60 Minutes, NAR and Redfin - Ratings Trump Substance
Of course, that's precisely what CBS wanted to accomplish. By presenting only the most divergent and highly polarized points of view, ratings go up. But was the consumer served? Not really, as that wasn't the goal. In presenting Redfin's business model as a favorable solution to the straight commission percentage business model, and NAR's defense of it as the other side, there's no input from those in the industry with more moderate viewpoints. There are other alternatives that serve the consumer well and give them choices.
The fact is that both NAR and Redfin have positions that are indefensible and not a solution to the problem. Yes, there is a problem. But you won't be getting any help from 60 Minutes in solving it. Nor will the consumer get any help in understanding the problem, how the system works now, and how it could work better in the future.
NAR needs to quit defending the old world and see the new one. But the new world isn't the Redfin business model. Though there is room for this model and there are consumers who will desire it and be able to function in it, there are problems. Redfin wants buyers to get rebates for services that they want from listing brokers or others who didn't contract for them. It's just as much a problem to view it from the NAR perspective of "we're worth X% because of all that we do." We're worth precisely what an informed consumer thinks we're worth.
It's just more difficult to inform consumers when sensationalism instead of substantive journalism is all that they see. There are progressive and non-traditional REALTORS® out there who could have helped put forth reasonable alternatives for real estate services, as well as new ways to be compensated for them. Though I filled out a comment form on the CBS web site to point this out, I don't think I'll be hearing from 60 Minutes anytime soon.
Here's a link to the video of the episode. Let us know what you think.
I think the insight that both NAR and Redfin positions are wrong is a great one.
Thanks Athol. I think there are a lot more REALTORS® out there that would agree, but the vast majority seem to remain silent.
Great post Jim (as always).
I never cease to be amazed at the NAR’s ineptitude in dealing with these issues (remember that campaign a while back where they were insisting that now is a great time to buy and sell a house? Wow – a buyer’s market and a seller’s market at the same time…who knew?
Redfin was the big winner in this spot. You’re right – they’re not the right business model for everyone but they are the right business model for a lot of people. And the NAR just throws gasoline on the fire by keeping the issue alive.
The NAR needs to focus on understanding what the customer wants and evolving with the customer’s needs to deliver value, not on trying to convince us that a particular percent commission is appropriate. The customer will figure that out on their own.
I E-mailed you previously about where I might be able to receive permission to copy that “CBS 60 Minutes” Video, yet at this time I haven’t received an Answer back from you.
I know you are a busy person, and Really appreciate your News Letter and insight.
Thanks
Jerome:
Sorry, didn’t get the email. I would have no idea, other than contacting CBS, as it is a copyrighted work. Thanks for your comments.
Jim