Is it time for more stringent regulation in the real estate industry?

By
Real Estate Agent with Prudential Allstar Realtors 16784

This subject might not appeal to many real estate practitioners because none of us like regulations.  However, with the barrage of misleading information out there, I wonder if our lawmakers are paying attention.  After all, it was only in the recent past that we almost experience financial collapse.  Were there co-conspirators from the real estate industry?  Will we be on the radar screen in the foreseeable future?

As a consequence of the aforementioned crisis, the current administration is taking measures to reform the way business is done in the financial industry.  Yes, they are re-writing the rules of the game.  Considering the fact that we are intricately related to the financial industry, why would they not look at us?  One only has to take a look at the latest foreclosure statistics to see that there are some serious problems that need to be addressed. 

Besides that however, there are some very reputable Realtors who are addressing problems that exist in the real estate industry.  Below, I have cited two very prolific bloggers, Lenn Harley of Rockville, Maryland and Ruthmarie Hicks from White Plains, New York. I have provided an excerpt from their blogs.

Lenn Harley, Real Estate Broker, Rockville, MD in her blog entitled, "LOOKING AT REAL ESTATE TEAMS AND TEAM SPECIALISTS," addressed the following questions: DO REAL ESTATE "TEAMS" EXHIBIT EXPERTISE.  The concept of "teams" in real estate practices is popular and often compared to medical "groups".  I see little to no resemblance and, in fact, assigning a title of specialty such as "Buyers Agent" to a member of a team is often misleading to the consumer."

Ruthmarie Hicks, Associate Broker, White Plains, NY in her blog entitled "This Brokerage Has 750 Listings.....So they must be the best! (Part 1)"

Here are some of the issues she brought up, "Does size really matter?  Does the number of listings or the size of the brokerage have anything to do with the ability of the agent to market and sell a home successfully? Is it the brokerage or the agent that is the determining factor? What Does the Brokerage Bring to the Table?"

What is your opinion?

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Lenn Harley 11/01/2009 05:27 AM
  2. Sybil Campbell 11/01/2009 10:49 PM
  3. Don Rogers 11/02/2009 05:44 AM
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Location:
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Comments 49 New Comment

Rainer
33,939
Linda DeVlieg
Albuquerque Real Estate
Coldwell Banker Legacy

I might be missing something here, but I'm confused as to what the blogs about whether a team is a valid business structure or discussions about the size of a big real estate company has to do with regulation?

November 02, 2009 10:05 AM
Ambassador
1,893,544
Steve Hoffacker
New Home Sales Trainer/Coach, Sales Books Author
Hoffacker Associates LLC

Lloyd,

In the first place, real estate is local. In the second place, real estate salespeople are licensed by their respective states. Therefore, the federal government has no role. :)

Steve

November 02, 2009 11:30 AM
Rainer
12,826
Dave Hymes
El Dorado County, CA - Coldwell Banker

LLoyd, I think a large part of the blame for the financial crisis was BECAUSE of government intervention and the last thing we need in any industry is more government intervention. It seems every time government gets involved in trying to fix something they screw it up even more...HVCC would be a perfect example. That said, I think it would be a good idea if the industry did a better job of policing itself in regard to ethical and educational standards.

November 02, 2009 01:31 PM
Rainmaker
694,339
Larry Brewer
Nashville Real Estate
Benchmark Realty LLc

Any changes brought on by the government will probably make a sick market even worse. The problems we have are not caused by realtors, they are caused by lending money to people who can't make the payments. I don't know how regulating realtors can help that, except to find another opportunity tax for the Obama team.

Wealth redistribution as he says. Don't we all feel wealthy?

November 02, 2009 04:23 PM
Rainmaker
494,130
C. Lloyd McKenzie
MBA - Prudential Allstar Realtors -
Prudential Allstar Realtors

The overwhelming majority of respondents to this post are opposed to more government intervention.  I agree with that point of view also.  But let's face it, there are problems in the real estate industry. This blog merely suggests the possibility of government intervention. It is a subject that all of us should be talking about.  To take it one step further, we should be brainstorming ideas of how we are going to address problems that exist in our industry.  If we do not, the government might just step in and fix them.  Far fetched? Look at the financial industry.   

Here is Chris Olsen's idea, "total transparency to remove the hype, spin, exaggerations, puffery, false claims, misleading self-promotion and the like so consumers can truly determine what it takes to be competently represented."

Sorry Linda, it wasn't meant to confuse anyone.  Actually, "discussions about the size of a big real estate company has to do with regulation?" was not the subject of the blog. The two excerpts were merely used to support the premise.  There is a lot of chatter, that might have already caught the attention of lawmakers.


 

November 03, 2009 09:47 PM
Rainmaker
494,130

C. Lloyd McKenzie

MBA - Prudential Allstar Realtors -
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Additional Information

Albuquerque and Rio Rancho, New Mexico are among the most stable real estate markets in the United States. This has caught the attention of the national media. As such, it is incumbent on local Realtors to provide information about our cities for those interested in investing, relocating, or visiting. My goal with this blog is to highlight issues or topics in real estate, and where appropriate apply them to the local markets.