Home sellers recently achieved a significant victory in a 1.8 trillion dollar lawsuit against the National Association of Realtors and various traditional real estate brokerages. The crux of the matter revolves around the customary practice of listing brokerages offering a cooperative commission to the buyer's agent as compensation for bringing a buyer to the property.
The plaintiffs argued that it is unjust for them to bear the cost of the buyer's agent commission. This cooperative commission is openly disclosed on the Multiple Listing Service and is funded from the funds brought in by home buyers during the transaction.
At HomeBuyer Brokerage, we proudly hold membership in the National Association of Exclusive Buyer Agents. Our core focus lies in representing home buyers throughout all stages of their real estate transactions. Similar to buyer agents affiliated with conventional real estate brokerages, our compensation is derived from the cooperative commission.
Through our buyer brokerage agreements, we act as fiduciaries for our clients, diligently safeguarding their best interests. In contrast to traditional buyer agents, we steer clear of dual and designated agency arrangements. We hold steadfast to principles of transparency and uphold the importance of consumer choice in our relationships with home buyers.
There is a valid concern that these lawsuits could potentially have adverse repercussions for consumers, particularly home buyers. It underscores the importance of navigating this legal landscape with due diligence and thoughtful consideration for all parties involved.
Rich Rosa the president of the National Association of Exclusive Buyer Agents says,
"A system that makes it harder for first-time and lower-income home buyers to retain loyal representation won't save home-buying consumers money. The lack of trusted representation will lead to costly mistakes, ultimately costing home buyers more money."
NAEBA believes calls for dismantling rules requiring REALTOR® members to list all advertised properties on the MLS are dangerous.
Allowing REALTORS® to bypass their local MLS for alternative platforms, encouraging what is known as a "pocket listing," could lead to sellers and agents circumventing Fair Housing laws and opening the door to disparate treatment of protected classes.
At a minimum, it severely limits a seller's exposure of their home to the marketplace and more than 1.5 million REALTORS®, potentially costing sellers a lower sale price.
"Why would any seller want to limit exposure of their listing to home buyers," Rosa said. "A seller doesn't have to use a REALTOR® or any real estate agent, but real estate professionals should not encourage 'pocket listings' and limit which consumers see homes for sale."
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