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Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings.
On Halloween 2023, a verdict was rendered in the Sitzer | Burnett antitrust lawsuit. Since then, we’ve experienced copycat lawsuits, controversial settlements, the implementation of practice and document changes (with lots of back-and-forth opinions), plus ongoing controversies at NAR, the DOJ and MLSs.
That’s why we wanted to know: What’s your biggest takeaway now that we’re a year on from the Sitzer | Burnett verdict? Was it all much ado about nothing? A huge distraction? Or has it set us up for even more uncertainty and major practice changes in both the short term and the long term?
Here are your responses:
- Of NAR’s 1,500,000 members, I believe the vast majority routinely pay their annual NAR dues and follow its dictates. But there are those, like me, who do not see the value of being an NAR Member except to gain access to my local MLS, which demands I join NAR. Quite a cozy setup, and I am happy there exists several Class Action lawsuits contesting this NAR/MLS relationships.
A separate NAR issue is NAR routinely sending me email solicitations touting yet another “NAR Benefit,” e.g., car and life insurance, kitchen appliances, travel agencies, and currently, NAR is pushing an IRA custodian for Realtors to build a retirement plan. I have no axe to grind with the fortunate IRA custodian who gets to reach NAR’s 1,500,000 Realtors, but I would like to know if NAR receives any commissions, fees, kickbacks etc. I challenge NAR that any form of an IRA, Traditional, ROTH, Self-Directed etc., is the best retirement plan for Realtors when the Individual 401(k) is available and has many additional and superior features.
I would be happy to list them but doubt my post will be published. Let me list just one superior benefit of the Individual 401(k), you don’t need a custodian, ergo is it is any wonder why IRA custodians do NOT suggest a superior retirement plan? Realtors must wake up and realize that with 45,000,000 IRAs plus an additional 30,000,000 company 401(k)s in America collectively investing $20 trillion where Wall Street controls 95 percent of the trillions and investment real estate an anemic 4 percent. Wow!
One is forced to ask, what is NAR’s plan for its 1,500,000 Realtors to compete for the $20 trillion? None. What are brokerages and managing brokers doing to educate Realtors on how to compete with Wall Street? Nothing. In fact, NAR has chosen to feature an IRA custodian over a retirement plan that allows Realtors to invest in what they know best and sell for a living — real estate.
- The biggest mess that I have ever seen. I have seen many changes with 33 years in the industry. In many cases, that has not been good for the seller or the buyer … and many times, not good for either at the same time.
For example, a buyer from out of town, being transferred, calls the listing agent to see his listing. The listing agent is now living two hours away and can’t meet this buyer (today or tomorrow) but will see if someone can meet the buyer in 48 hours. The buyer does not want to sign with a Realtor yet, the buyer’s wife, mother, sister, and sister-in-law are all agents elsewhere, and the buyer has not gotten an agent (in this town) yet.
The buyer does not want to sign anything to see the house with the agent … that is why they called the listing agent. So guess what? The buyer did not get to see the house. Did that help the seller … NO. Did that help the buyer … NO. The buyer left town but is being transferred to this new town and has now gotten an agent. BUT that could have been the house.
- It is ludicrous to believe that the organization that so badly bungled this case (NAR) is capable of leading us out of this mess.
- The RE industry is now under court order and has paid a heavy price to do what Exclusive Buyer Brokers have been doing ethically for decades. “Crap-Trads” paid legislatures to believe the sham of “designated agency” and the ongoing seller-centric business model, which abrogated the Common Law of Agency. All are foundational reasons.
- NAR and the big brokerages totally dropped the ball and underestimated the attorneys for the plaintiffs. The system of cooperation and commission payments was always clearly understood and always benefited both parties in every transaction. Sellers sign a contract that spells out what their cost will be and who the listing agent would be sharing the commission with. And it did and still does give everyone the largest, most open market, the most eyeballs on the listing than any other system could or can going forward.
But the fact that industry leaders and apparently inept defense attorneys could not make that clear to a jury now leaves us with a burdensome system, and it will hurt sellers and buyers by limiting the market opportunity for both sides. The decision needs to be corrected. In the end, one way or another, the buyer still pays the commission, and the seller will not get as much exposure for their listing. It’s a shame.
- Much about nothing. Good way to screw hardworking buyers who do not have the wherewithal to pay a buyer’s agent’s compensation.
- Licensed real estate pros have been sold out by their trade union, disguised as an association.
- A lot of smoke with no mirrors
- The system wasn’t broken and did not need fixing. We have always negotiated commission with sellers. I, and many of my associates, have many letters of praise for our help from our clients. I have many repeat clients because they remember how helpful it was to work with me.
- It’s a nothing burger with a lot of leaving consumers confused about agents. The lawyers made off like a fight rat. It was an alright attack on our industry that did nothing wrong but help the consumer. Some things needed to be tightened up, which I think the NAR did a great job, but the suit was an injustice to small business owners — namely the Realtor — as if we had antitrust motives. Nothing is further than the truth. DOJ should come with us on a transaction to see what we really have to do and all the paperwork to comply and keep the consumer safe.
- The NAR sold us out and did not work to protect its members. They are supposed to be our advocates, but they just let this guy lead them to slaughter. The ramifications are upending our industry and causing complications for every practitioner out here as well as making every transaction more complicated for every party. The idea that we should not be properly compensated for our work is insane. I have been selling real estate for over 40 years and have been a member of the NAR for that entire time, and I feel that they have sold us out very quickly.
Editor’s note: These responses were given anonymously and, therefore, are not attributed to anyone specifically. Responses were also edited for grammar and clarity. Inman doesn’t endorse any specific method and regulations may vary from state to state.
What did we miss? Please share your thoughts in the comments section below.