RISMEDIA, December 12, 2006—There are many strong feelings among agents and brokers about the changes going on in the industry, and none more charged than when the subject turns to discounted or negotiated commissions. It is well known that a common strategy to demean a profession is to try to commoditize the function, to make claims that “anyone can do it, no special knowledge is required,” and to otherwise mock a profession. Use of such statements like “used car salesmen and Realtors will say anything to get a sale” are another well known technique.

RISMEDIA, December 12, 2006—A slowing real estate market might well boost inventory and dampen commissions in the short term, but smart brokers are seeing it as a chance to take a deep breath, reflect, and, ultimately, improve their bottom line.

Rather than slashing costs, savvy brokers are seeking to increase productivity and sales staff, recruiting top agents, looking to acquire smaller firms, and accelerating a shift from print advertising to marketing on the Internet.

“When things are really good, everybody gets a little lazy,” says Steve Baird, president and chief operating officer of the Chicago-based real estate giant Baird & Warner. “This is an opportunity to reposition yourself in different areas, to look at how you can do things more efficiently, differently.”

Most housing markets experiencing slowdowns aren’t facing fundamental economic problems like job losses and out migration and will see prices correct, rather than collapse, in 2007.

That was the outlook of housing experts who participated in a conference call discussion Monday, “Housing Forecast 2007: Inside the Crystal Ball,” moderated by Inman News publisher Bradley Inman.

Barring an unforeseen jolt to consumer confidence or a sudden rise in interest rates, panelists predicted that nationwide, the volume of home sales in 2007 will be similar to or slightly below 2006 levels. But in order for that to happen, prices will have to come down in areas that saw rapid appreciation during the boom years.

Guidelines issued by the U.S. government last Thursday to prevent imprudent commercial real estate lending are overly restrictive and could easily backfire, says the NATIONAL ASSOCIATION OF REALTORS®.

The rules may cause many banks — particularly smaller, regional banks — to reduce lending to the commercial real estate market.

“NAR recognizes the important role bank regulators play in protecting the soundness of the nation’s economy,” says NAR President Pat Vredevoogd Combs. “However, we are concerned that today’s actions may be more harmful to the commercial real estate industry than helpful.”

Commercial Market Remains Strong