I could have said, “The Big Business That Hates ITS Competition”, but that may not be entirely true. I don’t think traditional real estate HATES the competition, I think that simply want us to disappear. And with oodles of money, lobbyists, and the heavy momentum of “tradition” on their side they are certainly making small gains on the realization of this dream.
With the recent decision in Tennessee which bans cash rebates to buyers, the honorable Gov. Phil Bredesen shows his true colors. But are they red, white, and blue? You decide.
Is it American to try to outlaw competition? Because that’s exactly what this law attempts to do. A new wave of real estate companies offer cash rebates to buyers. This is strong competition from a relatively new type of brokerage, and it’s bound to benefit the consumer because it means more money stays in their pockets, not the pockets of real estate professionals. There are currently only about ten states with anti-competitive laws like this on the books. And the trend is that these old laws are crumbling (like in West Virginia, Kentucky, and South Dakota). So this move by Gov. Phil Bredesen is all the more confusing.
In the Internet-induced age of unavoidable transparency and instantaneous commentary by the blogosphere, a decision like this is bound to be ridiculed and exposed for exactly what it is: a protectionist nod to the deep pockets of traditional real estate. Let’s protect the good ol boys for a while. Let the gravy-train roll on for a few more months or years.
Am I alone with this opinion? The Unites States Department of Justice is firmly against this protectionist decision in Tennessee, and has already sent a letter to the honorable Gov. Bredesen. Hmmm, I wonder how long it will take them to reverse this decision?
A note to the good people of Colorado: our company is here to stay. Colorado is one of the 40 plus states that allows cash rebates to buyers, and our company has already rebated around $100,000 to Colorado real estate buyers and sellers. We’re proud of that fact. And we’re proud to be part of the solution when it comes to the changing face of real estate.