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60 Minutes Article on Discount Brokerages

Tuesday, May 15, 2007
by Rob Levy, Prudential Northwest Properties

On Sunday 60 Minutes, one of the most respected names in television journalism history produced one of the most one sided, articles I have ever seen.  As a long time viewer and admirer of the show, I was shocked at what they did.  I have listed the information I and others - including the National Association of Realtors (NAR) - feel they have done wrong...

All I can say at this point is there is always a need for all type of companies in helping consumers buy and sell real estate, and I for one welcome them.  But whats fair is fair, and 60 minutes needs to present BOTH sides of the story.

Here are some examples of the misinformation:
Error: The six percent commission is "sacrosanct."
Fact: All commissions are negotiable. The average commission rate is not 6 percent, but 5.1 percent, according to Real Trends, a national industry magazine.

Error: NAR is the industry's "governing body."
Fact: NAR is a trade association. It does not govern the industry.

Error: In 2003, NAR issued new rules of its own that threatened to block Internet discounters' access to the MLS.
Fact: The Virtual Office Website policy did not block access to MLSs for discounters or any other brokers who are members of the MLS. Discounteres listings ARE shown in the Portland MLS

Error: The MLS is the database that lists virtually every home for sale in the country.
Fact: There is no single national MLS. Rather, there are more than 900 local and regional multiple listing services. These are not simply "databases" but private exchange of offers of cooperation and compensation between real estate brokers.

Error: Eight states have "minimum service laws" that require REALTORS® to provide a level of service many Internet discounters can't afford.
Fact: "REALTOR®" is a trademarked term and should never be used synonymously with "real estate agent." The intent of minimum service laws is to ensure consumers receive a minimal level of service from licensees.

Error: The brokerage industry has a powerful lobby. Eleven states flatly prohibit rebates.
Fact: The intent of anti-rebate laws is to prevent kickbacks in real estate transactions, not to limit brokers' incentives to attract customers. The brokerage industry does not lobby for anti-rebate laws.

Other key points 60 Minutes misrepresented or overlooked:

  • NAR supports all business models and favors none. Our 1.3 million members include REALTORS® who work on a full-service basis, as well as those who consider themselves to be limited service, fee-for-service, minimum service, and discounters. We think it's great that consumers have a choice today.
  • The real estate industry has harnessed technology for the benefit of consumers and will continue to do so. Real estate is both high-tech and high-touch, so can be enhanced by both electronic and personal interaction.
  • There is no such thing as a "standard commission." Commissions are negotiable and prices vary. The fact is that commission rates have decreased 16 percent from 1991 to 2004 (source: Real Trends).
  • The real estate business is unique in that competitors must also cooperate with each other to ensure a successful transaction, and MLS systems facilitate that cooperation. The first MLS was created more than 100 years ago as way for brokers to share their listing agreements with each another in hopes of procuring buyers for their properties more quickly and efficiently than they could on their own.
  • The MLS is a tool to help listing brokers find cooperative buyer brokers to help sell their clients' homes. Without the collaborative incentive of the existing MLS, brokers would create their own separate systems, fragmenting rather than consolidating property information.


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    Working With a Live Agent is the Best Way to Buy and Sell Your Home!

    Tuesday, May 15, 2007
    by Rob Levy, Prudential Northwest Properties
    Submitted by Shawn Headlee
    I was watching 60 Minutes last night and they had a segment about a company that did nothing but web based real estate transactions. Being in the business for 13 years and working with agents on a daily basis, I came to the conclusion that it was an unfair portrayal of the real estate industry and the agents that make it work. I have been getting more and more frustrated with shows like 60 minutes that used to be fair and balanced and now seem to spin their segments for their best interests. The air time for the online company compared to the real estate agent was two to one.  The National Association of Realtors has expressed disappointment with CBS for airing such a one-sided story on real estate.
     
    I know first hand how hard the real estate agents that I work with work on a daily basis. The Rob Levy Team is at the top of the list when it comes to working hard for buyer or seller.  Sometimes they spend over a year showing homes to a potential buyer who may or may not ever choose to buy a home.  I also see very happy clients that could have never sold and purchased without their help. I remember when the online mortgage companies hit the seen and the news stated that I would be out of work in a year, well I am busier than ever. I think the same will hold true to this situation.
     
    Have a great week!!
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    Happy 100 Years Rose Festival!

