Talking About Prices

By
Education & Training with ActiveRain

In light of recent news articles highlighting the state of real estate commissions many members on this network have engaged in tangential discussions with their colleagues. Many of these discussions have gone into areas that the put participants at risk.

I have brought to you the consequences of talking commissions before. We've had it re-featured a few weeks ago. Since then I've had a few members disagree with me on the content of that post. I've even had some tell me that this is a conspiracy propagated by The National Association of Realtors, to keep prices high.

To clear things up a bit today I spoke with Deputy Assistant Director Of The FTC's Anticompetitive Practices Division, Patrick J. Roach.

Mr Roach stated it very clearly for me. Do not discuss prices with your competitors. Anything beyond that opens you up for an investigation for possible criminal conduct.

Mr Roach offered a second piece of advice. He said do not sit there quietly while such a (price) discussion is going on. Make a loud demonstration of stating that you will not be a part of this conversation and then leave. I'd like you to flag the post and tell us why you did so that it can get taken care of it as soon as possible.

Mr. Roach referenced the National Association of Realtors saying that they very wisely talk about not engaging in discussions & agreements about pricing.

I am encouraging you all to review NAR's Field Guide to Antitrust. And once again I am saying that you cannot discuss pricing with each other. Leave that for a talk with your clients and your office.

Thank you,

Caleb

 

Update.

A reminder everyone The purpose of this is to protect the community.  You may had these discussions off-line legally or not.  But this is a new medium where your discussions are recorded and public.  You may not be accustomed to this but what you say is permanent record here.

Posted by

---

Keep Up In the Rain!
ActiveRain FacebookActiveRain TwitterActiveRain YouTubeActiveRain Google+ActiveRain LinkedIn

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Tags:
commissions
guidelines
pricing

Comments 81 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainmaker
210,802
Lucky Lang
SRES, Davenport, Iowa Real Estate
Mel Foster Co.

Caleb,

Right ON!

But Caleb's Law does have a nice ring to it.

Lucky :)

May 21, 2007 05:04 PM
Rainer
70,148
Caleb Mardini
Len and Fred  I questioned the FTC guy about this and he said that the "traditional" remark wasn't a violation.
May 23, 2007 09:51 AM
Rainmaker
206,379
M. Suzi Woods (Gravenstuk)
Suzi Woods, Prior Independent REBroker in MS
NOW Sharing the life and spice of the GC one day at a time
Since the excitement has died down with this post, I have a question. Actually, its been a question for a long time. I think it may be more on the "Truth in Advertising" area than the Anti-trust. Every day we read ads, websites and profiles here and other places in which the agent or REO is advertising "We will or (I will )save you thousands. Or, even the more general "save on commissions". If we don't know what figure we are comparing to--how can anyone, ever claim to save any amount?" Check out some of AR profiles to see what I mean. Surely, it must be legal because so many people do it. But, is believing it without a point from which to save, logical?
July 16, 2007 09:55 PM
Rainer
70,148
Caleb Mardini

Suzi,

Thanks for the question.  I do think it has more to do with advertising.  The thing is "saving" can ultimately end up being pretty subjective.  It would really depend upon the specific claims of a specific ad.  I know that when I've worked with people, my claims of "saving" them money were about what I could offer them in terms of time, preparation, and negotiations.  So regardless of my fee, I knew I was, "saving" them quite a bit. 

July 17, 2007 02:20 PM
Rainmaker
206,379
M. Suzi Woods (Gravenstuk)
Suzi Woods, Prior Independent REBroker in MS
NOW Sharing the life and spice of the GC one day at a time
Thank you for your response Caleb. I think I am too literal at times. It seemed to me that saving had to have a starting point. I think I need to chill out and claim savings myself:-)
July 17, 2007 04:42 PM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the clip to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Staff
202,809

ActiveRain Real Estate Network

How Can We Make Your Day Awesome?
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: