1. Dual Agency – The potential (and existence) of a conflict of interest is so overwhelming that there could never be a good argument for dual agency. If it was appropriate, attorneys would do it.
2 . Commission Structure – The unwillingness to separate the commission and allow the consumer to negotiate each side individually says to the consumer that we are perpetrating a scam and deteriorates our standing with them.
3. NAR Website and Advertising Campaigns – Just try and find anything on this website. It is beyond horrible. And the advertising campaigns make us look like total idiots. Our hard earned dues are continually flushed down a toilet by the management of the Association. Check out Narwisdom.com for more blunders and gaffes.
4. Ethics and Regulatory Enforcement – No one gets thrown out of the NAR for violating the Code of Ethics. And very few if any real estate agents lose their licenses to practice. The states and the associations make their money by having more members, therefore it is counterproductive to toss out any potential dues paying agents.
5. Banks – Banks are the reason for almost all of the market problems. Their lax monetary policies created a hyperinflated market that has caused all of the current foreclosure and short sale problems of today. They don’t care about people, their policies and procedures are ridiculously antiquated, they answer to no one and they create this same indifference in the agents that are working with them. The management teams at banks are the worst executives in America.
6. Licensing Requirements – The barrier to entry is a pulse and a check. No need to speak English or have any reading comprehension.
7. Brokerage Business Model – Hire anybody with a license, charge them as much as you can and hope someone sells a home to their aunt, cousin, brother or sister. Collect your cut. Repeat. No need for training or minimum sales requirements. In fact, lets create a multi-level marketing company (pyramid scheme) where you don’t even need to sell homes. Be sure to bring your cards to church this Sunday.
8. MLS Companies – A worse run organization can only be found running Realtor.com. Build higher walls around the data, fine agents for giving you the data, waste millions on unneccesary programs and sit in your ivory towers collecting my money.
9. Ourselves – We need to stand up and demand that changes be made. We need to stop accepting the status quo as the only way to do business. In some areas, we need to rebel against that which is destroying this industry, be it our own association, our own brokers or our own complacency.
Did I miss anything? Let me know.
Previously published here.