Workshop Tuesday 6 PM- NO Money? NO Problem!

Blog post

Workshop: "No Money? No Problem!

In the world of real estate, the traditional practices have been perceived to  often revolve around the needs and policies of brokers and agents. However, a paradigm shift is underway towards a consumer-centric approach. This change is necessary to ensure that both sellers and buyers are represented in a manner that prioritizes their needs and interests. Welcome to the workshop on "No Money? No Problem!"  Tuesday night at 6 pm, where we explore this exciting transformation in the real estate industry.

The workshop will illustrate  a scenario where the seller's agent meets with the seller to discuss compensation options for both the seller-broker and the buyer-broker.  The seller’s agent is prepared for questions like “Will the buyers still come see my house if I don’t offer to pay a buyer’s agent?”, careful not to steer or arouse fear. The agent understands the concerns of the sellers and prepares them  for the various ways a buyer-broker may seek compensation for bringing a ready, willing, and able buyer. This empowers sellers to make informed decisions without the fear of their property being overlooked if they choose not to offer ‘the going rate’.

Similarly, the buyer's agent plays a crucial role in this consumer-centric real estate world. They interview and communicate the value of buyer agency to potential buyers. An exclusive buyer agency agreement is used, accompanied by a worksheet that describes different compensation scenarios for the buyer-broker's representation.

This consumer-centric approach acknowledges that as fiduciaries, real estate professionals are in a position of trust. The needs and best interests of the consumers take precedence over everything else. By placing the consumer at the center of the transaction, we strive to serve them better and foster trust and transparency in the process.

The Federal Trade Commission (FTC) and the Department of Justice (DOJ) have raised concerns about certain real estate practices that have revolved around broker-centric policies. These concerns have led to ongoing lawsuits involving the National Association of REALTORS® (NAR) regarding potential antitrust issues. The FTC and DOJ have been questioning these practices for decades, leading some to refer to it as "The Hundred Year War." (Rob Hahn)

I thought most people knew about these all-important cases that are making their way through the federal courts. Apparently, only about half of the REALTORS had even heard about them, and those half had not really paid a lot of attention to these cases." Rob Hahn

Change is never easy, but it is essential if we want to continue offering comprehensive representation to both sellers and buyers. One significant development in this regard is the imminent policy change by MLS PIN, a prominent Massachusetts-based multiple listing service. This change, known as the buyer-broker commission rule, is a result of a settlement agreement from the case  pending final court approval.

UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF MASSACHUSETTS 

JENNIFER NOSALEK, RANDY  

HIRSCHORN, and TRACEY HIRSCHORN,  

individually and on behalf of all others  

similarly situated, 

Plaintiffs, 

MLS PROPERTY INFORMATION  

NETWORK, INC., ANYWHERE REAL  

ESTATE INC. (F/K/A REALOGY  

HOLDINGS CORP.), CENTURY 21 REAL  

ESTATE LLC, COLDWELL BANKER  REAL ESTATE LLC, SOTHEBY’S  INTERNATIONAL REALTY AFFILIATES  LLC, BETTER HOMES AND GARDENS  REAL ESTATE LLC, ERA FRANCHISE  SYSTEMS LLC, HOMESERVICES OF  AMERICA, INC., BHH AFFILIATES, LLC,  HSF AFFILIATES, LLC, RE/MAX LLC,  POLZLER & SCHNEIDER HOLDINGS  CORPORATION, INTEGRA  

ENTERPRISES CORPORATION, RE/MAX  OF NEW ENGLAND, INC., RE/MAX  INTEGRATED REGIONS, LLC, AND  KELLER WILLIAMS REALTY, INC., 

Defendants. 

Case No. 1:20-cv-12244-PBS Judge Patti B. Saris 

Under the new policy, the mandatory posting of a commission to the buyer-broker from the seller-broker on MLS PIN will no longer be required. This change marks a significant departure from the traditional practices and paves the way for a more flexible and consumer-centric approach.

During the workshop, we delve into the various other changes that are taking place to align the real estate industry with the needs of consumers. We discuss how these changes will impact both sellers and buyers and how real estate professionals can adapt to thrive in this new landscape.

The transition to a consumer-centric real estate industry may present challenges, but it is a necessary step towards a fair and transparent marketplace. By putting the needs of consumers first, we can build stronger relationships, restore trust, and ensure that everyone involved in a real estate transaction benefits from a more equitable process.

In conclusion, the workshop on "No Money? No Problem!" aims to educate and empower real estate professionals about the ongoing shift towards a consumer-centric approach. By embracing these changes, we can create a real estate industry that serves the best interests of both sellers and buyers, fostering trust and transparency at every step of the transaction.