<HTML> <HEAD> <title>WebForm1</title> <meta name="GENERATOR" content="Microsoft Visual Studio .NET 7.1"> <meta name="CODE_LANGUAGE" content="Visual Basic .NET 7.1"> <meta name="vs_defaultClientScript" content="JavaScript"> <meta name="vs_targetSchema" content="http://schemas.microsoft.com/intellisense/ie5"> <META http-equiv=Content-Type content='text/html; charset=UTF-8'> </HEAD> <body > <TABLE id="Table1" cellSpacing="1" cellPadding="1" width="100%" border="0"> <TR> <TD><b>Comment Number:</b></TD> <TD>518795-00334</TD> </TR> <TR> <TD><b>Received Date:</b></TD> <TD>11/10/2005 12:05:44 PM</TD> </TR> <TR> <TD><b>Organization:</b></TD> <TD>iDeal Value, LLC</TD> </TR> <TR> <TD><b>Commenter:</b></TD> <TD>Orsi, Terrie</TD> </TR> <TR> <TD><b>State:</b></TD> <TD>NC</TD> </TR> <TR> <TD><b>Agency:</b></TD> <TD>Federal Trade Commission</TD> </TR> <TR> <TD><b>Rule:</b></TD> <TD>Competition Policy and the Real Estate Industry</TD> </TR> <TR> <TD><b>Docket ID:</b></TD> <TD>To Be Added</TD> </TR> <TR> <td colspan='2'>No Attachments</td> </TR> </TABLE> <hr/> <b>Comments:</b><br/><br/> When beginning with another firm as a salesperson the idea of 'negotiating' the fees the firm charged with the client was not an option and if such a fee was reduced it would come directly out of the agent's portion and not the firm's portion of the commission. I honestly never knew until I became my own broker-owner that every aspect of the seller or buyer contract was negotiable especially the commission fees, infact in N.C. it is illegal not to inform a consumer of that fact. That I can say in many firms is not occurring, few still realize that consumers/clients can and should negotiate the terms of their contracts with agents/firms, most are not informing the consumer that their fees are negotiable. The 'limited or discounted' providers for real estate services are giving consumers/clients a choice in selling or buying real estate. Many firms list in the MLS for 'flat fees' and the service is limited in nature but few firms are informing their clients how little they will participate for that reduced fee and how much 'exposure' the client will have with the entire transaction. The other factor is the idea that once put into the MLS many other real estate firms may restrict the showing of 'limited or discounted' listing companies by only searching for homes listed under 'full service'. This has the potential of seriously affecting the limited service business along with creating a 'division' between agents/firms and eventually consumers. The agents showing limited service listings feel they are working more than they should and exposing themselves and their firms to more liability. This is ridiculous the buyer's agent 'job' never changes. They should be performing the same duties with due diligence in a fair and honest manner regardless of the fee 'set' by the MLS, seller or buyer. Greed is the 'real issue' in the real estate industry. The studies through NAR are limited and show the figures based upon the real estate professionals with figures to show. Most are paying firms to hang their license in the hopes of getting that one big sale. The 'bread and butter' agents for their firms cannot afford to rock the boat by allowing clients to negotiate fees affecting their bottom line. While other agents are the major players in their firms and they tell their clients they cannot negotiate their fees, some charge higher fees &amp; retainer fees because of who they are. These agents can make deals for multiple transactions at reduced fees and their firms allow for those agents to 'do what it takes' to get the client but never reducing the agents bottom line. If your looking for consistency and fairness for the consumer in the real estate industry I believe looking at how the industry is run 'behind' the scenes will give you a better view of why the real estate industry continues the bad habits it has been allowed to perpetuate throughout the years. Most agents/firms have a silent policy that unless the consumer/client asks they don't need to reveal. Well here are some areas of the real estate industry consumers need to know about, afterall, it can and does affect THEIR 'bottom line' when buying or selling their next home. Do they tell the person relocating that the firm 'referring' is receiving 20% or more for their name? Or that their company receives 25% or more on the incoming or outgoing employee from relocation real estate companies? Does the agent/firm disclose that every aspect of the contract is negotiable including the fees? What does the consumer receive when being represented by one firm over the other, what is the difference of services offered? The consumers today have the ability to search/find and do much of the work of a real estate professional. I believe that limited service companies are here to stay and the real estate industry needs to embrace the change. Guidelines for services provided to the public should be mandatory for all limited or full service companies. </body> </HTML>