A brief history of the Greenwich Association of Realtor’s fight against competition

The Rear Guard

The real estate industry is all about access to information: the less the consumer knows and the more information is held exclusively by brokers and their agents, the more a consumer is dependent on the brokers. Our GAR has fought a losing battle for decades to keep as much information away from consumers as was possible. Here’s just a sampling of those efforts.

Multiple Listing Service (MLS)

Only in the Manhattan real estate market do brokers still enjoy “exclusive listings”, forcing a buyer to deal with a single, individual broker if she wants to buy in a particular co-op. Greenwich realtors had that same system for years and fought a ferocious battle to keep the Multiple Listing Service out. The MLS, you see, provides all agents with the same information: price, price history, details of each house, etc. so any agent can show and sell any house in the system. Clearly it is in a home seller’s interest to have his house exposed to the entire marketplace of buyers and not just a handful of customers of a particular brokerage firm, but real estate brokers pay only lip service to the concept of placing a customer’s interest first; it is, to coin a phrase, “all about them”. And so the GAR resisted the introduction of a MLS for years and only gave up that fight when every other state in the union union had installed it.

Greenwich Asociation of Realtors Rear Guard

Restricted MLS

Having lost that battle, our GAR, comprised of Greenwich brokerage firms, came up with the idea of creating their own private MLS system rather than join the state-wide MLS, the C(onnecticut) MLS . This was not done from some motive to help Greenwich homeowners but rather to protect the business interest of member firms of the Greenwich Association of Realtors by keeping out – of – town agents from knowing anything about Greenwich properties and preventing them from showing Greenwich houses to their own clients.

For Sale Signs

Dressed up as an altruistic means of preserving the Greenwich landscape, this is really just another ploy to keep knowledge away from consumers. If you didn’t know what was sale, you needed the services of a real estate agent to tell you (then).

Why aren’t addresses given in local real estate advertising?

Certainly not to protect a homeowner’s privacy. Notice that open house ads do provide addresses, because otherwise how would anyone find the house? The fact is that newspaper real estate ads aren’t intended to, and don’t sell a particular house. They’re run to placate and sooth the ego of anxious home sellers but most important, to draw in new customers for the firm. If there’s no address given, anyone interested in a particular house is forced to call the brokerage firm and inquire. Homeowners should know that usually the agents fielding calls about your property are (a) the least experienced, least productive salespersons – good agents are out of the office with their own clients – and (b) usually know absolutely nothing about your house, having never seen it. They’ll read the listing details to a caller but their training and their job is to convert the caller into a customer of the firm, not sell your house.

Public Open Houses

Again, the purpose of these is to gain new customers for the listing firm and any sale of your own house arising from the open house is pure coincidence. Notice those raffles at open houses? Ever wonder what they have to do with selling the house you’re viewing? Absolutely nothing, of course; they’re there to lure you into yielding your name and contact information so that an agent can be assigned to pester you in the future. Rest assured that when that call comes it will have nothing to do with the house you saw.

The “Book”

This is probably the most telling, and revealing side of the business that is Greenwich real estate. When the MLS was introduced, it was in the form of loose-leafed pages, each containing information on a particular house. Each agent was required to assemble her own “book” of those pages and she wasn’t given access to listings that had come to the market before she started, so new agents had almost no access to the broader Greenwich inventory.

This was be design: agents hate competition from their own firm’s agents every bit as much as they hate competition from outsiders. Books eventually added pictures in the mid-1980s, approximately 150 years after the invention of photography and, finally, were assembled into one bound volume issued every week. Agents were forbidden, under pain of expulsion from the GAR, from lending that book to their own clients or anyone not a member of the GAR.

The Coming of the Internet

The Internet has destroyed all this – information wants to be free and the secret knowledge clutched so tightly by Greenwich realtors has escaped. Anyone can now learn an advertised home’s address, anyone can discover its sales history, anyone can see pictures of the property on line. The GAR has fought this development for over a decade, losing ground every day and yet still refusing to change the business practices that served it so well over the years. Addresses still aren’t given in real estate ads, listing sheets given to clients must be carefully sanitized and stripped of sales history, days on market, original sales price, etc., even though all that information is now publicly available on the Internet. Why? Pure denial, but that happy state is crashing down, which is fun to watch.

Later – how the Connecticut real estate brokerage firms hijacked buyer representation and turned it from a benefit for buyers to a trap for the exclusive benefit of Realtors.

Hah! The GAR should have read Glenn Reynolds

Silencing a Hornets Nest. Bad move, and it doesn’t work.

Greenwich real estate values as calculated by Zillow

Here’s a fun exercise, prompted by the GAR’s demand that this blog stop linking to Greenwich Association of Realtor descriptions and direct readers to Zillow instead. Funny enough, looking at these Zillow estimates of value, I owe the company an apology: they seem much closer to the true value than the GAR asking price.

