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Jury Finds Realtors Conspired to Keep Commissions High, Awards Nearly $1.8 Billion Damages
Posted on 10/31/23 at 1:54 pm
Posted on 10/31/23 at 1:54 pm
quote:
A federal jury on Tuesday found the National Association of Realtors and large residential brokerages liable for about $1.8 billion in damages after determining they conspired to keep commissions for home sales artificially high.
The verdict comes in the first of two major antitrust lawsuits that target decades-old industry practices and seek to drive down commissions and change the way agents are compensated. The two-week trial involved claims by home sellers in several Midwestern states. The jury issued its verdict after just hours of deliberations.
Under antitrust rules, the presiding judge could triple the damages verdict, which would total more than $5 billion. The plaintiffs also have asked the judge to order changes to how the industry operates.
For several years NAR has been fending off accusations by U.S. antitrust officials and private litigants that it has conspired to keep home-sale costs high in the face of major technological upheavals. This verdict is by far the group’s biggest setback yet.
An NAR spokesman said, “This matter is not close to being final as we will appeal the jury’s verdict.”
Only about 40 years too late...
4
Posted on 10/31/23 at 2:12 pm to Big Scrub TX
Only several decades too late.
I have remained stunned at how sticky the ridiculous 3% and 3% pricing has stayed in force in the internet age.
The several times I've had to list in the past 10 years or so, I would always find a listing agent that would take 1% (1.5% max) and when I would direct the listing agent to write the listing such that the selling agent was only paid 1-2% instead of 3%. They would just tell you straight up: the selling agents will boycott such listings.
frick all of these motherfrickers.
I have remained stunned at how sticky the ridiculous 3% and 3% pricing has stayed in force in the internet age.
The several times I've had to list in the past 10 years or so, I would always find a listing agent that would take 1% (1.5% max) and when I would direct the listing agent to write the listing such that the selling agent was only paid 1-2% instead of 3%. They would just tell you straight up: the selling agents will boycott such listings.
frick all of these motherfrickers.
Posted on 10/31/23 at 2:31 pm to Big Scrub TX
Again?
Posted on 10/31/23 at 2:41 pm to Big Scrub TX
6% of a 200k house is 12k in commission vs 6% of 1M house is 60k in commission, for the same amount of work. It pains me to see realtors expecting same % on higher value homes.
Sellers agent fees should be negotiated between the owner and the realtor. Buyers agent fees should be 1% for homes under 500k and scaled down as the sale price goes up, WITH the option for the seller to go higher to encourage other realtors to sell it.
The buyers agent doesn't have to take pictures and list the house so 1% should be enough to cover their few hours of work showing the house and signing papers.
Sellers agent fees should be negotiated between the owner and the realtor. Buyers agent fees should be 1% for homes under 500k and scaled down as the sale price goes up, WITH the option for the seller to go higher to encourage other realtors to sell it.
The buyers agent doesn't have to take pictures and list the house so 1% should be enough to cover their few hours of work showing the house and signing papers.
This post was edited on 10/31/23 at 2:48 pm
Posted on 10/31/23 at 2:55 pm to Bazzatcha
quote:
6% of a 200k house is 12k in commission vs 6% of 1M house is 60k in commission, for the same amount of work
You think its the same amount of work between those 2 price points?
Posted on 10/31/23 at 3:01 pm to SDVTiger
quote:
You think its the same amount of work between those 2 price points?
Yea pretty much.
shite brokers seem to be even less valuable the higher up the purchase price goes. Especially in CRE arena.
Laughable seeing brokers getting 6 figs in commissions when they are by orders of magnitude the least sophisticated or knowledgeable party in a transaction.
Posted on 10/31/23 at 4:44 pm to JohnnyKilroy
quote:There is. Not even close. The biggest listings take more of my time and money to promote. It’s expected by the sellers.
Yea pretty much.
quote:No kidding. There are a LOT of worthless leeches in my industry, no principals or morals.
Laughable seeing brokers getting 6 figs in commissions when they are by orders of magnitude the least sophisticated or knowledgeable party in a transaction.
I’m the only realtor I know who won’t do dual agency (represent buyer and seller). And I know hundreds of them.
This lawsuit is long overdue, the few agents like me who already negotiate commissions before we list properties will be affected less than others, and hopefully this will cull oh….90% or so of the leeches.
This post was edited on 10/31/23 at 4:47 pm
Posted on 10/31/23 at 4:45 pm to Big Scrub TX
We purchased a 2nd home on Perdido Key earlier this year and the entire time we were shopping ‘our’ buyers agent just loved every house and spoke of all the positives of each one. No matter if it fit our actual needs or not. She wanted me to buy and buy soon. I should have fired her arse but we found what we wanted.
She literally just set us a log in to her ‘Zillow’ style site so we got info on properties as they came up.
