Setback or wake up call
There is a lot going on in the Real Estate industry right now.
This week's big news in real estate was the settlement of the class action lawsuits directed against the National Association of Realtors (NAR) and several of the largest brokerages and brands in the industry.
Here are few of my thoughts…
DOJ
Here in our home state, there's a legal matter known as the Nosalek case that was filed in 2020. This lawsuit is part of a broader collection of ongoing legal actions that aim to challenge the current structure of buyer-broker commissions. MLS PIN, which covers a significant portion of Massachusetts, along with multiple brokerage firms, is facing legal action from home sellers who are opposed to regulations that mandate them to cover buyer agent commissions.
how many other industries has the Government gotten involved in their pay structure
NAR
The trade organization that protects 1.5 million micro business owners in the real estate industry, Realtors, failed us by settling the commission lawsuit for $418 million.
Failed us by is barring listing agents from making offers of compensation to buyer’s agents through the MLS as of mid July, 2024
Furthermore, by making a requirement that buyer’s agents affiliated with the MLS will be required to use a buyer’s agreement that spells out the services they will provide the buyers and their expected commission rate.
wait, it is an election year right? who are they advocating for?
NEWS
CNN — The 6% commission, a standard in home purchase transactions, is no more.
NEW YORK TIMES — American homeowners could see a significant drop in the cost of selling their homes after a real estate trade group agreed to a landmark deal that will eliminate a bedrock of the industry, the standard 6 percent sales commission.
False Headlines, our professional fees have always been negotiable, never standard.
NEW YORK TIMES — Home prices will drop
False Headlines, that is not going to happen, just because a Seller may potential save some money doesn’t mean they are going to ask for less.
Headlines are just that, don’t get your information just from what you might read, talk to your trusted Realtor if you have questions.
CONSUMERS
Sellers might think they will save money by not having to pay potential the buyer’s agent or pay less, that is not how it seems and there are a lot of variables to this;
the market will not always be a sellers market, one day you will be offering incentives and pay anything for an agent to show your home and help you sell it.
you will potentially also be a buyer when you sell, which now you will have to pay for
there will be buyers that not longer qualify to buy your home because of federal owned mortgage program not allowing it ( VA) which is a disgrace and disservice to all of our men and women that serve this country.
there will be less buyers affording to pay the buyer agent fees and choosing to perhaps purchase without an agent opening you up for more liability.
Buyers, I feel for you. If it wasn’t already a hard market to find and secure a home, you know how to deal with an additional hurdle.
interview more than one agent and ask to review their services and fees to you in advance
don’t compromise on having representation, a good Realtor will explain the many ways you can navigate the buyer’s agent fees without jeopardizing your ability to purchase a home.
knowing your financing options will now go beyond what rate is available, this will be huge.
you will one day be in the driver seat again, remember that.
Very few will benefit from this settlement.
REALTORS
We must debunk the myth that Realtors are overpaid for minimal effort. It's time to showcase the immense value we bring to every transaction, often without immediate compensation. Behind the scenes, we invest countless hours, sweat, and dedication to safeguard our clients' interests and guide them towards their dreams of homeownership.
I am fervently advocating for our industry because I witness firsthand the relentless dedication of my fellow agents. They go above and beyond, tirelessly working to ensure their clients' needs are met, even when faced with skepticism about their worth.
Consider this: Did you know that approximately 80% of the real estate industry is comprised of hardworking women, many of whom are also mothers? These women juggle multiple responsibilities, including an unpaid role where they invest substantial time and effort into each client's journey.
Yet, despite the countless hours of work, the financial compensation often hinges on the successful closure of a sale—a process fraught with uncertainties and challenges. Realtors not only cover their own expenses but also often dip into their pockets to provide additional support to clients, whether it's staging services, marketing materials, or navigating bureaucratic hurdles. We are talking months and sometimes even years of showing up for another human being unconditionally unpaid.
Moreover, they offer emotional support, acting as cheerleaders and confidants during the highs and lows of the home buying or selling process. This level of care and dedication is unparalleled, yet it often goes unnoticed in discussions about compensation.
What other industry operates with such selflessness and dedication? None.
It's time to recognize and appreciate the heart and soul that Realtors pour into their work. They are not just facilitators of transactions; they are architects of dreams, helping individuals and families secure their place in the American dream of homeownership.
Today I extent a hug to all Realtors, I know you feel anxious, unappreciated and concerned, don’t. Changes create opportunities. We are going to fight, we are going to show our value, we are going to prevail, we are invaluable contributions to our communities, remember that.
I see you, I appreciate you, I honor you, I fight for you.
With Love,
S~ ❤️