Are Real Estate Agents Really Like the Klu Klux Klan?

In the much touted book, Freakanomics, by Stephen Dubner and Steven Levitt, the authors make the case that there are similarities between the way the KKK operates and the way we Real Estate Agents operate. I don't know about you but I take umbrage at this.

All remarks about nitwit media people and out of touch wonky econ professors aside, I'd like to discuss the authors remarks about Realtors.

First of all, I agree with the authors' opinions regarding the KKK. I also, agree with the historical perspective of the KKK presented in the book. Suffice it to say that the KKK is a loathsome black mark on our culture and our history. In my opinion, the KKK is basically a racially charged, small minded, fearful group of men and women caught up in a ponzi scheme perpetuated by and for the benefit of its small group of leaders. I also agree with the authors view that the KKK's secretiveness and control of information about themselves is what contributed largely to its growth, in decades past. However, the authors go on then to paint Real Estate Agents with this same dark brush. Their opinion is that Realtors are the same, in that Realtors also control information, and also make that information seem secretive.

What a bunch of hooey.

It seems to me that the authors have a built in bias towards Realtors. This bias, which is typical of the media today, has crept into their story. They manipulate their "data", which in this case is purely anecdotal, to fit their biased view and report it as conclusive. The facts tell a different story, if you care to look.

Realtors do have access to information that allows them to "know" what is for sale in the housing market. This information is collected by Realtors and deposited in most, but not all cases, into their local MLS. We Realtors have been doing this for decades, and it has worked well - both for Realtors, making our jobs easier, and for the public. It is important to remember that this information is given to Realtors by the public we serve. Furthermore, it is important to remember that the maintenance of this information system is NOT FREE. Realtors have to pay for it!

Because Realtors have built and control access to these MLS systems does not mean that they have the sole method of "knowing" the market. Anyone can get in their car and drive around an area to find a home for sale if they choose to. It's just easier to use the system built by Realtors to serve the public, namely the local MLS. Realtors don't control the flow of information now, and they never have. We do control the flow of information from our MLS systems, but the public is free to get the same information if they choose. They just prefer to hire someone to do that for them and we prefer to do that job for them the easiest and most efficient way possible. Which is why we created the MLS system.

We also don't mystify the information regarding our industry, as the KKK does about itself. Go into any bookstore and you can find any number of books on the "Business" of buying and selling homes. Entry into our business is not controlled by Realtors. It is controlled by State, County, or City governments.

It is obvious to me the authors saw an opportunity to sell books by making Realtors an easy target. Their criteria for their negative opinions of us - that we control information, that we're secretive, and that we have evil intent, could be easily applied to almost any line of profession - say Journalism for instance.