12/13/2002
By STEVE BROWN / The Dallas Morning News
Last fall, when Rick Coulthurst decided to sell his home in Dallas' Lower Greenville neighborhood, he tried something different – he paid a discount broker a few hundred dollars to put his house in the multiple listing service.
" Since I work at home, I decided I didn't want to pay a listing agent to show the house when I was there to do it," said Mr. Coulthurst, who moved to Florida.
Mr. Coulthurst handled all the marketing, negotiated the sales price and sold the house six weeks later.

If the Texas Real Estate Commission is successful in its new ruling, such "limited-service" real estate transactions could become a thing of the past next year.
After receiving complaints from consumers who've paid hundreds of dollars and gotten no sale, the state's real estate regulators have proposed outlawing home sales companies that provide only bare-bones services. A final decision won't come until early next year.
" We are looking at making sure the public is receiving the service they expect from real estate agents," said Mike Brodie, the Plano real estate agent who is chairman of the nine-member real estate commission that oversees the state's brokerage industry. "This isn't about fees; it's about a minimum level of service."

The controversy over limited-service real estate brokers is just the latest in a series of controversial issues to hit the residential sales industry in recent years.
After grappling with representation confusions, condition disclosures and Internet listings, agents are seeing further changes in what for decades had been a familiar business.
" It's what usually happens in cottage industries like real estate where people are slow to change," said Michael Abelson, a Texas A&M professor who has studied the residential sales business for years. "Most, if not all, of these changes have been for the good of the industry and the consumer," he said.

Saving money
Real estate brokers who offer limited-service listings and consumers who have successfully used them argue that the planned rule change prohibits such transactions and aims to keep agents' commissions high.
" It's a legitimate way for the consumer to save some money, and it's about time," said Glade Eckert, who recently sold three Dallas-area homes using a fixed-price listing service.
For a few hundred dollars, she paid her agent to list the homes. She said she saved half of the standard sales commission, which is usually about 6 percent.
" The important thing was to get the properties in the multiple listing service," she said. "After that, we had dozens of people look at them.
" You get all the exposure for a flat fee, and the agent accepts the calls and gives them your number to see the house," said Ms. Eckert.
Plano real estate broker Roger A. Garcia listed the Eckerts' properties and has been doing similar limited-service real estate transactions for about three years. His flat-rate listing service starts at about $300.
" I have customers that really like our service," Mr. Garcia said. "I have been in the residential sales business for 20 years, and we are very upfront and legal with everything.
" Over the years, we've only had one person who was unhappy with our program, and I gave him his money back," he said. "The people who are the most upset about this are the traditional Realtors."

Complex transaction
Full-service sales agents say that many consumers who use these cut-rate brokerage services don't understand that they are responsible for all the marketing and legal negotiations.
" A broker who takes a listing has an obligation to represent their client and facilitate a transaction," said Mike Grossman, founder of Dallas' Uptown Realtors. "There's a lot more to handling a sale than just listing the house."
The buyer's agent sometimes ends up doing most of the work – albeit for a usual 3 percent commission.
" Oftentimes the seller does not understand the complexities of the transaction and relies upon the cooperating broker for assistance and advice," the Texas Real Estate Commission said in its proposal for the license changes.
The vote to restrict some limited-service real estate transactions came because of "concerns raised by various real estate industry organizations," the commission said.
" You are hearing that from Realtors, not consumers," Mr. Garcia and other discount brokers said. "I haven't had any complaints."
Selling knowledge
Most full-service real estate sales companies said they don't see a threat from flat-fee brokers who charge little and do less.
" We are in a relationship business," said Mary Frances Burleson, president of Dallas' Ebby Halliday Realtors.
" If people like you and trust you, and you do the job you are supposed to do, they are going to do business with you.
" What the client is buying from us is the knowledge of the market," she said.
Sellers can always negotiate the cost of the service based on what they want the agent to do, Ms. Burleson said.
" If someone can build a better mousetrap cheaper, my hat's off to them," she said. "But we know what it takes to run our shop and what services we have to offer to keep our customers happy."

More freedom
Mr. Abelson of Texas A&M predicts that ultimately consumers will be freer to choose what level of real estate sales service they pay for.
" There are some consumers that think they are smart and can do it for $500 with no help," he said. "Some will succeed, but some won't, and they will hire a full-service broker.
" What the Realtor brings to the table is expertise – that's what you are paying the 6 percent commission for."
Some discount brokers are trying to do a bit of both.
Dallas-area agent Ron Monger's NXT Home is charging sellers a $975 upfront nonrefundable fee for full-service listings.
The seller pays a standard 3 percent commission to the buying agent if the house trades.
" People used to ask us how we can do it for $975," Mr. Monger said. "My response is, how on earth can you pay 6 percent?
" There is the misconception that just because you charge less money you have to offer less service," he said. "That's not the case with us."