Whoa, that’s a big verdict! A jury in Kansas City just awarded $1.8 billion to a group of individuals who sued the National Association of Realtors and other groups over how commissions worked in home sales.
I have to say, I agree with the verdict. This was one of the things that stood out to me when I became a broker. The way commissions were structured seemed antiquated.
Not everyone possesses the same level of expertise or puts in the same effort. In my opinion, many agents I’ve interacted with are not very competent. In the old system, they would get paid the same amount as the best agents.
The Northwest Multiple Listing Service noticed this lawsuit making its way through the courts and took proactive steps to address it. As a result, compensation is now entirely negotiable in Washington State.
If you’re planning on engaging in a real estate transaction this year, ensure that you have an agent who is willing to explain and openly discuss how compensation works. Don and I do not shy away from this conversation.
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$1.8 Billion Verdict!
That’s an attention grabbing headline for sure. Multiple people have reached out to Don and me to ask questions about this verdict against the National Association of Realtors and what it means for real estate in Washington State.
I thought it would be helpful to look at some of the claims made by the Dept. of Justice and how the NWMLS (our local multiple listing service) has addressed these allegations.
Talking about value for money and how compensation works freaks a lot of people out. I believe it’s because they don’t know how to articulate how they actually add value to a transaction.
If how all this works is curious to you, Don and I would love to do a Sit Down with you.
IS BUYING A PROPERTY “FREE” TO THE BUYER?
That’s a misleading claim according to the Department of Justice. Was it happening and is it true?
Multiple people have reached out to Don and me to ask questions about this verdict against the National Association of Realtors and what it means for real estate in Washington State.
I thought it would be helpful to look at some of the claims made by the Dept. of Justice and how the NWMLS (our local multiple listing service) has addressed these allegations.
Talking about value for money and how compensation works freaks a lot of people out. I believe it’s because they don’t know how to articulate how they actually add value to a transaction.
If how all this works is curious to you, Don and I would love to do a Sit Down with you.
CAN AGENTS ONLY SHOW BUYERS THE HOUSES WITH THE BIGGEST COMMISSIONS FOR THE AGENT?
That was one of the allegations from the Dept of Justice in their lawsuit against the NAR. This case was in Kansas City, but did this kind of thing happen to consumers in Washington State?
Actually, it is possible that an agent would steer buyers towards homes with higher commissions. That kind of behavior turns my stomach. If you get resistance from your agent about showing you a property, trust your instincts and question why.
Talking about value for money and how compensation works freaks a lot of people out. I believe it’s because they don’t know how to articulate how they actually add value to a transaction.
If how all this works is curious to you, Don and I would love to do a Sit Down with you.
IS IT POSSIBLE TO BUY A HOUSE IF YOU’RE NOT A MEMBER OF THE NWMLS?
That’s one of the conspiracy claims by the Dept of Justice against the NAR. They believe that policy is unfair to buyers.
This is a tricky one for me since sellers are allowing people to come tour their homes. There are some protections provided by limiting access only to members. Chief among those protections is a log of who entered and when. If something is damaged or stolen, you can go back and see who was in the house at that time.
If you do not need to be a MLS member, there would be no way to track or enforce misconduct.
But this was one of the items brought up in the lawsuit.
Don and I have a strategy about this, and we talk about it with our sellers before we list the home.
Talking about value for money and how compensation works freaks a lot of people out. I believe it’s because they don’t know how to articulate how they actually add value to a transaction.
If how all this works is curious to you, Don and I would love to do a Sit Down with you.
Ron Upshaw
Ron has been a part of just about every kind of real estate transaction you can think of. He understands that finding the perfect place for you and your family is crucial. Schedule Your Sit Don with Ron today!