Planet Money cover image

Planet Money

The real estate industry on trial

Apr 3, 2024
Mike Ketchmark, a personal injury lawyer from Kansas City, discusses his unexpected journey into the realm of real estate law. He takes on an antitrust case that questions the legality of high real estate commissions, spurred by the Burnetts' experience of paying over $15,000 in fees. Ketchmark uncovers potential collusion among agents and the historical practices that have shaped the industry. The stakes rise in the courtroom as the jury prepares to deliver a landmark verdict that could reshape real estate transactions nationwide.
28:41

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • The legal case exposed collusion in fixed real estate commissions, leading to a $5.4 billion antitrust verdict.
  • The verdict pushed for transparency in commission practices, reshaping the real estate industry towards consumer empowerment.

Deep dives

Illegal Commissions in Real Estate

Real estate agents in the US typically earn a commission when a house is sold, which can be high and fixed, leading to concerns about anti-competitive practices. A personal injury lawyer, Mike Ketchmark, took on a legal case representing homeowners over high commissions, exposing potential collusion between seller's and buyer's agents. Through evidence and expert testimonies, the case revealed a system-wide practice of fixed commissions, resulting in a successful $1.8 billion verdict against major realtor franchises and the National Association of Realtors.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode