This is part 2 of our deep dive into the long-term ramifications of the recent civil court decision in the case of Sitzer Burnett v the National Association of Realtors et al.In part 1 of this series we covered the facts of the case and formulated a basic understanding of the impact this will have on our profession as a whole.In this episode, Laci and I start to unravel some of the complexities of case including exploring why 2 of the major defenants, RE/MAX and Anywhere, chose to settle and avoid going to trial, and why the other 2 major defendants, Keller Williams and Home Services of America may have chosen to fight on.I admit this episode is a little ‘inside baseball’ but the long term ramifications for our profession, both good and potentially not so good, are very real. Change is coming and I want all of our listeners to be ready for it.

SHOW HIGHLIGHTS

Chris discusses the civil lawsuit against the National Association of Realtors (NAR) in Missouri, explaining the varied responses of mega brokerages like Home Services of America and Keller Williams opting for trial, while Remax and Anywhere Real Estate chose to settle.

We explore Remax and other firms' decisions to leave NAR post-lawsuit, considering factors such as restrictive NAR rules, strategic flexibility, and potential new business models that could emerge from this departure.

Laci expresses curiosity about the impact of these departures on franchises and MLSs, especially since MLS typically requires Realtor membership, hinting at significant shifts in the real estate landscape.

Chris delves into the potential effects of NAR's settlement with major real estate companies on the industry, raising concerns about non-NAR members lacking a unified code of ethics and the potential for antitrust issues with zero-dollar co-op fees in MLS participation.

We discuss the impact of recent court rulings on buyer agent commissions and stress the importance of real estate professionals adapting to changes and leveraging them for growth.

Chris and Lacey scrutinize the motives behind mega brokerages' decisions to either settle or go to trial, speculating on their desire to shape public opinion, protect their brand reputation, and address potential legal costs and business uncertainties.

Chris investigates the terms of the settlements between Remax, Anywhere Real Estate, and the plaintiffs, noting that these companies will no longer require their agents to be NAR members, potentially allowing for new operational freedoms.

We raise questions about the future of real estate policy-making and whether large firms might influence state and federal laws, stepping into a role historically occupied by NAR.

Chris discusses the possible antitrust concerns around MLS participation and the implications of allowing zero-dollar co-op fees, considering how this could alter traditional business models in real estate.

Laci reflects on the complex relationship between MLSs, brokers, and agents, particularly in light of new possibilities for commission structures and the role of buyer's agents in the industry.

LINKS

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