NAR, Lawsuits, and Doing The Right Thing
During the COVID lockdown, I wrote a blog titled, “Doing The Right Thing Is Always The Right Thing,” today’s unveiling of the recent lawsuit settlements brought that to mind.
I’m writing this from Tahoe, where I was part of a panel with the Realty Alliance on scaling your business. All the companies attending are the best of the best, yet some have 100 years or more of operations. You create a 100-year enterprise by always doing the right thing.
Some 20 years ago, I worked with buyers, and a co-op commission came up that was $1.00. Because I had adequately educated my buyer clients, I could show homes of any commission level—the right thing.
Today’s news released by all the major real estate news outlets summarizes some of the settlement points; only one is breaking news, in my view. The summary:
Significant
- Redfin no longer requires agents to be NAR members.
- Anywhere, company-owned operations no longer require NAR membership and encourage franchisees to do the same.
- REMAX company-owned regions no longer require NAR membership and encourage franchisees to do the same.
- Note: in most areas there is no procedure to have a hybrid membership brokerage – you are all in or all out.
Implication: Significant policy discussion at the local associations. And the decoupling of NAR, state associations, and MLS. The watch out – this could be like CPA’s not having GAP (generally accepted accounting principles). The wild wild West will not serve the consumer.
I’m a fan of the local and state associations and NAR. I see the value, the advocacy, the standards, the services like RPR, economic reports and research and so much more. More on this in another post.
I’m also a fan of freedom of choice… those who deliver the most value will not struggle to maintain members.
The Right Thing – Nothing Really New
The settlements also include the following:
- Anywhere will prohibit their brokerages and agents from claiming buyer agent services are free and will also require agents to include the listing broker’s offer of compensation for prospective buyers’ agents as soon as possible in each active listing.
- Agents must disclose that commissions are entirely negotiable and not set by law.
- No minimum commission requirements
- No technology or manual method that enables the sorting of listings by commissions offered.
The implication here? Nothing new – for over 20 years I’ve taught my agents to do the same, and executed my practice with these principles. Bringing these practices to a higher level of awareness is a good thing. Yet here is what I know, those who deliver the most value will not struggle to create thriving real estate practices.
For the vast majority of my REALTOR® colleagues – regardless of your brands position – is leadership and service not abdication. Get involved and be the change you want to see.
Doing the right thing is always the right thing!
The Case Summary:
- Sitzer | Burnett Case
- Moehrl Case
- Gibson Case
- Batton 1 & 2 Cases
- Burton Case
- March Case
- QJ Team Case
- Phillips Case
- Nosalek Case
- The Department of Justice / National Association of REALTORS® Case
The implication? List to last. Control your destiny. Become the best listing agent in your market.
#WinTheDay