When we sold our previous home in PK, our agent, different lady, had it listed for 2 weeks. No offers yet so she recommended we reduce our asking price by $20K. We refused, 4 weeks later we got 2 full price offers on the same day. 2 freaking weeks and she wanted to reduce the asking price.
I must say I’ve used a realtor friend for all my local real estate on both the commercial and residential side and he’s awesome. Looks out for me and will tell me if he thinks it’s a bad deal for me and warn me of things I may miss when looking at properties. We’ve worked together on 8-9 properties over the years and he’s worth the money. I guess them PK ladies are spoiled by everything selling as soon as it listed.
She literally just set us a log in to her ‘Zillow’ style site so we got info on properties as they came up.
When we sold our previous home in PK, our agent, different lady, had it listed for 2 weeks. No offers yet so she recommended we reduce our asking price by $20K. We refused, 4 weeks later we got 2 full price offers on the same day. 2 freaking weeks and she wanted to reduce the asking price.
I must say I’ve used a realtor friend for all my local real estate on both the commercial and residential side and he’s awesome. Looks out for me and will tell me if he thinks it’s a bad deal for me and warn me of things I may miss when looking at properties. We’ve worked together on 8-9 properties over the years and he’s worth the money. I guess them PK ladies are spoiled by everything selling as soon as it listed.
Posted on 10/31/23 at 4:50 pm to WilsonPickett
quote:We’re rare. If I’m looking at a home more than 10 years old and can’t find at least 5 things wrong with it it’s REALLY well maintained.
Looks out for me and will tell me if he thinks it’s a bad deal for me and warn me of things I may miss when looking at properties.
And I point those problems out to my buyers, because if they buy those problems are their problems.
Posted on 10/31/23 at 5:37 pm to JohnnyKilroy
quote:
Yea pretty much.
Theres a reason why everyone says you arent the brightest
Posted on 10/31/23 at 6:00 pm to Bazzatcha
quote:
6% of a 200k house is 12k in commission vs 6% of 1M house is 60k in commission, for the same amount of work.
I feel the same way about restaurant tips.
Posted on 10/31/23 at 6:56 pm to SDVTiger
quote:
Theres a reason why everyone says you arent the brightest
I work 7 and 8 figure deals routinely.
The last deal I had that closed was an industrial property for 8 figures. My client (seller) didn't have a broker and receiving the LOI was the first and last time I ever heard from the Buyer's broker.
We worked with the principals and their attorneys directly. Buyer's broker cleared over 300k at closing (Buyer paid) and he sent all of 3 emails from LOI to close.
I work with brokers every single day. The best ones are a help but they really aren't anymore than a glorified middle man. As evidenced by the information in OP, they most valuable attribute is their gatekeeping, not their competence or ability.
Every deal has its nuances but if you automatically think a higher purchase price = more work then you probably have no idea what the frick you are doing.
This post was edited on 10/31/23 at 7:00 pm
Posted on 10/31/23 at 7:02 pm to JohnnyKilroy
LOIs for Private money deals isnt the same as selling million dollar homes vs 200k homes
Posted on 10/31/23 at 7:17 pm to llfshoals
Good realtors are worth it. Most aren't good. You may be the exception, so I'm not potentially bashing you, but echoing what you say.
Posted on 10/31/23 at 7:19 pm to SDVTiger
quote:
LOIs for Private money deals isnt the same as selling million dollar homes vs 200k homes
What makes selling the million dollar home so much more intensive vs the 200k home? Hire a professional to takes pictures, throw it on MLS, host a couple open houses and then use a promulgated form for contract and closing docs? Wow.
If anything, the 200k home probably requires a lot more work to match up a buyer and a seller.
Posted on 10/31/23 at 7:29 pm to JohnnyKilroy
You just continue to prove me and everyone else right
How anyone hires "attorneys" from TD is beyond me
How anyone hires "attorneys" from TD is beyond me
Posted on 10/31/23 at 7:34 pm to SDVTiger
You're dodge of the question is noted.
Posted on 10/31/23 at 7:39 pm to JohnnyKilroy
Not really. What you said is just so stoopid
Imagine thinking selling a 200k home that everyone can qual for vs million dollar home with limited qual borrowers. Then the difference in clientele alone is not harder or more work
Just cause you deal with Private money that doesnt require anything doesnt make you smart at all
Your agruements are just lazy
Imagine thinking selling a 200k home that everyone can qual for vs million dollar home with limited qual borrowers. Then the difference in clientele alone is not harder or more work
Just cause you deal with Private money that doesnt require anything doesnt make you smart at all
Your agruements are just lazy
Posted on 10/31/23 at 7:45 pm to SDVTiger
quote:
Imagine thinking selling a 200k home that everyone can qual for vs million dollar home with limited qual borrowers. Then the difference in clientele alone is not harder or more work
It’s 5x the work?
Lmao.
Posted on 10/31/23 at 8:14 pm to JohnnyKilroy
Its 100 times the work
Imagine comparing an LOI to that
Imagine comparing an LOI to that
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