When purchasing or selling a house, the majority of Americans rely on real estate agents because we provide vital services, knowledge, and advice.
Eight jurors in a Missouri court were persuaded in October that the long-standing compensation structure for real estate brokers amounted to a conspiracy to break antitrust laws. Despite having the flimsiest legal foundation, the jury’s decision has caused falsehoods about the real estate sector and what is next for it.
Plaintiffs’ lawyers have filed fresh cases alleging that our profession comprises a coordinated attempt to overcharge Americans wanting to purchase and sell their houses. The plaintiffs’ attorneys stand to earn handsomely should the decision hold. There is no way that this is not the case.
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The buyer brokers are compensated by listing brokers for finding a buyer; this remuneration arrangement, which plaintiffs’ attorneys want to undermine, increases homeownership by increasing consumer choice and market competition. Sellers may guarantee they get the best offer, sell their house for the greatest price, and have their property seen by more buyers by using an MLS platform.
Buyers who are novice owners or seasoned buyers alike benefit from expert representation. Saving for a down payment may be challenging, especially for lower- and middle-class purchasers. For many, purchasing a home will be the most important and complicated purchase of their life.
Adding broker pay to closing expenses will make homeownership even more unattainable for these consumers. This would particularly apply to veterans purchasing homes, since VA loans forbid them from having to pay buyer brokers’ fees.
Real estate commissions are negotiable
It’s crucial to realize that there is no set quantity or kind of remuneration required by the National Association of REALTORS’ guidelines. Agents and their customers may agree on any kind of compensation structure, including a set fee, an hourly rate, or a percentage.
In addition, NAR does not determine commission rates, despite what some falsely say about our sector. The selling broker and their client may choose to pay whatever amount to a buying broker; the choice is entirely theirs.
Plaintiffs’ lawyers and their proxies chose to disregard a deeper, more important truth: Realtors provide value throughout America and are an integral part of our communities, not a threat to consumers. As the proud president of NAR, I can attest to this, but I also have firsthand experience.
I seen directly at an early age the positive impact real estate brokers can have on families striving for financial security. Before I became ten years old, my single mother relocated my three siblings and myself eighteen times. When my mom informed us she had saved money and had been working with a real estate agent to locate a home she could afford, we were living in a modest rental.
I can still clearly recall the feeling of security I had when I first entered that house, and I know that it was made possible by our agent, who rejoiced with my family as we passed the threshold for the first time and who operated her own little company in Caldwell, Idaho. There are many such stories like mine.
Realtors are industrious entrepreneurs who devote their days to serving our customers and earn, on average, less than $60,000. The majority of Americans resort to real estate agents when buying or selling a house because we provide essential services, information, and advise, despite the claims of plaintiffs’ lawyers that our industry is outmoded.
Do you need a Realtor to buy a house? How real estate agents help consumers navigate the system.
In addition to assisting buyers and sellers through the labyrinth of papers and complicated paperwork, we also make sure that our clients’ interests are represented throughout pricing, negotiations, and closing by coordinating with lenders, inspectors, other agents, escrow firms, title companies, appraisers, and other specialists. We also assist customers in making sense of the data they come across online or in other places.
Thoughtful discussion about the direction of real estate is always welcome at NAR, and we won’t keep quiet in the face of a misinformation campaign aimed at discrediting both men and women in the industry.
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For the next generation of Americans who want the opportunity that comes with homeownership, realtors throughout our nation will keep providing daily service to our customers.
Tracy Kasper will lead the National Association of REALTORS in 2024 as president. In addition, she has a controlling stake in two additional real estate firms in Idaho and serves as the broker-owner of Berkshire Hathaway HomeServices Silverhawk Realty in the Boise Valley.
Souce : usatoday
