Frank thank you for your post. I agree with you for the most part. The one thing that I see is the DOJ is really pushing to have sellers not pay buyers commissions at all. DOJ is not happy with MLS changes to their $1 to $0 commissions guidance. I am a branch manager in the Mortgage world and everytime the government has put their stamp on things it has changed how we do business. 10yrs ago the HUD-1 was one page. Now we have a CD that is up to 5 or 6 pages. Just one example. it will be interesting going forward on copy cat law suits and how DOJ forces the hand of contracts and pressure on brokerages with sellers not paying any buyers commissions.
Bill, I'm really glad you stopped by. The HUD is a great example. Changes will be made over time, and I'm sure you've seen many procedural changes in your career. I suppose that my main point is, we will adapt, rules might change, but we will continue to get the job done. But yes, I definitely agree with you that I see some changes coming down the road from these lawsuits. I'm just not going to worry.
Hi ! I just recently got my license and seeing all this play out and thinking, how can our system NOT change because of this. I realize they will appeal and all, but if that doesn’t work then what? We have a guilty verdict rendered of anti trust violations & conspiring to inflate commissions, and a judgement of almost 2 billion dollars that is due. How can we continue doing the same thing knowing the past has been judged and found guilty in a court of law ? Wouldn’t that make us as guilty and more for continuing down the same road ? Just genuinely trying to understand this all❤ your 3 years in, I’m 3 months in 😊 I guess we wait and see if the NAR is going to advise us how to go forward in light of this. Thanks, I always enjoy your content. God bless.
Very valid question, I won't deny that. Here's why I think nothing is really going to change: I think that the verdict is actually incorrect. My assumption is that there was a SUPER gung ho lawyer on the side of the plaintiff. Then on the defendants side, there was probably a lack of cohesion due to there being multiple companies, and I'm thinking they didn't try very hard preparing a defense because they were innocent. The crux of the matter is that I truly believe the brokerages did not engage in anti-trust behavior. Even before this lawsuit, sellers have the right to offer any amount of money they want to listing agents and buyer's agents. That's why there's so many "flat fee brokerages" that will list for $500, and there are plenty of people who sell FSBO just fine. Consumers have options, and I believe that the free market is what currently sets the rate for buyer's agent commissions, not collusion between brokerages. But with you just starting out, this is a great example of why you should focus on being a "listing based" agent from the beginning. DO NOT listen to anyone at your brokerage that says you need to work buyers first. My first 6 real estate transactions were listings. You'll be okay, just keep going, adapt with whatever new law or rule comes out. Every year, two things are true: 1. Something happens and everyone says "this is the end of real estate agents forever!" 2. It never actually plays out how they say it will.
Thanks ✅ I agree! I don’t know how it even made it to this point. … ???? ….But everything happens for a reason right. Maybe there are some old ways that need to be revised in the industry, just like any industry. We’ll be better for it 🏆🙏❤
Frank thank you for your post. I agree with you for the most part. The one thing that I see is the DOJ is really pushing to have sellers not pay buyers commissions at all. DOJ is not happy with MLS changes to their $1 to $0 commissions guidance. I am a branch manager in the Mortgage world and everytime the government has put their stamp on things it has changed how we do business. 10yrs ago the HUD-1 was one page. Now we have a CD that is up to 5 or 6 pages. Just one example. it will be interesting going forward on copy cat law suits and how DOJ forces the hand of contracts and pressure on brokerages with sellers not paying any buyers commissions.
Bill, I'm really glad you stopped by. The HUD is a great example. Changes will be made over time, and I'm sure you've seen many procedural changes in your career. I suppose that my main point is, we will adapt, rules might change, but we will continue to get the job done.
But yes, I definitely agree with you that I see some changes coming down the road from these lawsuits. I'm just not going to worry.
Hi ! I just recently got my license and seeing all this play out and thinking, how can our system NOT change because of this. I realize they will appeal and all, but if that doesn’t work then what? We have a guilty verdict rendered of anti trust violations & conspiring to inflate commissions, and a judgement of almost 2 billion dollars that is due. How can we continue doing the same thing knowing the past has been judged and found guilty in a court of law ? Wouldn’t that make us as guilty and more for continuing down the same road ? Just genuinely trying to understand this all❤ your 3 years in, I’m 3 months in 😊
I guess we wait and see if the NAR is going to advise us how to go forward in light of this. Thanks, I always enjoy your content. God bless.
Very valid question, I won't deny that. Here's why I think nothing is really going to change:
I think that the verdict is actually incorrect. My assumption is that there was a SUPER gung ho lawyer on the side of the plaintiff. Then on the defendants side, there was probably a lack of cohesion due to there being multiple companies, and I'm thinking they didn't try very hard preparing a defense because they were innocent.
The crux of the matter is that I truly believe the brokerages did not engage in anti-trust behavior. Even before this lawsuit, sellers have the right to offer any amount of money they want to listing agents and buyer's agents. That's why there's so many "flat fee brokerages" that will list for $500, and there are plenty of people who sell FSBO just fine. Consumers have options, and I believe that the free market is what currently sets the rate for buyer's agent commissions, not collusion between brokerages.
But with you just starting out, this is a great example of why you should focus on being a "listing based" agent from the beginning. DO NOT listen to anyone at your brokerage that says you need to work buyers first. My first 6 real estate transactions were listings. You'll be okay, just keep going, adapt with whatever new law or rule comes out.
Every year, two things are true:
1. Something happens and everyone says "this is the end of real estate agents forever!"
2. It never actually plays out how they say it will.
Thanks ✅ I agree! I don’t know how it even made it to this point. … ???? ….But everything happens for a reason right. Maybe there are some old ways that need to be revised in the industry, just like any industry. We’ll be better for it 🏆🙏❤