Real Industry Needs Reform
I think most people that have given it much thought and aren't agents/brokers themselves realize that the real estate industry is in serious need of reform. Should someone without a college degree be making more money than a lawyer for doing half as much work? Should the system fundamentally put the interests of the real estate agent in direct conflict with those of his clients? Should real estate agents be able to buy up all the best deals for themselves and their friends/family before their clients ever know the deals existed?
Again, unless you are benefitting from this system, it is pretty clear that it is not working for the public. I propose the following reforms. Please comment and offer additional suggestions. Maybe we can start a reform movement right here and right now, and this legislation can someday become a reality.
1. Eliminate the broker-agent apprenticeship system. Make the requirements to become an agent more stringent, but don't force them to be in thrall to a broker.
2. Make the MLS public, just like travel agents had to deal with Travelocity, etc. If agents are truly offering a valuable service and not just holding the MLS hostage, this should not affect them.
3. Require agents to charge by the hour. No more commissions based on sales price, which not only results in agents being paid out of all proportion to the service being provided, but also creates serious conflict of interest issues.
4. Make it unlawful for real estate agents to purchase or own investment property. Make it unlawful for real estate agents to purchase investment property for anyone with which they have a personal relationship.
5. Require real estate agents to hire another agent when they purchase property. And make it unlawful for that agent to have any personal relationship to the purchaser.
6. Require the real estate industry to provide to the public the same sales contract and leasing templates they provide to real estate agents. And make it unlawful for real estate agents to discriminate against self-represented buyers or sellers in any way.