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Discount Brokers

March 26, 1989

The article on discount brokers by David W. Myers (March 12) shows a definite lack of research and understanding of the real estate industry.

Real estate companies, such as Century 21, Jon Douglas, Fred Sands or Tarbell, etc., are merchandisers, as opposed to Help-U-Sell and other discounters, who are "consultants."

Consultants, for a set fee, write up the listing contract, do not submit it to the local Multiple Listing Service, provide the seller with a sign on his property with his phone number, provide the seller with open house signs and advertise the home in their own magazine.

The seller is responsible for taking calls concerning his home, showing his home to anyone who wants to see it, whether they are qualified buyers or not, and must conduct his own open house to draw buyers. The "discounters" appear when the seller has generated an offer and will then open escrow. The seller must monitor the escrow proceedings to ensure a "closing."

All of these things a seller can do for himself for no fee. But, if the sellers want service, effort and protection, they will have to go to a merchandising real estate company that advertises, shows the property and does the open houses.

Further, to state that commissions should generate no more than they did four years ago is ridiculous. Costs have risen for the real estate industry tremendously in the last few years.

Also, to say that Re/Max agents can charge less because they are 100% commission-awarded agents is again showing a lack of knowledge. They have fees to pay and costs to bear like everyone else.

The bottom line is service. You get what you pay for. For a house to be sold, merchandising is the safe, sure way.

JOHN P. NEWE

Diamond Bar

Newe is with Century 21 E-N Realty.

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