Recently, you may have heard news about our trade group, the National Association of Realtors (NAR), including word of lawsuits, along with accusations of “conspiracy” and “collusion.”
Let’s Unpack This Story.
NAR did lose a class action lawsuit in Missouri. The suit alleged that some home-sellers didn’t know that their 6% real estate fee was negotiable, nor that it’s split between buyer and seller agents. A jury ruled in the home-sellers’ favor.
Cue Media Onslaught.
According to some, the power of the NAR, once the “invisible hand” behind “sky-high commissions and real estate prices” for 100 years...has been destroyed. Now, they say, everything is going to change, beginning with falling home prices.
But will they? No trade group controls US home prices. Prices reflect basic economics. It’s a matter of low supply vs. high demand, endemic in the US. And that has nothing to do with the NAR. And in fact, at D+Co., we still see multiple offers on the homes we show. If current market forces stay the same, I don’t see prices falling sharply any time soon.
Moving Forward, What Changes Are Coming as a Result of the Judgement?
No one knows for sure. But I predict better communication with clients, resulting in less confusion, a good thing. We should see more clarity about commissions too.
Is it possible that more buyers and sellers will do everything themselves, using internet tools? Perhaps. But if you’ve ever wished you could call on an old-school travel agent to help you with complicated travel plans, you may agree with me: There’s a time and place for experts.
And buying or selling a home, a truly consequential event, is exactly that.
Learn more here.
