The editors of the real estate news site Inman News have introduced a list of 10 suggested reforms for residential real estate. I happen to think these are all very interesting, but of course those who've learned to game the system in their favor are already writing in with howls of protests. There are LOTS of things to be fixed in this country, and I think it's courageous of Inman, which depends on tens of thousands of subscriptions from real estate brokers' Web sites, to at least start a dialogue.
From an editor's note: Inman News has compiled a list of 10 reforms for the real estate industry. The list incorporates ideas shared by readers in our Roadmap to Recovery project, in which we asked you for your input. We were overwhelmed with the response. The compilation below is our best effort to summarize these reforms.
The suggested reforms are listed below -- in order to read the full posting you need to have a subscription to the site:
1. Create a more effective regulatory framework for real estate and mortgage professionals.
2. Reform the mortgage origination process.
3. Promote a more efficient real estate industry, reducing costs and promoting services that favor the consumer.
4. Ensure competition and transparency in the way real estate agents are compensated.
5. Consolidate MLS information into a single national database.
6. Real estate professionals should provide buyers and sellers with vastly improved market analytics.
7. Reform the mortgage securitization process.
8. Reduce settlement services costs, regulate bundling of services to prevent price gouging.
9. Ensure affordable housing, smart development.
10. Remove barriers to alternative business models.
2 comments:
If those reforms were enacted, the real estate sales model as we know it would come to an end. There is no way the 6% model would survive with freedom of information in the housing market. Also, if realtors actually had to add value to the transaction through useful market analysis and other means, very few of them would be capable of doing it. I can see where the National Association of Realtors would strongly resist these reforms. Inman News showed great courage in publishing them.
I know the realtors I work with add a lot of value to their clients. As a Mortgage professonal, I am curious how much more reform could be added to the origination process. Liek any professional, the level of experience, advice, and knowledge differs wth every single loan officer. This is why some people are worth the fees they charge and some aren't. One of the items i think that needs reform is a different licensing process for Loan Originators. Currently, a Loan Originator needs a Real Estate license. Also, i kow of many people pretending to be loan officers who actualy work for mortgage broker shops that operate on a multi-level marketing platform that pays people under the table to originate loans.
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