NAR Anti-Trust Suit

[Jack Seiden]

Curious to hear people’s views on the case? I could see the entire industry being changed or some different legal language to some legal forms and things more or less continuing as is. As an aside I do think the combo of less home sales, more agents, regulatory challenges, higher home prices and the internet make it pretty likely that
commissions fall. As far as the legal case itself I’ve literally seen an agent call an agents broker and complain that the buyers commission was too low. I’m left with this scene from arrested development in my head.

Michael: Is this what you’re worried about? ’Cause, you know, I got news. He’s, uh... he’s guilty.

George Michael: He is?

Michael: Oh, yeah. Incredibly guilty.

[Patricia Steiner]

As both a Broker and Investor, it's a move that is far overdue. The entire fee structure involved in real estate transactions is vulgar with lenders, title, realtors and more having their hands deep into the pockets of both buyers and sellers. NAR's claims that to accept this ruling will put buyers in harm's way as they will more than likely go unrepresented in transactions is far from the greatest threat to the public. My experience has been that many buyers and sellers are currently being represented by realtors who are social media experts but know little to nothing about real estate. And, it's NAR as well as the local realtor associations who place the emphasis on self-promotion and lead generation - rather than actually acquiring the knowledge of dirt. The last transaction I did for a client who was selling a highly profitable MF property was constantly in chaos simply because the buyer's realtor (as well the buyer - who was a new investor) didn't have a clue; the realtor had no concept of a commercial sale, couldn't even prepare the contract, yet was all about her commission paid by my Seller. Please know that there are great realtors who do tremendous work for clients and truly know the business. Investors need to get smarter on selecting their representation; if your realtor is 'the rock star,' you've got the wrong person...the rock star should be you.

As to why there have been so few replies, please know that news outlets have been proactively soliciting response from realtors. And, this isn't breaking news...it's been expected.  There was an earlier settlement by another realty mega-firm.  

Again, there are great realtors who EARN their commission regardless of who pays it. It is not uncommon in commercial transactions - that NAR does not control - for each side to pay its own realtor and those transactions are more seamless and cooperative. And, one look into the BP Realtor Forum will show that realtors have long been frustrated by the 'challenged' in the industry and its practices.

Change is good...favor please: this is my opinion only; not looking to engage in a debate over it.  Please feel free to exclude me from contributing posts.  Best.