In many ways today’s federal court ruling has been a “Thanksgiving” for all homeowners and buyers across the United States.
While millions of homeowners will sell only one or two properties in a lifetime, today’s court approval to remove offers of compensation from multiple listings services and requiring buyer agents to sign agreements with buyers before showing properties was clearly an offer in compromise for the industry. The settlement amount didn’t come cheap– but at a price tag of $418 million from the National Association of Realtor and more than 500 Realtor-MLSs, $250 million from HomeServices Of America, $30.6 million from 15 non-Realtor MLSs, and 13 large brokerages. An additional $300 million will come from RE/MAX, Keller Williams, and Anywhere which owns brands such as Century 21, ERA, Coldwell Banker, Better Homes and Gardens Real Estate, Sotheby’s International Realty, and Corcoran.
However, the current settlement didn’t come with a cold turkey or blessing of the United States Government. A day ago the Department of Justice ( DOJ ) filed a last-minute statement of dissatisfaction against the industry’s self-guided resolve to uphold the practice of allowing listing agents to offer compensation to buyers’ agent outside of the MLSs. Uncle Sam believes this mechanism will invite more problems than bring solutions.
The DOJ was quick to clarify that today’s court approval will not shield or protect the industry from future anti-trust lawsuits or regulations from the United States.
To date — over 490,000 people across the United States have submitted claims for a portion of the $700 million pie as the industry continues with caution that Government regulation or lawsuit against the industry remains a possibility.
Despite today’s approval by a federal court in Missouri, the industry’s largest real estate brands and National Association of Realtor remain exposed to other allegations with antitrust implication including the Realtor Clear Cooperation Policy, the no-commingling policy, its three-way agreements, and the policy requiring a Realtor membership to access MLS services.
While the commission chapter one has come to a close ( sort of ) this Thankgiving, a half dozen future chapters have yet to be written on the future direction of the industry.
At Homeselling AI we believe the ideal solution to the industry’s challenges is to enable consumers to turn on their smartphones for real-time autonomous home selling. Only by removing human errors, mistakes, and omissions can the industry bring satisfaction to all parties including the United States Government.