The Washington herald., 1907-05-19

Would the formation Of an association
or other organized body Of the real estate
brokers Of the city be of benefit in buy
ing, selling. and renting property in
Washington?
Members of several Of the most active
real estate firms in the city were asked
for an expression Of opinion on this
question last week, bringing out numer-
Gus valuable suggestions regarding the
methods OF transacting business IN this
particular line. The dealers talked with
generally agreed that the formation of
some kind Of an exchange or association
Of real estate men. which would adopt
reasonable regulations relative TO the list
ing Of property for sale or rent and the
elimination of certain practices now in
vogue was desirable
The expression was general that much
effort was wasted. much unnecessary
money spent iu making sales, and too
little profit 20 the broker in the conditions
as they now exist in Washington Men
said frankly that they would welcome any
movement promising relief from certain
abuses which chad crept into the real
estate business as a result Of the C0mpe-
titiOn among rival agents.
Once Had an Exchange.
Several Of the brokers referred to the
real estate exchange once organized in
Washington. and for several years in
operation here. They all agreed that II
was a failure. for the reason that certain
firms would not join it, and that these
firms were numerous enough and strong
enough TO nullify the rules adopted for
the regulation Of the business.
Inquiry developed the fact that the old
real estate exchange died I'm the conflict
between old-fashi1ned and new-fashiOned
methods of handling property. At the
time the exchange was i'm existence the
long established firms Of the city were
in the majority Their method. in general
was for the owner TO come 20 their Offices.
list his property for sale or Tor rent.
and enter into AN agreement with the
agent to sell or rent on certain COM
mission. To these same offices came the
buyers and the renters and took the
property there listed. The active brokers
Of that day had no staff Of statesmen and
no long line of vehicles at the door wait
ing to take customers out to view prop
erty and make deals on the ground. The
business was transacted i'm an easy, or
DERBY. dignifed sort of way. which gave
larger profits to the broker than now.
Young Wen Enter Field.
J-st about that time younger men en-
tered the field They handled real estate
in "a far different manner. They were men
CT active instincts They hustled both foI
buyers and sellers of property. In "a
variety of ways they brought the two
together. The salesman Of magnetic pres
ouea. fine clothes, and convincing argu-
mlut came in. He was out 10 make sales
or TO get tenants for empty houses. and
he found them. in few years the busi-
ness was put upon an entirely new basis.
Advertising in the newspapers was a
large part of the new method. Com
missions were sometimes cut 20 make
a sale possible. Sometimes rival brokers
beat down the price Of the property 90
the limit set by the buyer, or they forced
the buyer mp 20 the price set by the
owner. ass the case might be.
With this class Of brokers the old-time
regulations and irou-clad rules of the cN-
change would not hold They We're vio-
lated and the exchange passed away IN
the conflict between old and new methods.
Now. however. tho time seems TO have
arrived. the new style of business being
far in the ascendant when the real estate
men are beginning 10 feel that they ought
f9r mutual protection and advantage.
Many of them believe that with the or
Eauization Of the Chamber Of Commerce
some affiliated body or committee Of that
association should be formed fo further
the special interests Of the real estate
business.
1Ir. Fairfax FnvOrs II.
Charles Fairfaz. Of stone 81 Fairfax.
stated that he was in favor Of some
organization Of the brokers. or at least
some agreement among them, which
should eliminate the trouble experienced
many times i'm making sales. because of
the competition Of brokers over the same
piece of property which unsettled the
minds of both seller ami buyer Mr..
Fairfax explained that deals were often
called off because the owner'of the prop
erty. after once offering it at a specified
figure. would raise il under the impression
that several persons wanted it and some
one would pay mora for IT, This impress
sion, he said. came 10 the owner be-
cause several brokers would approach
him with propositions, Offering options or
agreeing 90 find buyers At higher figure
than had been proposed I'm the pending
deal
1ir. Fairfax was of the opinion that a
way might be- found. through an associa-
tiou. to ohviate this and leave an iudi-
V.iuaI broker time 90 Consummate his deal
without Interference from other sources.
Mr. Fairfax did not know just how it
should De done in justice % an concerned.
but Was Of the opinion that the problem
could be worked out i'm an association OF
brokers who would he willing TO abide
by reasonable rules Of procedure with
reference 20 listing property and giving
ii broker exclusive control Of the property
FOR a stated period.
Likes the Proposition.
Charles WaIlran. of Moore & Hill.
agreed with the general proposition that
an organization Of the real estate men
would be Of benefit 20 the business. He
spoke Of the difficulties often attending
a sale Joy what he den0minated the cut
throat methods made use of by rival
firms. He said be had been confronted
many times by an offer 20 a prospective
buyer Of the piece of property he was
trying 20 sell, at lower figure than he
was authorized to offer It. To make a sale
at an under those conditions it was neces-
sary 90 get at the owner and rearrange
the whole basis Of the deal
Mt Wallran thought that If some way
could be devised 90 stop this underhid-
ding on the part of other brokers with
whom the property might be listed ii
would greatly simplify matters and leave
a freer field Tor the operations OF the
salesman
Case in Point Described.
At this stage in the investigation. a
concrete case was brought To the atten-