BUYER'S AGENT Supports Entry of Banking Institutions into the Real Estate Brokerage Industry (1/01)

Tom Hathaway, President of THE BUYER'S AGENT, INC. sent a letter to the Federal Reserve supporting the proposed entry of banking institutions into the real estate brokerage business. In his letter he states, "We have concluded that allowing this competition would be healthy for the consumer, the banking industry and for the real estate industry. Competition benefits consumers by producing lower prices and greater availability of products and services."

The letter also addresses problems that have plagued the real estate industry for many years including the large number of part-timers in the industry and the real estate industry's major trade association being ruled by a small group of large competitors. Hathaway opines, "This control factor has left the trade association in a position where it makes decisions benefiting those in power, not its membership as a whole."

In accordance with THE BUYER'S AGENT mission to provide the best service to home buyers, while helping them save as much money as possible, the Franchisor told the Federal Reserve that it finds it difficult to see how the consumer will be harmed if the banking industry is allowed to enter the real estate brokerage business, as long as the real estate industry does not require an agency relationship with the consumer.

Says Hathaway, "Since competition in a free market benefits American consumers through lower prices, better quality and greater choice, we believe the entry of banking institutions into the real estate business will benefit consumers."

THE BUYER'S AGENT, INC., founded in 1988, is a franchisor of real estate brokerages dedicated to working in the best interests of the home buyer.