Like many other members of the popular press, Douglas Gantenbein, author of the scathing Slate.com story "Realty Bites," is a torch-carrying member of the anti-real estate agent mob. He suggests a change to Shakespeare's line "let's kill all the lawyers" - to make it Realtors instead.

Using a preponderance of personally exasperating and disappointing experiences with agents, Gantenbein makes the case that agents are overpaid and underachieving. He suggests that "selling a house is a complex task. But so is writing a will, and an attorney doesn't ask for 5 or 6 percent of your net worth as compensation." Gantenbein suggests that consumers don't get much for their money from agents, and worse, "whether you're buying or selling, they (Realtors) rarely work in your interest," and that they favor a "quick sell, at any price." While the agent is foregoing $500 or $600 in commissions to get you to quickly sell your $290,000 home for $270,000, you'll lose $20,000 in equity, he says.

But it's Gantenbein's statement that the NAR protects its "members' turf like a crazed wolverine defends its offspring," that really gets the NAR's goat. Gantenbein accuses the NAR of fossilizing the real estate transaction by preventing the Internet from putting its members out of business like travel agents and stock brokers, "ensuring that real estate transactions still are conducted between two agents in cahoots," and "keeping commissions close to that 6 percent level when any normal law of competition would suggest they'd be lower."

Joining the discount-broker defense table, Gantenbein also castigates the NAR for "taking aim" at discounters by implementing "new rules that would allow local brokerages to bar their listings" on discounters' sites. He says the NAR also "wants to prevent online brokerage sites from funneling customers to agents in exchange for a fee."

Finally, he says that escrow companies and home inspectors do most of the "heavy lifting" in a real estate transaction and add more value than most Realtors while working for a flat fee.

Gantenbein would like to see a FSBO-only world, he says, where transactions cost two or three percent.

Showing patience and restraint under such an assault, the NAR's Steve Cook, vice president of public affairs writes Gantenbein and Slate.com the following:

Fortunately, Doug Gantenbein's trials in the real estate market ("Realty Bites," slate.com, August 16, 2004) don't reflect the reality experienced by the vast majority of home sellers and homebuyers.

America has arguably the best system of homeownership in the world, as reflected by our extraordinary rate of homeownership, nearly 70 percent—the highest in history. Realtors and other real estate licensees play a vital role in making our system the envy of the world. They are dedicated to bringing real estate transactions to a successful conclusion to the satisfaction of buyers and sellers. Their expertise pays off. Home sellers who use a professional's help tend to realize an average of 20 percent more on the sale of their home than those who choose to go it alone, not to mention the time and headaches involved in selling a house yourself. That's one reason eight out of every ten sellers choose to use a professional.

Before selecting the right real estate professional, one should understand some basics. Agents who represent buyers or sellers owe their clients a duty to place the client's interests first. In many states, agents are required by law to provide consumers with information setting forth their terms the before embarking on a transaction. There is no such thing as a "standard" commission; fees should always be negotiated upfront.

In the event of a dispute, there several avenues of redress open to consumers. State real estate commissions stand ready to take action against any licensee who engages in the type of conduct Mr. Gantenbien alleges occurs on a routine basis. Realtors , members of the National Association of Realtors who are the only real estate professionals permitted to call themselves "Realtors ,"are bound by a strict code of ethics that binds them to "protect and promote the interests of their client" and to "treat all parties honestly." The NAR also offers consumers a dispute resolution service to resolve issues between consumers and its members.

Mr. Gantenbein's article suggests severe breaches of fiduciary duties took place. Such behavior is not only rare, it's also illegal. The common law of agency and state laws require that an agent represent the interests of the client and a failure to fulfill that duty is legally actionable.

As Mr. Gantenbein can certainly attest, buying or selling a home can be a very stressful experience, especially in today's booming real estate market. Having a good Realtor on your side to help you navigate through the process can make all the difference. Today consumers can choose from more than 1 million Realtors who have voluntarily subscribed to follow fair and ethical business practices.

But the point of telling both these points of view is the vast gulf between them. The real estate industry has much to learn from journalists and homebuyers like Gantenbein. Like Americans need to understand why most of the world hates us, the real estate industry needs to understand what's behind the vitriolic statements that journalists like Gantenbein write. Why does he appear to hate the industry so much, and are any or all of his complaints justifiable?

Like it or not, voices like Gantenbein's who protest the way the industry does business are growing increasingly louder than in the past. It may be time the industry listens and does a better job explaining itself.

Find out more tomorrow in Agent News.

Published: September 2, 2004

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Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.