Consumers, for the most part, have accepted it, but lawyers and closing companies have criticized it. Others have raised concerns about whether all practitioners are doing a good job of disclosing the fee in advance. Despite those obstacles, however, the transaction fee appears to be gaining popularity and spreading to other states.
Stuart H. Wolff, chairman of the board and CEO of RealSelect Inc., the company that operates REALTOR.COM, the official Internet site of the NATIONAL ASSOCIATION OF REALTORS®, explains what’s at stake for REALTORS® and what they, as individuals, can do to ensure a bright future for the real estate industry.
During the last four years, it has shaken up the residential real estate industry, fundamentally changing the way business is practiced. What has caused this upheaval? Revision of state laws applying to realty brokerage relationships.
Lee Carter suffered a series of emotionally painful events. About a month later, Carter developed a series of strange, persistent ailments. He developed claustrophobia, which made it difficult for him to ride in cars, use elevators, or mingle in crowds. He had trouble sleeping. He had stomach pains, chest pains, and dizziness. Medical tests found nothing.
Karen Bernardi was in debt. At one point, her car was repossessed and her water cut off for nonpayment. Today Bernardi is among the nation's top-producing residential salespeople, thankful that she eventually found her calling.
REALTORS® have raised the flag on reform of the federal law governing real estate settlement services, known as RESPA. A task force of REALTORS® gathered here in late August and hammered out the framework of a proposed RESPA replacement law more favorable to one-stop shopping.
Congress proposes legislation designed to save elderly homeowners from paying thousands of dollars in reverse mortgage fees. Also, online mortgage sites, home offices lacking insurance, a new mortgage product, efforts toboost buyer understanding of the mortgage process, and credit reports online.
On July 1, Terry McDermott will take over as NAR's new executive vice president. REALTOR® Associate Editor Walt Albro recently visited with McDermott to get a sense of McDermott's business and association management philosophies--and his personal style.
Pam Lychner, a former REALTOR® from Houston, helped to make the world a better place. And then, tragically, she died. Lychner and her two daughters boarded TWA Flight 800 in New York City, heading for a fun vacation in Paris. A short time after takeoff, the jumbo jet exploded and plunged into the Atlantic Ocean, killing all 230 aboard.
Brokerages are increasingly plugging into affinity relationships. There are several types of such relationships. Some offer added revenue; others, reduced costs. Both are valued by brokers eager to bolster their bottom line.
A number of buyer's representatives, especially those who entered the market before 1993, are well trained and understand their legal duties. In recent years, however, an overwhelming number of salespeople have switched from subagency to buyer agency in response to shifting consumer demand, according to industry observers.
After three years of a crack habit that was costing him up to $1,500 a day, Danny Pacheco lost everything but 58 cents and the clothes on his back. Today he has kicked his crack addiction and is rebuilding his shattered real estate career.
We invited five brokers and managers--representing three discount and two traditional commission companies--to discuss ways that commissions and fee structures are evolving in the marketplace. In this final segment, they talk about differences between traditional and discount brokers.