    Tuesday, May 15, 2007
    by Rob Levy, Prudential Northwest Properties

    Submitted by Sandra Hanis

    The city's first Rose Festival Parade happened in 1907 following the success of the Lewis and Clark Exposition of 1905. It was decided in 1907 that the city should have a month long Festival of Roses.

    For those who have never gone to a Rose Festival Parade, one of the top 5 parades in the nation says USA Today, this could be the perfect year to start your tradition. When I decided to go, I didn't camp out overnight or elaborately tie off my spot on the parade route. I hopped on the light rail moments before the parade was to start….grabbed a cup of coffee on my way and enjoyed the infectious enthusiasm of the crowd. You really do feel like a kid again at a parade!

    Why not invite a new Portland resident to go with you! You can check out the Rose Festival calendar on-line for the June long festivities

     and enjoy visiting in the land of Rosaria for the month of June!
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    Appreciation is smart work:You have to love it, Portland Oregon market is a proven winner, again!

    Wednesday, May 9, 2007
    by Rob Levy, Prudential Northwest Properties
    Submitted by Bruce Hecht

    Whenever we invest our money we want it to grow for us.  Living in Portland Oregon and investing in real estate has always been a smart move.  I was talking with one of my neighbors last night at a neighborhood Summertime BBQ.  He asked me what I thought about the real estate market and the fact that is suppose to go down?  I said, what do you mean?  He said that we are only suppose to be seeing 5-12% growth in real estate in Portland Oregon in 2007.  I asked him why he thinks that is "going down"?  He said, "well, last year homes were going up 10-18%!  I said, yes, you are correct.  But if your home goes up 10%, instead of 18%, how can you think or say, that the market is going down!? He agreed, appreciation is... appreciation.
     
    Many economists and real estate experts link the buying habits of "baby boomers" and investors, to the demand for homes in this country. They argue that the population will stabilize or decline as these potential buyers age and their children are grown.

    What is left out of such a picture is that the emerging real estate market is made up of people who are immigrating to this country. It is also made up withinvestors wanting to try to establish and build their portfolios. When these newcomers have achieved a stable income, they look for the best living situation they can find, often preferring buying to renting.

    Real estate continues to be an attractive investment opportunity. If you are sitting out the current market because you are afraid that the appreciation won't continue, you may want to re-think your decision. Today's market is providing opportunities for homeowners and smart investors from all over the globe.  Buy now and reap the benefits of appreciation .
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    Lead Based Paint in Homes Before 1978

    Tuesday, May 8, 2007
    by Rob Levy, Prudential Northwest Properties

    Submitted by Sandra Hanis

    Buyers agents are often confronted with the issue of lead based paint in homes built before 1978. We find that buyers in the Northwest are typically not overly concerned with the issue and most people who are looking at older homes are aware that it will be an issue in their purchase. I have had buyers do their own testing ( not always effective) or you can employ many accredited lead based paint inspectors. This inspection is not usually part of the standard home inspection. An excellent source of information is available at our links at www.roblevy.com.

     

    This source tell us that 2/3 of homes built before 1940 and 1/2 of the homes built from 1940-1960 probably contain lead paint on the interior or exterior. Some homes built after 1960 also contain lead paint. In 1978 the product safety commission mandated only a trace amount to be acceptable in paint manufacture. If there will be infants or pregnant women in the home, it is a good idea to have it tested before removing or disturbing the paint surface. It is often thought that painting over the surface will contain the paint and that is not true. The old paint can loosen and release lead dust. The most important thing is to be aware that it can be a hazard though something that can be dealt with in an effective way with little knowledge and care.
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    Hillsboro the Next Pearl District?

    Monday, May 7, 2007
    by Rob Levy, Prudential Northwest Properties

    Submitted by Sandy Morley

    The skyline of Hillsboro may see a change if condos 20 stories tall are developed in the next 20 years.  The city is already recognized for Intel's Ronler Acres campus, Orenco Station and Tanasbourne shopping helping Hillsboro win "Best New Suburb" by Sunset Magazine.  Planners envision developing the area south of Northwest Cornell Road as the new hot location for high-income singles and two-member households who prefer not to live in Portland.

    Many major cities have suburbs of this scale although Portland is not usually considered for this type of development.  Initial plans show as many as nine 20-story buildings and a number of smaller towers housing condos, retail, office space and research centers located around a 35-acre park.  Imagine a "Pearl District" for the suburbs with transportation, upscale livability and many neccessities within walking distance.

    With the opening of a new Genentech Inc. location and a handful of other big name companies city planners estimate 7,000 to 8,000 new jobs in the Hillsboro area and over 270,000 new residents to move to Washington County in the next 25 years.

