The people that came up with this Bill (Real Estate firms like C21 and Remax) thought they could pull a fast one and get this bill snuck through quietly – To bad none of the local Chicago papers picked this new story up. I heard that the DOJ was looking into HB4313 because it reduces competition in the market place.

David Gorman/Broker
Cashback Realty.com

Around Lake County in Illinois, they have proven to be W O R T H L E S S C R O O K S.

My experience, and I imagine that of many others, is that buyers agents often steer consumers to their own listings. I also find that I end up doing more research on schools, homes values, market trends, etc. than the so-called expert representing me.

If I am willing and able to do my own research and leg work why should I not be able to get a rebate or discount since the company I am using won’t have to provide that part of the service?

There are many educated and informed buyers like me that want an honest party to represent them in a purchase with out all of product pushing.

Why are agents so mad about Redfin coming to town? Seems to me they bring in more buyers at a time when many open houses look like ghost towns. My guess is that agents really haven’t had to work that hard for the 3% on the buyers side.

I am sure that listing agent (and her managing broker) that sold the house I just bought didn’t mind getting her 3% on a quick transaction with a preapproved buyer that CLOSED around six weeks from the listing date. My advice to full service/full cost agents either offer better service that actually meets the needs of consumers or get out of the way of those that can. And don’t try to use unfair laws to protect your outdated business model.

I love to beat a dead horse, so I’ll make a few more comments on the issue:

1) Commission rebates have long been a tool that agents use to regulate their commission. The bill was introduced to prevent this control and therefore affect the commission rate.

2) I’ll pose a couple rhetorical questions to you:

- Does an auto company that offers cash back rebates, 0% interest rates or “gifts” (Ford’s laptop, VW’s guitar, etc) rely solely on these tactics to sell cars? Does it de-value or overvalue their cars? Ofcourse not, but they are successful.

- Does an airline, hotel, bank or grocery chain that offers rewards points rely soley on these tactics to drive their business. Do the points make the plane go faster, the bed any softer, the teller any friendlier or the fruit any fresher? The costs associated with these marketing programs are are usually less than other marketing efforts.

- Why do mortgage lenders have differing loan rates for the same customer/credit score since the rates are a derivative of the Fed? Do you think we should kill competition here too make home loans them Prime + based upon credit score?

This is about Marketing. It shouldn’t be mandatory nor outlawed.

3) I’m glad we agree on something.

1. Fact: the text of the bill did not say anything about commission. The bill would amend the current law to add the following. “No licensee shall give or pay cash rebates, cash gifts, or cash prizes to an unlicensed person who is a party to a contract to buy or sell real estate.”

2. Since when do we measure the competitive nature of the market by who is able to give the biggest gift. I would argue that allowing these practices to continue only harms the consumer. An unsuspecting consumer will now make their decision based on who gives the greatest rebate and not based the best service at the greatest value. We are in essence auctioning the real estate business to the largest companies that can afford the largest kickbacks. Business is now being bought by the highest bidder. How is that pro consumer?

And if this is the model that will continue into the future how will we ever see a reduction in commission rates as a whole. If the pressure is on buying the largest portion of the business, how will consumers ever see a reduction in the rates paid if realtor have to keep increasing their costs in the transaction just to compete? I don’t see any downward pressure here, I only upward pressure.

3. I can’t help but complete agree with you on point number three. There are more important things out there to work on. This bill however worked in the consumers and the mortgage industry’s best interest. It is a shame that it didn’t