<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>518795-00173</TD> </TR> <TR> <TD><b>Received Date:</b></TD> <TD>10/22/2005 1:25:47 PM</TD> </TR> <TR> <TD><b>Organization:</b></TD> <TD>Century 21 Alliance</TD> </TR> <TR> <TD><b>Commenter:</b></TD> <TD>Wetzel, Andrew</TD> </TR> <TR> <TD><b>State:</b></TD> <TD>PA</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><b>Attachments:</b></TD> <TD><a href='518795-00173.pdf'>518795-00173.pdf</a>&nbsp<a href='http://www.adobe.com/products/acrobat/readstep2.html' target = _blank >Download Adobe Reader</a><br></TD> </TR> </TABLE> <hr/> <b>Comments:</b><br/><br/> As a full-time Real Estate agent committed to providing outstanding service to my clients and the public in general as well as being committed to working ethically and professionally with other Real Estate agents, I am shocked and appalled that the federal government has chosen this path (questioning our competitiveness) to attack the Real Estate industry. I have spent countless hours taking continuing education courses, earning Designations/ Certifications and acquiring knowledge through reading, interacting with other agents and participating in Board related functions. I presently serve as my local Board's Grievance Committe Co-Chair, as a Mediator for the state Board and as my state's representative on our Multiple Listing Sevice Board of Directors. I believe that these opportunities as well as my 9+ years of experience provide me with a unique opportunity to really assess the state of my profession from "the inside". I readily admit that we have problems as do many industries (including politics and govermnent). However, they do NOT include problems with competitiveness. Given the sheer number of Real Estate agents presently in the market, it is ridiculous to claim otherwise. We must find ways to differentiate ourselves in order to survive and this is the essence of competition! I would rather question how we differentiate ourselves and whether this is done ethically and professionally. As far as competition, the Real Estate industry is a model that works. While several large companies enjoy prominence, any can compete and none dominates because there are so many market niches and numerous business models from which the the public may choose. As "independent contractors", we are truly an industry comprised of small businesses and individuals who represent the entrepreneurial spirit this country was founded on. Real Estate agents serve localized markets (Real Estate IS local!) where we compete for business each and every day. Numerous business models offer a variety of commission plans with varying levels of service and representation. As I alluded to earlier, I think that rather than being concerned with competition, a better focus may be on establishing minimum service standards and making certain that the public better understands what different commission levels equate with in terms of service levels and representation. I feel that a majority of the public does not understand the array of services that are available and many assume that we are all the same. This erroneous assumption creates many problems and problems in Real Estate can be costly! Real Estate provides an outstanding opportunity for anyone who wishes to enter this profession. Barriers to entry are low: if you are willing to take the time to learn the business in your local market (in PA you are required to take two courses) and pass the state license examination, there is nothing to stand in the way of success in this industry. There are quite a variety of backgrounds and personality types that succeed here: the individual is the only limiting factor! From our entrepreneurial nature arose the Multiple Listing Service. Agents saw the need to cooperate with each other (is this anti-competitive?) in order to better serve their clients. Rather than having an agent or a company "control" a local market (as occurred in the past), information is readily shared and this generates better awareness, CREATES competition and causes the high selling prices that we have seen. Having said that, the MLS is truly misunderstood and most of the fault for this may be that the term is used inapproprietly causing the public (and perhaps the Goverment) to misunderstand what it is. In my area, our MLS is a cooperative effort created, run and owned by the local Boards. It is a tool that we created and operate to facilitiate our business: it is NOT a public utility, nor should it be. Part of the confusion has arisen simply by advertising that the public "may search the MLS" which is emphatically disingenuous and wrong! The beauty of the MLS is that it allows Real Estate Brokerages of every size to compete on a level playing field. It gives all of us access to an inventory of property listings that we are able to show and sell to our clients (or analyze to assist our sellers). The MLS doesn't discriminate. All MLS members are treated equally, regardless of their size or their business model and yet the rights of property owners and their listing Brokers are respected. The rules of the MLS achieve a delicate balance between respecting the rights of listing Brokers so they will continue to be willing to contribute their inventory of listings and permitting cooperating Brokers the ability to show those listings and be assured of receiving compensation if they bring about a successful sale. The MLS information is even distributed to the Internet via a variety of web sites so that the public can search those web sites (but NOT search the actual MLS) which enhances their ability to compete in the Real Estate market. Unfortunately, this has created the illusion that the public is searching the MLS directly and some have come to believe that they have the right to do so. I believe that having access to any portion of the MLS database is a PRIVILEGE and NOT a RIGHT we need to address this! From what I see, the new policy is a win-win situation for consumers and Real Estate agents. It works for consumers because it gives home sellers a choice whether to permit marketing of their property on the Internet and in selecting an MLS member with whom they want to work. The new policy allows home owners to "opt-in" and have their property displayed on other Brokers' Web sites even if they are working with a Broker who does not participate in sharing his listings for display by his competitors. It works for us because it gives us the right to control where our listings are displayed on the Internet. I recognize that Boards and MLSs in other market areas operate differently than those in my area. While I can't say that my Board and my MLS are the best, I feel quite fortunate that they are run as well as they are and, based on my experience, I know that many others leave much to be desired. I end with this point to suggest that one problem we face is how other Boards and MLSs conduct themselves. While Real Estate is local, certain standards must be national and that would be a good place to start. However, questioning competitiveness is wrong and does not serve the public. </body> </HTML>