an estimate of average commissions charged by the nation's top 500 brokerages. John C. Weicher, Director of the Hudson Institute's Center for Housing and Financial Markets, found the industry trade publication's commission data limited by its focus on the largest brokerages and most expensive homes. NAR needs to invest in a commission survey conducted by an independent company and share those results with the media.
Despite challenges to our business model from within the industry, we do very well. We are approaching one billion dollars in commission savings for our home sellers* and the number is growing. Seller's recognize our "Full Service with $avings!" marketing programs as a legitimate alternative to paying high commissions. Internet models like Redfin should be allowed to succeed or fail based on their business model, not interference through legislation, rule changes or anti-competitive practices.
Lyle Martin and Mary LaMeres-Pomin
Co-founders, Assist-2-Sell
North America's Leading Discount Real Estate Company
* Savings based on statistics for all Assist-2-Sell offices in North America compared to paying 6% commission, which is used for comparison purposes only.
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