{"id":2041009,"date":"2023-09-22T03:40:02","date_gmt":"2023-09-22T07:40:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-homes-are-bought-and-sold-may-change-drastically-due-to-multi-billion-dollar-lawsuits\/"},"modified":"2023-09-22T03:45:06","modified_gmt":"2023-09-22T07:45:06","slug":"how-homes-are-bought-and-sold-may-change-drastically-due-to-multi-billion-dollar-lawsuits","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-homes-are-bought-and-sold-may-change-drastically-due-to-multi-billion-dollar-lawsuits\/","title":{"rendered":"Multi-billion dollar lawsuits may drastically alter the way homes are bought and sold."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-homes-are-bought-and-sold-may-change-drastically-due-to-multi-billion-dollar-lawsuits%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2041009&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Challenging Times for the National Association of Realtors<\/h2>\n<p>Since 1908, the National Association of Realtors (NAR)\u200b has been the\u2062 authority in regulating real estate agents and\u200d operating the nation&#8217;s multiple listing service \u200b(MLS). However, they are now facing their biggest challenge yet. If they fail to resolve a class action lawsuit that questions their practices, the landscape of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/chinese-buyers-spent-a-record-6-1b-on-u-s-real-estate-in-2021\/\" title=\"Chinese Buyers Spent a Record .1B on U.S. Real Estate in 2021\">real estate transactions<\/a> in the United States could be forever changed.<\/p>\n<p>The Sitzer\/Burnett and Moehrl cases, which are part of\u2064 the class action lawsuits, have already \u2063resulted in significant settlements. ReMax had to pay $55 million, while \u2062Anywhere Real\u2063 Estate (formerly Realogy) paid $83.5 million to resolve all claims against \u200bthem.<\/p>\n<p>The main issue being challenged is the handling of commissions \u2062in real estate transactions. The\u200b lawsuits argue that the process is \u200canticompetitive because \u2063sellers are bound \u2062by predetermined commission rates, typically around\u2064 6 percent, with no room for negotiation.<\/p>\n<\/blockquote>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/world\/sa-defied-the-national-trend-for-new-home-sales-while-other-states-still-in-negative-territory-5480509?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>SA Defied the National Trend \u2062for New Home\u2062 Sales While Other\u200c States Still in Negative Territory<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/25\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/world\/sa-defied-the-national-trend-for-new-home-sales-while-other-states-still-in-negative-territory-5480509?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n<a href=\"http:\/\/www.theepochtimes.com\/real-estate\/30-year-mortgage-rates-surge-closer-to-8-percent-as-existing-home-sales-plunge-5479363?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3>30-Year Mortgage \u200cRates Surge Closer to 8 Percent as Existing Home Sales Plunge<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/24\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/real-estate\/30-year-mortgage-rates-surge-closer-to-8-percent-as-existing-home-sales-plunge-5479363?ea_src=author_manual&#038;ea_med=related_stories\"><\/a>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>The class action \u200dplaintiffs are seeking $13.7 billion in damages from multiple defendants, with the NAR as the primary target. The NAR is\u2063 hoping for a \u2062settlement, as they cannot afford a \u2063billion-dollar verdict. However, industry experts like Rob Hahn from \u20637DS Associates are curious \u2063about \u2062the plaintiff&#8217;s legal strategy following the RE\/MAX settlement.<\/p>\n<p>In response, NAR Vice President \u200bof Public Relations and Communications Strategy,\u200c Mantill Williams, stated that settlement is an option, but they remain committed\u200b to defending themselves in court. They believe their\u2062 rules are lawful and\u200d promote fair competition\u200c and transparency in the market.<\/p>\n<p>While there\u200b has been\u2062 extensive coverage of\u2063 the lawsuits, realtors have been relatively quiet about the potential impact\u200b on their practices. Erin Sykes, Chief Economist and Real Estate Wealth Advisor at \u2064Nest Seekers International, suggests that agents\u2062 are more concerned about the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-us-housing-market-facing-many-challenges-from-high-mortgage-rates-to-lack-of-supply\/\" title=\"US housing market struggles with high mortgage rates and limited supply.\">current real\u200d estate landscape<\/a> \u2062with limited \u200cinventory. She believes that the \u2063fear surrounding the lawsuits may be exaggerated.<\/p>\n<p>RE\/MAX, despite agreeing to a $55 million settlement, denies\u2062 any wrongdoing mentioned in the lawsuit. They claim that the payment was made to eliminate uncertainty and will make changes to their business \u200bpractices, such as no longer requiring sellers \u200bto pay the buyer agent&#8217;s commission.