    Today I took a phone call from a prospective buyer looking to move from California to Hillsboro to work for Genentech.  The timing of her call and the Sunday Oregonian's article on the possible new Hillsboro development may be a sign that Hillsboro could be the next hot place to buy!  While we may not know for another 25 years if it happens, it will be interesting to see a suburb develop  that could be the first of many for large cities across the nation.  Once again the Pacific Northwest is embracing new ideas and leading the nation as the best place to live! Okay - maybe that is just my opinion :)

     

     

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    St. Johns Parade - Why I Love this Neighborhood!

    Monday, May 7, 2007
    by Rob Levy, Prudential Northwest Properties

    Submitted by Kate Baldus

    This Saturday, May 12th is the 45th Annual St. Johns Parade!  The theme this year is "Celebrate Community Volunteers" and usually draws a couple thousand spectators.  With the nice weather in the forecast it is the perfect activity to bring your friends and family to.  Find a spot along North Lombard near Anna Bannanas, Proper Eats, or Big Kahunas and take in the sights!  Classic cars, bands, street acts and floats will make their way down Lombard from North Buchanan to North New York ending at the community center.  The parade begins at noon and usually lasts until about 2 pm.  The festivities in the St. Johns Plaza begin at 10 am until about 6 pm.  Vendors will provide food, beer gardens and don't miss the hula dancing at Big Kahunas!

    The best part about living in Portland is welcoming people of all ages to our neighborhood and celebrating the community spirit.  I hope you can make it too!  (You might even see me on a float!)

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    How Important is your Credit Score? Mine Just Got Me a Sweet 2007 Acura for 1.9%!

    Monday, May 7, 2007
    by Rob Levy, Prudential Northwest Properties

    Submitted by Shawn Headlee with Columbia Mortgage                                                   

    Happy Monday All!!  I had been researching buying a new car for months and finally went and did it.  This weekend I bought a 2007 Acura TL from Ron Tonkin Acura and love it.  Black on Black leather - awesome.  I was debating on how much of it I wanted to finance when they offered me 1.9% for 36 months.  Now, not everyone will qualify for that rate, but I knew my credit was good so I went for it.  Within 15 minutes I was signing the paper work for my first new car!!  The point I am making is that focusing on keeping your credit spotless saves not only time in those situations, but saves you a lot of money in interest.  This goes for purchasing a home also.  Unfortunately I can’t offer 1.9% on a home loan!  J

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    Farmers Markets in the Portland Oregon Area

    Thursday, May 3, 2007
    by Rob Levy, Prudential Northwest Properties

    Everyone knows Portland, Oregon is an eco-freindly area, and as a result there are lots of natural foods stores here in comparison to similar sized cities. But starting at this time of year we start to see our farmers markets spring up.  There is a list of these under "Reccomended Links" at www.RobLevy.com but the top ones are the Portland Farmers Market which offers three locations.  Also the Beaverton Farmers Market opens May 12th, and the Tigard Farmers Market opens on May 13th.   There are many other Farmers Markets in the area from Forest Grove to Gresham, and these can be found by clicking HERE.

    We encourage you to support our local markets, we do and let alone are we supporting our local farmers, we get to eat fresh, locally grown produce too!  Have fun, its one of the best parts of living in Oregon!

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    Cannon Beach or Bust!

    Wednesday, May 2, 2007
    by Rob Levy, Prudential Northwest Properties
    Submitted by Shawn Headlee
    Hello all!  I Spent a wonderful weekend at the coast.  My appraiser I send all my business to purchased me a gift certificate for the Arch Cape House Bed and Breakfast. Arch Cape is 8 miles south of Cannon Beach and wonderful old property with lots of character.  Barbara, the owner, cooks a fantastic 3 course breakfast everyday that is included in the room charge. We spent a day in Cannon Beach and another in Seaside. The weather was great considering you never know what you will get on the Oregon coast in April! 
    I found it interesting to talk to locals about real estate. They all stated that they would never be able to own a home due to the crazy price appreciation over the last 10 years. I let them know that I had just refinanced a clients 2nd home in Cannon Beach and it appraised for 1.6 million. They just laughed. 
     
    I hope you all get a chance to go to the coast for a weekend soon, this time of the year is great due to smaller crowd. September and October are also great months to go also. The weather is a bit warmer and the kids are back in school.
     
    Have a great week!!
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    Displaying blog entries 81-90 of 117

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