For once, the American Homeowners Grassroots Alliance and Realtors are on the same side of an issue. The Illinois Association of Realtors (IAR) is opposing an anti-rebate bill alongside the AHGA, the Consumer Federation of America and the Department of Justice.

"Our hope is that this example may turn out to be a turning point in the relationship between Realtor organizations and consumer groups and Regulatory agencies," Bruce Hahn, president of the AHGA told Realty Times. "The Justice Department also worked against this bill, and I suspect they may feel the same way."

That's nice, but it won't be enough to get the DOJ off the industry's back. When the National Association of Realtors modified its online listings policy, the DOJ invoked its right to file an anti-trust lawsuit, and even went so far as to inform the Wall Street Journal before telling the NAR that the suit was being filed. In fact, consumer groups like AHGA and the CFA must have been on reporter James Hagerty's speed dial, because he was ready with quotes for an article just in time to embarrass the NAR at its annual governance meetings in D.C.

The DOJ wants the MLS to be a public utility, and for all brokers and agents to be on an even playing field, and for all players to share the same equipment, even if some players are hell-bent on destroying the team. In fact the DOJ is so biased in favor of the discounters, rebaters and MLS-only service providers, that it put up a website extolling their virtues. (See usdoj.gov.)

So this round of arguments about rebates is only one of many.

What rebates mean to people like Hahn is that consumers can get money back on the transaction and that it should be legal to do so. The flip side is something nobody wants to talk about -- and that's the seller might not be thrilled to pay for the incentive. What it really means is that practitioners who rebate must sell their services at a higher rate to the seller in order to have cash to rebate to the buyer, and vice versa.

In other words, somebody's overpaying, while everyone else looks the other way. What's consumer-friendly about that?

That said, the chairman of the Illinois General Assembly Judiciary Committee, Rep. John Fritchey, told Hahn that he would block the antirebate bill at today's hearing.

But don't expect the DOJ to thank the IAR.

"If the feds can point to a state like Illinois and say, "see, the states can't be trusted to protect consumers," then that generates momentum for antitrust officials to come in and add even more layers of federal regulation under the pretext of combating harmful state regulation," explains Skip Oliva, president of The Voluntary Trade Council. "Either way, Realtors end up paying the price."

Published: February 21, 2008

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.