<\/p>\n<p>However, the focus remains on the NAR, as the outcome\u2062 of their case could significantly impact real estate transactions. The industry may shift towards optional and negotiable commissions, according\u2063 to Mr. Hahn. The potential damages against the NAR and its MLS members could reach \u200cbillions of dollars.<\/p>\n<p>The next case is scheduled to\u2063 begin \u200don October 16 \u200bin U.S. District Court in Kansas City, Missouri, with another case expected in a U.S.\u200b District Court in Chicago\u200d in 2024.<\/p>\n<p>Despite the potential changes, Ms. Sykes believes that experienced and skilled agents will still thrive in the industry. She emphasizes the importance \u2063of identifying oneself as a broker based on expertise and marketability, rather than solely relying on commission discounts.<\/p>\n<p> <\/p>\n<h2> How does the current practice of \u200b<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-homes-are-bought-and-sold-may-change-drastically-due-to-multi-billion-dollar-lawsuits\/\" title=\"Multi-billion dollar lawsuits may drastically alter the way homes are bought and sold.\">predetermined commission rates impact sellers&#8217; ability<\/a> to negotiate\u200b and consumers&#8217;\u2063 options in choosing a real estate \u200cagent?<\/h2>\n<p><span>  Hey understand that a \u2064trial could be detrimental to their \u2064reputation and the real estate industry as a whole. If the plaintiffs are successful, \u2063it could lead to a major restructuring\u200c of the way commissions are handled in\u200b real estate transactions.<\/p>\n<p>The lawsuits argue that the current practice \u200cof predetermined commission \u200drates is anticompetitive \u200dand limits the \u200bability of sellers to negotiate. Critics argue that these fixed rates result in inflated prices for\u200d consumers and limit their options in choosing a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/young-people-should-get-involved-in-politics-cant-wait-in-line-rep-cawthorn\/\" title=\"Young People Should Get Involved in Politics, Can\u2019t \u2018Wait in Line:\u2019 Rep. Cawthorn\">real estate agent<\/a>. They claim\u2062 that this lack \u2064of competition\u200b leads\u200c to higher costs and \u2063less favorable terms for sellers.<\/p>\n<p>The NAR, \u200con the other hand, defends the current system, stating that it \u2063promotes efficiency and\u200b fairness in \u200dthe market. They argue that the fixed commission rates ensure a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brexit-trade-deal-published-as-uk-calls-for-end-to-ugly-divisions\/\" title=\"Brexit trade deal published as UK calls for end to \u2018ugly\u2019 divisions\">level playing field<\/a> for\u2062 all agents and eliminate the\u200c potential\u2064 for price discrimination against certain sellers.<\/p>\n<p>While this issue is being debated in \u200dthe courts, it is important to consider the potential consequences of a ruling against the\u200c NAR. If the lawsuits are successful, \u200bit could open the door to greater competition in the real estate \u2062market, allowing sellers to negotiate lower \u2064commission rates \u2063or\u200b explore \u200calternative models of compensation. This could ultimately lead to cost savings for consumers and a\u2062 more competitive marketplace.<\/p>\n<p>However, there are \u2064also potential downsides to consider. Without fixed commission\u200b rates, it could\u200c become more difficult for smaller real estate agents\u2062 and firms\u2064 to compete with larger, more established players in the industry. It may also lead to increased complexity \u2062and variability \u200din commission structures, potentially confusing\u2063 consumers and making \u2063it harder to \u2062compare prices and services.<\/p>\n<p>Ultimately, the outcome of this class action lawsuit will \u200chave far-reaching implications for the NAR and the real estate industry as a whole. It\u200d will\u200d shape the future of how commissions are handled in real estate transactions and could potentially \u200bchange the landscape of the industry. Whether the NAR will be able to resolve the lawsuit through a settlement or face a trial remains to be seen, but one thing is certain &#8211; they are facing\u200d one of their biggest challenges in their over\u200c a century-long history.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>estate agents do business could be forever changed.<\/p>\n","protected":false},"author":2335,"featured_media":2041010,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2041009","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041009","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2335"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2041009"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2041009\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2041010"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2041009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2041009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2041009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}