Editor’s note: This story was originally published on Dec. 27, 2023. It was updated on Jan. 30, 2024, and again on Dec. 12 to reflect extensive new developments in existing litigation, and to add newly filed lawsuits.
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All of this grandstanding and complete manipulation of reality. Let’s go to each of those commission checks and see what the agents actually took home (before taxes). There are sometime 15 hands in the pot. I have often had to use commission monies to buy new refrigerators for clients, give them some help when it came to appraisal issues. No one wants to discuss the big elephant in the room: the irony that these suits come up during the largest equity gains in property values EVER. That’s a supply and demand issue and the consumer needs to look to Wall Street who has been buying up the 3 bed/2ba/1-2 garage homes since the crash in 2008. REITS never held residential homes — just commercial. And it was going to be a short term gig that allowed for an oversupply to even out. There is no incentive for these large firms to sell when in certain areas of the country, the entire is market is dependent upon the whim of a few companies. People are watching too much TV which glamorizes the real estate industry. Most agents I know work until they fall over dead. We have to create and fund our own retirements and health insurance — we have been denied access to group coverage for 30 year(?). And lastly, requiring that agents NOT be a member of NAR and NOT have to abide by the Realtor Code of Ethics. Working with a REALTOR means knowing that person HAS to act in a way that provides even greater protection for the consumer than just the law. Sellers have NEVER paid the commissions LOL…. it’s the Buyers who FUND the transaction and the funds are disbursed according to the Seller’s wishes at closing. That seller will become a buyer some day. The marketplace for selling a home includes for sale by owner, limited service listings (sellers can have listings placed in MLS only), full service brokerage and the spirit of cooperation among agents means often list and sell sides may have to cut commissions when neither side will give. This suit is going to remove consumer protections inherent within the industry and I see only one group winning besides the attorneys: Wall Street. Oh, BTW, check out who owns many of the shares of these large REITS — names like J P Morgan Chase and Goldman Sachs will come up. Have you tired to get a mortgage from them since the crash? I guess they are investing depositor funds into trusts and hedge funds that seek to profit and prevent their very depositors whose monies are being used to make the dream of homeownership a reality only for the most wealthy. End Rant for now (I’ve got almost 20 years in business selling, have owned, managed and provided consultation to large real estate teams and personally sold over 350 homes in some of the toughest markets).