The David Greene Show
The NAR fallout What Happened & Why | Episode 33
Jan 21, 2025
In this engaging discussion, Christian Basilder, a seasoned loan officer and broker, joins David Greene to unravel the fallout from the Sitzer Burnett case against the National Association of Realtors. They share insights on the $418 million settlement affecting real estate commissions and its implications for both agents and buyers. The duo explores new business models that prioritize transparency, as well as strategies for navigating today's market shifts, including the role of seller credits and effective negotiation tactics.
30:47
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Quick takeaways
- The Sitzer Burnett case led to significant financial penalties for NAR, altering how buyer's agent commissions are approached in real estate transactions.
- Changes in commission structures necessitate buyers to negotiate their agent fees directly, adding financial strain amidst a challenging housing market.
Deep dives
Overview of the Sitzer Burnett Case
The Sitzer Burnett case revolved around allegations that sellers were unfairly required to pay buyer's agent commissions, which led to a class action lawsuit against the National Association of Realtors (NAR) and various brokerages. Attorneys representing the sellers argued that this practice misled clients into believing they were victims of a predatory system. However, it was clarified that sellers were not forced to pay these commissions but chose to do so to access the Multiple Listing Service (MLS). This underlying dynamic reflects a broader issue within real estate, where sellers often feel taken advantage of, but many fail to recognize that participation in the MLS typically necessitates compensating buyer's agents.
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