Author: kps0925

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.

In One word. Everything.

Between March 2022 and May 2022 the U.S. Federal Reserve raised its interest rate for the 4th consecutive time causing a once-hot real estate market to reverse momentum.

Likewise – the world witnessed how the stock price of Gamestop skyrocketed from near zero into hundreds of dollars in a few short weeks.

Again with AMC.

And — again with Silicon Valley Bank – when rumors hyped bank depositors to withdraw their money deposits, causing the bank to shutdown overnight.

The above case studies highlight the reality of today’s real-time world. Once took weeks or months to reach mass audience, news today via social media can trigger ripple effects across systems, countries, and industries.

It is happening in the real estate industry and the typical real estate agent has no mechanism to respond to the speed of today’s buyers.

In just one or two weekends a property will have been exposed to virtually every buyer in the market.

Favorable news can generate 10-50 offers on properties almost instantly while fake, fear, and uncertain news can drop demand to almost zero in just a few days.

The bottom line is yesterday’s S-L-O-W and costly ways to sell properties have no place in today’s marketplace. At least not if the objective is to best serve consumers.

This question can be answered in one sentence.

But first a little background:

Regular surveys across the United States by Realtor Associations show similarities in terms and conditions of accepted offers that Realtors and inexperienced homeowners often overlook — until too late!

The below market data comes from the MN Association Of Realtors https://www.mplsrealtor.com/market-data/ for the month of March, 2023:

Inspections waived 35%

Cash 23%, Conventional 66%, FHA 5%, VA 2%, Other 4%

Average purchase to list price is 101.2%, Median purchase to list price is 101.4%

Seller contribution towards buyer’s closing costs 21%

Home warranties included 10%

Contingent on the sale of the buyer’s home 11%

Escalation clauses included in 4%

Appraisal gaps included in 23% of financed purchases

One Sentence Response

Because it has been scientifically proven time and time again that a listing commission will handcuff the homeowner from offering terms, conditions, and assistance to buyers to increase the chance of winning offers.

Now for the elongated response:

Asking a homeowner to pay $10,000 to $20,000 in listing commissions and again to discount or offer $10,000 to $20,000 to help buyers is too SCARY.

Unfortunately, without removing the listing commission many sellers will be pressured to discount price to attract lower price bracket buyers who may or may not be interested.

It should be noted that discounting the price of properties will not have the same effect as helping buyers to purchase; so let’s compare:

Seller A has the exact same property as Seller B for sale.

Same price

Same size lot

Same square feet

Same physical attributes

Same tax

The two properties are located across the street from each other in a town home community. The only difference is Seller A chose to sell his home through a listing agent who charges a listing commission. Seller B chose to sell through a Homeselling Ai agent to skip the listing commission.

In this apple for apple comparison the empirical evidence will be in the fact that Seller B has the flexibility to leverage the same money that Seller A had locked himself into a listing commission by offering incentives, assistance, and inspection/repair credits to create or increase higher demand for the same property.

In fact, by creating and increasing demand for the same property Seller B increases his chance of receiving multiple offers to escalate for full or higher purchase price. In many markets offering $1000 to $10,000 to help buyers, albeit for repairs, interest rate buy down, closing cost, financing assistance, or other needed expenses can skyrocket an extra $5,000 to $50,000, or more in profit.

Be sure to ask your Homeselling AI agent for your free report WE’RE TAKING THE SCARY OUT OF REAL ESTATE to learn secret #2 how skipping the listing commission can protect properties from having to discount. Visit www.payperoffer.com for more detail on how Homeselling AI has safely and effectively replaced the SCARY discount.

Homeselling AI invented the NoDiscount process since 2003 to help consumers to remove the complexity of having to discount properties to find buyers. Now with accelerated technology Homeselling AI makes it even easier to skip the listing commission.

Over the past 20 years and according to the US Copyright Office ( recorded as public record ) on Copyright.gov:

2003: We invented a scientific PROCESS to sell real estate using each letter of the word P-R-O-C-E-S-S as a scientific element to automate the slow, tedious, and random home selling tasks that cause agents to be slow and costly. Copyright# TXu001187679

2005: We wrote How to Buy or sell your home in 1 minute to put the P-R-O-C-E-S-S to work by increasing agent performance and lowering commission. Copyright# TX0006546631

2007: We copyright protected details on The Automatic Way To Get Offers using the PROCESS.. Copyright TXu001593595

2007: We received a US Registered Trademark for NoDiscount. Professional investors and brokers from the US to Canada and Australia licensed our NoDiscount P-R-O-C-E-S-S to beat market offers and guarantee properties from selling at discounts. Reg# 3209158

2008: We received a US Registered trademark for The Automatic Way To Buy And Sell Real Estate. Registration# 3428952

2009: We created the first AI platform by aggregating answers to billions of questions through text messaging in partnership with one of the largest mobile phone companies. Unfortunately the real estate market crashed.

2020: We received a US registered trademark for Turn Your Smartphone Into A Real Estate Agent! Registration# 6112691

2021: We wrote We’re taking the SCARY out of real estate. Copyright# TX0008989430

2022: The US Patent & Trademark Office reapproved my NoDiscount trademark for real estate ( reg#6915937 ) and educational services in sales and marketing ( Reg# 6221143 ) .

Ai became a hit in 2023 — about 14 years after we created the largest Ai text messaging platform in 2009.

2023: Our parent company, Forsalebyweb.com, is proud to announce the most innovative brand in homeselling AI — Homeselling.AI. We’re using AI to power the same U.S. Copyright protected P-R-O-C-E-S-S to change the real estate industry forever!

Institutional home buyer OPENDOOR has been hit with a $62 million fine for cheating and lying to consumers about cost and savings by not selling homes on the open market.

“Opendoor promised to revolutionize the real estate market but built its business using old-fashioned deception about how much consumers could earn from selling their homes on the platform,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “There is nothing innovative about cheating consumers.”

Thousands of consumers have been lured by the promise of no headache home selling without understanding the risks and true cost of selling without open market offers.

The bottom line is an OpenDoor offer should be treated as simply another offer.

https://www.ftc.gov/news-events/news/press-releases/2022/08/ftc-takes-action-stop-online-home-buying-firm-opendoor-labs-inc-cheating-potential-sellers

Instead of the usual 1-7% real estate commission without a guarantee, try Pay Per Offer.

In the founding days of One Minute Home Selling we wanted to focus on creating a most efficient way to generate offers for properties. We didn’t want real estate commission to get in the way of profit. It didn’t matter whether our users were paying 10% commission or zero what they really wanted was the most profit from the sale of a property.

It was a difficult task — and difficult conversation — to determine whether paying commission could produce better result than going for sale by owner. As debates between hiring Realtors vs. Selling by owner raged on the internet it became evident that it was only a matter of time when offers including commissions could be compared in real-time.

Here we are in 2022! Now you can compare offers side-by-side and pay per offer received.

This has been the greatest innovation for the industry since the birth of the multiple listings service ( mls ) almost 90 years ago.