Recently on CNNfn's "Open House with host Gerri Willis, National Association of Realtors President Walt McDonald faced off via satellite with Douglas Gantenbein, author of a story for Slate.com called "Realty Bites,".

Gantenbein's story is a scathing and personal outlook on the real estate industry, which brought Gantenbein to the attention of CNNfn. The NAR agreed to appear on the TV show to "help Gantenbein understand that his experiences in real estate are unique and that there is redress for any problems that consumers face in the real estate transaction."

"Buying or selling a home is stressful," acknowledges Steve Cook, spokesperson for the NAR. "Expectations run high, and it's tough to deal with when you don't get the price you're expecting for your home. In spite of the fact that we have a million members and more transactions, and are on track toward another record-setting year, there's no evidence that there is an increase in consumers concern. Our numbers show increasing consumer happiness."

Cook explains that both McDonald and Gantenbein got about five minutes to tell their side of the story.

"There is some very basic question raised about real estate and how you go about buying and selling," explains Cook. "The first question asked was - 'What is this controversy about commissions?' We believe that all consumers should discuss terms with their Realtor up front and understand what the costs and services are, and there is never a standard commission. It's a myth and it doesn't exist. We have people who work under different terms. Consumers need to understand, where you thought you were getting something you weren't, there is redress. Under the code of ethics, Realtors are required to disclose all of that."

Continues Cook, "This was news to Doug. He said he didn't believe it. We had a discussion about competition, with one side saying it isn't a competitive business, and Walt said it is highly competitive. There are so many Realtors out there, they are cutting corners, said Doug, so I think he showed that he was confused in the interview. Walt said, apparently you have had some unfortunate experiences, and there are ways to adjudicate those. There is recourse.

"Walt was very personal, he was responsive, calm and professional. Doug had no credibility other than he is a journalist, and he writes on another subject. Whatever his expertise is that he is familiar with, he knows the terms but he doesn't know how it really works. I don't know what his objectives are," says Cook.

Gantenbein's take was a little different.

"Oh, it was typical TV -- about 10 seconds for each side to cram in a reasonably nuanced position," says Gantenbein.

"Walt: People buy or sell 6 million homes a year through Realtors and all seem very happy with things as they are.

Me: May be, but most people now do a lot of homework on the Web, and commissions should be lower as a result.

Walt: Commissions are already negotiable.

Me: Oh, give me a break. I'd like to see a home seller offer 3 percent to be split two ways.

Gerri (host): Walt, what about NAR efforts to exclude banks from real estate sales?

Walt: Well, of course the real estate market is intensely competitive already.

Me: Baloney, walk into any town and you'll find 20 brokerages all working off the same page and trying to maintain the same commission structure.

Gerri: Thanks to you both!"

"So there you go. I was amused by the size of the artillery the NAR rolled out to blast away at me," says Gantenbein.

With the last word, Cook says, "It's not perfect, it never is, and there are improvements that can be made, but out of six million transactions and 12 million sides to each transaction, not all of those are going to be perfect. I don't doubt those for a minute who say there's room to do better, but if Doug has encountered negative experiences, our concern is that he wasn't aware of procedures he could follow for redress."

See the Realty Times' interview with Doug Gantenbein soon on Agent News.

Published: September 3, 2004

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