As reported in the Observer yesterday, North Carolinas three largest Realtor associations in Charlotte, Greensboro and Raleigh are trying to nix part of a 2008 rule that forces buyers agents to disclose whether they are also set to receive compensation from the homes sellers. The rule is the result of findings that many homebuyers are unaware that their agent may have an extra financial motive (or hidden bonus) for showing them particular homes.
So far, the reasons given by the Realtors for doing away with the rule is that its burdensome and that it could confuse customers. Its revealing that its the largest real estate companies that are complaining, since they are more likely than smaller ones to have both the sellers and the buyers agent, which makes them more capable of hiding the extra incentives. Others are arguing that ... here it comes ... the government is interfering in a free market. But in a truly free market, wouldnt all the information be readily available to both buyers and sellers? And, if the realtors are so concerned about their customers confusion, shouldnt they want those customers to know everything thats going on when they buy a house. Or, as if often the case in these kinds of discussions, do the critics mean realtors should be free to manipulate the market for their own ends?