08/26/2024
DONT BELIEVE EVERYTHING YOU READ
The vilification of Realtors by the media is UNFAIR, UNTRUE and EXTREMELY BIASED. But what's new in a country that no longer demands true journalistic integrity from the media?
Why was National Association of Realtors (NAR) sued? It is my understanding that NAR, the largest trade association in America and pro-housing advocate, was sued under the guise that sellers were forced to provide a co-op commission and did not have a right to limit or even deny compensation to buyer's agents.
UNTRUE-LISTING FEES HAVE ALWAYS BEEN NEGOTIABLE, the seller could agree to give a listing agent XX%, and that agent would disclose an amount - if any - that they would "SHARE" with the buyer's agent in an effort to bring buyers to the table on the seller's behalf. That "shared amount", IF ANY, became a standard of practice as in most industries, though not fixed. After all, the buyer's pay the seller at the end of the day for the home, so in essence it is the buyer paying for everything, with the seller and buyer each paying for the cost of doing business. TRUTH: The "co-op" commission is an option to assist buyers, often short on cash to be able to purchase a home as, prior to the lawsuit, banks would not allow the buyer's commission to be paid within the closing cost structure. SINCE the lawsuit, recognizing the harm to consumers as an outcome, the FHA/VA, FNAMA/FHLMC has changed that outlook, BENEFITTING CONSUMERS.
Why did NAR settle at $418M but maintain innocence? First, the DOJ had already agreed to a settlement PRIOR TO THIS - but they RENEGGED ON THEIR AGREEMENT. So much for trust in the DOJ.
Given that NAR was not allowed to present their case in full, which often happens in class action lawsuits apparently, an inadequately informed jury made a decision. How could they have been adequately informed without ALL OF THE FACTS being presented? If NAR didn't settle, given the bias previously shown and the DOJ failure to comply regardless of the facts, NAR could have been penalized multiple times the settlement amount, essentially bankrupting them - all without hearing their side of the story. To protect NAR members, NAR settled the outrageous and false suit. Sadly, this happens every day. After all, who receives the biggest payment in a class action lawsuit? THE ATTORNEYS - THEY RECEIVE UP TO 50% OF THE AWARD, hmmm sounds like a predatory practice to me.
AS A RESULT: Before showing a property, buyer's no longer get to just USE AN AGENT WITHOUT PAYING FOR SERVICES unless agreed to in writing. Various buyer's agents have provided entry to a listed home without first signing an agreement, a contract, which protects all parties and clearly outlines expectations. That contract can have a fee, or not, depends on NEGOTIATIONS. A buyer doesn't have to accept the RE broker's desired fee and the broker doesn't have to work for less than they choose, all as NEGOTIATED WITH A BUYER. EACH PARTY GETS TO DECIDE.
And YES, sellers can still offer compensation to buyer's agents, via their listing fee - or not. But now that brokers are restricted from disclosing the seller offering, whatever it is or is not, via the transparency of the MLS, the buyer's agent MUST contact the listing agent to find out if the seller is offering anything on the buyer's behalf. There is NO COLLUSION, as the media would have you believe, but a RE Broker trying to work in the very muddy waters which have evolved from this settlement, trying to assist buyers wanting to buy a home. Buyer's, may or may not save money, but still will have the right to knowledgeable representation, and RE professionals wanting to assist and be paid fairly for their efforts will be able to negotiate their fees. Both consumer and professional get to decide what the compensation is.
REALTORS ARE PROFESSIONALS - MOST WORK LONG HOURS & EARNTHEIR COMMISSION ONCE A SALE GOES THROUGH.
If you have used a reputable, professional Realtor you will know how hard most work for their fees. REALTORs have a code of ethics to follow, and MOST truly want to serve their clients' needs as NEGOTIATED between them. I would be lying if I said they all bring the same benefits to their clients. All do not deserve the same compensation for services rendered, thus the fee negotiation.
IF YOU WANT TO KNOW THE TRUTH - ASK A REALTOR
I personally bring a lot to the table with my varied experience and expertise, as does each agent in my office and most in my local I Association. I have a BA in Political Science, an AA as a paralegal, am a Professional home Stager & Redesign Specialist, own an Estate Sale Company, while having served 23 years as a professional Realtor, and 20 years before that in varied Real Estate Services including Risk Management officer for BofA Financial Services and their Legal Division.
