Thursday, May 17, 2007

Realogy's response to 60 minutes segment

This is a letter written to one of the CBS producers from the President of Realogy, Alex Periello. Which so happens to be the parent company of Coldwell Banker Dallas-Ft. Worth. Thought it was well put. Basically it says the consumers will decide which business models are successful and which are not. Coldwell Banker has been around since 1906. So I’m not too worried.

Dear Mr. Fager:
Your story on the real estate industry that aired on May 13th had more holes than a leaky roof.
Putting aside the inaccuracies regarding "sacrosanct" commission rates, lack of industry oversight and state governments conspiring to stifle competition, the segment grossly oversimplified the complexity of buying and selling a property.
Real estate brokerage is a performance-based industry. Clearly, not all real estate companies are alike. Results will vary dramatically based on a variety of factors, including the experience and track record of the professional you select. Picking an agent to represent you based solely on discount, rebate or other cash back scheme may seem like a good idea at first glance, but not always at the closing table when all is said and done.
The bottom line is that consumers have ample choice when deciding which real estate company and business model they prefer to represent them in a transaction. Competition is good for the consumer and the industry and is the basis of our free market economy. At the end of the day, the companies that offer the best value proposition to home buyers and sellers will prosper.
Alex Perriello
President & CEO
Realogy Franchise Group

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