34 Buckfield Lane.  Asking price, $2.8 million. Zillow “Zestimate” : $1.676

548 Stanwich Road Asking price, $7.9 million, Zestimate, $6,596,600 (doesn’t that sound scientific?)

33 Meeting House Road. Asking $8.995, Zestimate $7.695 45 Farwell. Asking $9.150 million, Zestimate $7.770.

What your friendly agent is doing for you

Representative photo of 174 Cognewaugh Road, as permitted and approved by Greenwich Association of Realtors

Earlier today I reported favorably on a listing at 174 Cognewaugh Road, priced at $3.295 and newly listed. I had originally linked to (the client’s version) of that listing but because it contains pictures of the house, the Greenwich Association of Realtors has forbidden any such link.

So here’s its information as supplied by Zillow. Aerial shot of the woods around it, reported (as of this writing) as “Not For Sale” and an estimated value of $2.215, a million less than the homeowner wants (and I think the owner’s price is a good one).

Zillow consistently underestimates Greenwich home values, probably because its algorithms can’t handle the numbers. But sellers beware: buyers actually use Zillow as a reliable source. Your agent and her manager, by trying to strike at me, have done you a grave disservice by driving buyers to the Zillow site. But then, if you thought that your agent was working on your behalf, you probably deserve to be Zillowed.

Homeowners: Ever wonder why you never get a call from a Stamford agent asking to show your house?

Representative image of Greenwich home, as approved by Greenwich Association of Rip-offs

Because they are denied access to your identity, telephone number, listing agent and showing instructions. Furthermore the standard key box used throughout the rest of the state to access houses cannot be used on Greenwich properties. And, while a keypad that would open that box costs $40 bucks,  a keypad for exclusive Greenwich costs $450. Dues for the Connecticut Multiple Listing Service are (something like ) fifty bucks, and over $2,000 here. Not too many agents in other towns are willing to spend that kind of money to show the occasional house in Greenwich, so they stay out, exactly as the GAR intends.

So your house can be shown, and is only shown, by Greenwich agents. That’s fine, so long as you’re content with foregoing all the potential buyers working with agents in, say, New Canaan, Darien, Westport or Stamford. Otherwise, not such a good deal.At least, not for you.

Stupid, stupid stupid

Greenwich realtor, monopolist

Greenwich Association of Realtors ups the ante, bars use of their pictures.

Incompetent, jealous agents and homeowners embarrassed to be called out on overpricing their home strike back. Of course, most houses described on this blog gain from the free publicity -when pressed, most agents will admit to receiving calls from their own clients asking about houses discussed here – but just as agents never thank me for saying nice things about their listings, it’s only the angry homeowners who complain.

We’ll have a work-around soon. In the meantime, this provides a perfect example of the monopolistic organization that the GAR is. By restricting entry into the market they effectively bar out-of-town brokers from competing for your business, thus shielding Greenwich brokers from price competition. By refusing to let members of the Connecticut MLS from accessing the Greenwich MLS (only Darien and New Canaan, surprise, employ this same tactic) they keep your house away from agents in other towns who might, God forbid, show your house to one of their  own clients and thus deprive a Greenwich agent of the opportunity to earn a commission.

I suggest that the probably-illegal restrictive practices of the Greenwich Association of Realtors does far more harm to home owners than exposure on this blog and the anger of frustrated sellers might be better directed to GAR headquarters.

But go ahead and listen to your agent who tells you that the price she suggested is perfect, your house is being exposed to every buyer in the country and that the only reason your house isn’t selling is because of that mean Chris Fountain. Snicker.

Mr. Fountain

What the service deems as confidential is what the service defines as confidential. [What the FUCK does this mean? - Ed] Should you wish to cite another source or use other reports you are welcome to. Our service does not track what is reported in the publication you referenced below as we do not track who purchases a property.

Images are only to be used via an IDX feed under the IDX rules to brokerage web sites. Your blog is not a brokerage web site and therefore images should not be taken from the MLS and placed on your blog. Call if you have any questions or would like any help setting up any custom reports, I am happy to assist.

Theresa Hatton, CAE, RCE

Executive Vice President

Greenwich Association of REALTORS®

Third time’s the charm?

Rebecca Fretty: “A Y needs a man like a fish needs a bicycle”

Greenwich YMCA names yet another CEO. Whoever runs this decrepit old building has hard a hard time finding competent help the past decade. They selected one guy from California who, having bankrupted a Y there, fled to Greenwich and did the same thing for us. After he quit, Junior League executive Rebecca Fretty took over and worked diligently to further the goal of her predecessor to drive away men from what was once known as the “Young Men’s Christian Association” and is now called “The Family Center of Greenwich Y”. As she hoped, members fled in droves. Then she quit.

