Those who attempt to attack the real estate agents’ commission structure cover up their real intentions with misleading claims of consumption. These class action lawyers, and those wrongfully trying to position themselves in the real estate market, look for a payoff when they can confuse enough people with misinformation and obvious omissions.
The reality is that the commission structure provides everyday Americans and small businesses with vital benefits that they would not otherwise get. Here’s what these selfish parties attack.
You are attacking a structure that will allow more people to realize the American dream of owning a home.
The The traditional commission structure, in which the listing broker offers to share his commission with the buyer broker, provides more equity and equality for first-time, low-income and many other homebuyers who otherwise could not afford a home and professional representation.
If buyers had no choice but to pay their realtor an out of pocket commission on top of the price of the home on closing, it would add to their costs and, as a result, freeze many first-time and other buyers from the market.
It would also have a significant impact on those who have been saving for a home, as they would find they face unexpected additional costs. By paying commissions from the sales proceeds, an important cost hurdle is eliminated for buyers – 24 percent of them had to delay buying a home by more than five years in 2020 due to potential debt, and 31 percent were first-time buyers. And unlike the purchase price, the payment to the broker could not be included in the mortgage and financed.
The associated MLS database and MLS (Multiple Listing Service) system are also designed to encourage collaboration between brokers who share all of their information in one place, and to give buyers the best possible and largest possible number of options as efficiently and transparently as possible possible offer.
In return, sellers also get access to the largest possible pool of buyers within a market, as their listing broker works with all of the buyers’ brokers to get the best deal.
They attack the value of commissions that improve the playing field for buyers and pay the everyday Americans for critical service.
A home is the largest, most complex purchase most people make in life. Would you really suggest someone take this trip alone or with inferior service? Of course, you need competent help – and consumers get it.
When internet research into buying a home hit an all-time high of 97 percent in 2020, 9 in 10 people still chose to work with a real estate agent to buy a home. Agents level the playing field for homebuyers, especially those who are first-time and less well-funded consumers, which antagonists conveniently fail to mention.
Real estate agents help people navigate complex, data-intensive and extensive information, details and decisions. It might be easy to take what they do for granted, but it adds up to the benefit of homebuyers.
We talk about coordinating with lenders, providing mortgage rate information, managing bar exams, handling closings, and advising on zoning, ordinances and regulations.
This also includes organizing appraisals and inspections, acting as a professional negotiator, ensuring that clients get the best price and terms, advising on the latest trends or changes in the local housing market and transport, and providing information Navigate to Local, Regional, and State Property Taxes in all required state and federal documents.
All of this is happening in today’s highly competitive market with a record low inventory of homes for sale, and it helps buyers create deals that are different from other than the most cash. All of this for an average gross brokerage of $ 49,700.
Consumers who do not appreciate these services do not have to pay for them. The market already offers alternatives to the traditional broker model. Consumers who choose a broker who offers more comprehensive services receive real added value in return, especially when compared to consumers in overseas markets.
The US consumer’s MLS system experience far surpasses other countries that, with rare exceptions, do not have MLS, and consumers are forced to rely on a few large brokers, creating a more fragmented and less competitive market .
They attack small businesses that would not be able to participate and thrive without the MLS cooperative structure.
The MLS enables small businesses and innovation flourish – all for the benefit of buyers and sellers. Advanced MLS technology enables publishers to access the same information and gives consumers the maximum number of options.
The Cooperative Broker MLS system also allows smaller brokers to compete with larger ones. Within seconds of signing up for an MLS, you have instant access and access to the largest centralized database of residential property listings in your market.
By listing all properties in one place, even the smallest realtors have access to the same offers, information and pools of buyers’ agents as the largest realtors.
Because of MLS, we are at a point in the market where we see unprecedented competition between brokers, especially when it comes to service and commission options. This gives consumers many different options including their preferred customer service approach, brokerage and commission model.
And they attack brokers who go above and beyond to volunteer and give something to their local communities.
National Association of Realtors (NAR) broker members don’t just do one job. They are unusually committed to helping the communities in which they work.
In 2020, 79 percent of broker owners volunteered their time on a monthly basis, and 92 percent donated money. Meanwhile, 82 percent of brokers have made charitable donations, and 91 percent of broker associations ran a fundraiser for their community in 2020.
Over the past 18 years, the Realtors Relief Foundation has raised and distributed more than $ 32 million in relief supplies to victims of more than 80 disasters in 39 states and territories to help more than 13,000 families. Every dollar goes directly to the victims of a disaster, and the NAR covers 100 percent of the administrative costs.
Brokers are also actively promoting home ownership and property rights. NAR’s Housing Opportunity Program offers programs, grants, training, and resources to help brokers and broker associations expand housing availability and ensure adequate rental and home ownership in their communities.
Additionally, NAR has a proud history of working with veterans groups, particularly the VA Home Loan Guarantee Program, to help veterans realize the American dream of home ownership.
So when the big money plaintiff’s lawyers and those wrongfully trying to position themselves in the real estate market attack real estate agents and the commission structure that comes with them, we should really be clear about who and what they are attacking.
You are attacking everyday Americans anchored in our communities across the country and helping their American compatriots achieve the ultimate American dream – owning a home. And let’s be clear why they attack – for a payout.
Charlie Oppler is the President of the National Association of Realtors in Franklin Lakes, New Jersey.