The new CEO seems to have a more successful record, so maybe he can restore this institution to some semblance of its former self. Maybe.

Not a creature was stirring, not even a house

Just two accepted offers reported today, both in Riverside, one asking $1.675, the other $1.295. Big whoop.

Three price reductions, $13.995 to $12.995, $9.250 to $8.750 and $5.995 to $5.495. It’s gratifying to see some high-end owners move even a little bit towards exiting the denial stage of grief, but I wonder why they’ve waited until the end of the spring market to adjust their prices? On the other hand, houses in this price range aren’t selling anyway, so where’s the harm?

If Bloomberg can celebrate “Doughnut Day” after banning big soda sippy cups, then why not?

Dig those fries!

Mayor of Philadelphia denounces junk food after opening a Shake Shack. Of course, the denunciation came while Mayor Nutter was in D.C. within spitting distance of Michelle while the hamburger joint is in Philly, but isn’t there a term for this, like “cognitive dissonance” or “playing to the crowd”?

The replacement for the Philly Cheese Steak

And back to you, Theresa

GAR Evil Princess

Dear Theresa;

Thank you for your correspondence of even date regarding my alleged violation of GMLS Rule Whatever, Section 12, which prohibits the public dissemination of propriety information. I disagree with your interpretation that the name of a seller is in any way privileged, because sales are reported to the Greenwich MLS only after the sale has been completed and recorded in the public land records of the Town of Greenwich. At the instant of recording, all information concerning sale price and seller’s identity becomes public information and is available for publication. I refer you to the sales reports in our local publication, Greenwich Time, for an example.

Past asking price history is also public information because it is recorded and tracked by the tax assessor, as is the original purchase price.

While I will concede that the commission offered at time of listing a property for sale could be considered “proprietary”, it is certainly public knowledge that the standard, albeit negotiable commission charged in Greenwich is 5%. If a broker accepts less than that it remains undisclosed, as it should: I’d be embarrassed to admit it too.

Nonetheless, although I find that the full agent listing offers more information in that 20, rather than 8 pictures are included, I shall henceforth refrain from publishing same. Perhaps I’ll add sketches instead.

Chris Fountain

Sale prices reported

 

Photo approved by Greenwich Association of Realtors

71 Perkins Road, $1.6 million after 855 Days on Market and starting at $2.595. Seemed like a land sale to me and my client, but certainly a livable house.

32 Coach Lamp, Cos Cob, asked $1.350 and sold after 28 days on the market for $1.3 million. That seems about right to me and I recommended this house when it came on.

Ah, the power of monopoly

As I understand the rule and this latest warning from the friendly folks at the Greenwich Association of Realtors, I can’t identify homeowners by name nor the commission they paid [hint: in Greenwich it's 5%] nor “Agent to Agent remarks” [example, "Association dues and special taxes - call LB" - highly secret, deeply confidential].

Fair enough – I’ll use the 8 picture, limited view of the “client version” but, until the next warning, I’ll continue to reveal the original asking price. It’s my guess that it’s this latter, often highly embarrassing information homeowners get so hetted up about but I believe it’s information buyers and other sellers want and find useful and I believe it’s fair game.

Dear Mr. Fountain:

You shared confidential and proprietary GMLS data on your public blog site (christopherfountain.com posted JUNE 6, 2012 · 3:57 PM). I want to remind you that the GMLS data is for the use of the GMLS subscribers who are actively engaged in listing and selling properties. The link with reports shared below violates the MLS rules as you shared information related to the owners, showing information, offers of compensation and agent to agent remarks – all of which are confidential.

Any information shared with clients should be in the Client Report format – under NO circumstances should the full agent view be given to clients and/or released to anyone in the public.

Should confidential information be released again, appropriate procedures and sanctions will be taken as per the Rules and Regulations.

Please do not hesitate to contact me should you have any questions.

GMLS Rules – Section 12: Publication and Information

D.        None of the foregoing shall be construed to prevent any individual legitimately in possession of current listing information, “sold” information, “comparables,” or statistical information from utilizing such information to support an estimate of value on a particular property for a particular client.  However, only such information that the MLS has deemed to be nonconfidential and necessary to support the estimate of value may be reproduced and attached to the report as supporting documentation.  Any other use of such information is unauthorized and prohibited by these Regulations.

Three good houses I saw today

Which is why they hold broker open houses.

(Photo approved by Greenwich Association of Realtors)

I liked 174 Cognewaugh Road, LINK DELETED PER DEMAND OF GREENWICH BROKERS ASSOCIATION  $3.295 million. Built just three years ago, it’s of extremely high quality with a great architectural design, to my eye. 1.75 acres which presumably leaves room for a pool, should you want one, 5 bedrooms, 6,150 square feet. detached garage, which some people don’t like, but it’s got three bays, which I do like.

7 Ricky Beth Lane, in Hillcrest Park, $2.495 million. No link right now because I’ve just been chastised for linking full listings, which reveal “private information”, so I’ll have to sign off of this browser and sign on to Microsoft in order to access the MLS. For this I pay dues.

Anyway, a great old barn built in 1918 and completely modernized. On 1.1 acres, pretty much one-floor living, beautiful gardens and a great, quirky-but-entirely useful layout. I’ll be back with a link when I have time.

There was a third one but since I sent its listing to clients, I’ve decided to hold off publicizing it until I find out if they’re interested. I do try to make a living from this ridiculous business.

Continuing Ed

Off on the Thursday broker open house tour. Nothing particularly strikes a chord but if you don’t know the inventory you can’t give an accurate opinion on relative value.

Plus there’s always room for surprise.

Maybe we can persuade Malloy to tour Sweden this summer

Dancing in the street

Hell, he can use taxpayer funds if he wants to – it would be the best use of our money seen in decades, although, given his admission of being a slow learner, Malloy might have to stay over there a few years to absorb the lesson. That too would be fine with me.

Booming Sweden and its adoption of free market principles.

Americans still think of Sweden as a tightly regulated social-welfare state, but in the last two decades the country has been reformed. Public spending has fallen by no less than one-fifth of gross domestic product, taxes have dropped and markets have opened up.

The situation is similar in the other Scandinavian countries, the Baltic nations and Poland. But no turnabout has been as dramatic as Sweden’s.

From 1970 until 1989, taxes rose exorbitantly, killing private initiative, while entitlements became excessive. Laws were often altered and became unpredictable. As a consequence, Sweden endured two decades of low growth. In 1991-93, the country suffered a severe crash in real estate and banking that reduced GDP by 6 percent. Public spending had surged to 71.7 percent of GDP in 1993, and the budget deficit reached 11 percent of GDP.

Turning Point

The combination of the crisis and the non-socialist government under Carl Bildt from 1991 to 1994 broke the trend and turned the country around. In 1994, the Social Democrats returned to power and stayed until 2006. Instead of revoking the changes, they completed the fiscal tightening. In 2006, a non- socialist government returned, and Finance Minister Anders Borg, with his trademark ponytail and earring, has led further reforms. Sweden successfully weathered the global financial crisis that started in 2008, and the Financial Times named Borg Europe’s best finance minister last year.

Before 2009, Sweden had a budget surplus, and it has one again. For the past two years, economic growth has been 4 percent on average, and the current-account surplus was 6.7 percent in 2011. The only concerns are the depressed demand for exports caused by the current euro crisis and an unemployment rate that is about 7.5 percent.

Sweden’s traditional scourge is taxes, which used to be the highest in the world. The current government has cut them every year and abolished wealth taxes. Inheritance and gift taxes are also gone. Until 1990, the maximum marginal income tax rate was 90 percent. Today, it is 56.5 percent. That is still one of the world’s highest, after Belgium’s 59.4 and there is strong public support for a cut to 50 percent.

The 26 percent tax on corporate profits may seem reasonable from an American perspective, but Swedish business leaders want to reduce it to 20 percent. Tax competition is fierce in some parts of Europe. Most East European countries, for example, have slashed corporate taxes to 15-19 percent.

A little humor to brighten the morning

The great unwashed have moved to the state of denial.

Just under three minutes of video here courtesy of the Maciver Institute, but enough material to keep you rolling on the floor laughing for hours. First there some schmuck declaring that they didn’t lose, the day after an epic defeat heard around the nation. That’s followed by a couple of weirdos, one a grown woman with pigtails, upset that CNN called the race when everyone else did when it was obvious Governor Walker was heading toward landslide victory. The pigtail weirdo takes it quite personally.

Sorry, honey, as you folks like to say, this is how democracy works.

Quelle surprise

Love and affection for mama pig

Connecticut teachers union rallies in support of Donovan

Before becoming speaker, Donovan worked for the Congress of Connecticut Community Colleges, a labor union that represents community college workers.

“He’s been tested, he’s strong and he’s ethical,” said state federation of teachers President Sharon Palmer. “We know the man and we know what he will do for us in Washington.”

You bet.

As an aside, in the wake of the Walker triumph in Wisconsin, some reporter thought to contrast Walker with the governor of Michigan who opposed and stopped a move to disband public employee unions as “too divisive”. Nothing surprising about that – Michigan is all union, all the time, but I was “amused” to read that the governor did manage to strip the right of nursing aides and home health care attendants to unionize.

Our own governor Malloy and his Democrats granted that same right just this past legislative session, with Dannel whooping in triumph as he signed the bill into law. Sad state of affairs, so to speak, when Connecticut can’t learn a lesson from the unionized state of Michigan.