A recent anti-trust lawsuit verdict has dominated news headlines recently like Kim Kardashian anywhere near a camera. A jury ruled that the National Association of Realtors, and some large (read deep-pocketed) real estate brokerages, colluded to overcharge sellers when selling their homes. The plaintiff argued that real estate brokerages are a cartel forcing sellers to pay commissions to buyers' agents to bring a qualified buyer to purchase their home. The verdict will more than likely be appealed but the decision shows a lack of understanding about what drives the healthy real estate market in this country.
Sellers have always been able to decide if they want to pay a commission to an agent representing a buyer. To earn a commission Buyers Agents cultivate and qualify a buyer, and then negotiate on the buyers behalf so that they are successful in the purchase of a property. Forcing a buyer to pay a commission directly to a Buyers Agent will force many less well-financed buyers to forgo the benefit of representation. The system has encouraged a level playing field.
Prices in the US have always had a commission built into the price. Many studies show that people who sell their home themselves or don’t pay an agent commission, net less for a sale. Represented sellers benefit from knowing that they were protected from making any large mistakes that could cost them large amounts of money or come back to haunt them in the future. An unrepresented seller is going to give away more than they want and possibly give away more than they know. In the words of Donald Rumsfeld, “If we know anything, it is that weakness is provocative.”
Real Estate is an industry that has made more millionaires than any other investment available to the average citizen. Part of the reason is the ethics and guidelines followed by the thousands of agents who have chosen to help clients realize their real estate goals in exchange for a fee that is baked into the price. The media would have you believe that the plaintiff rode in on a white steed to save the village poor. Hopefully, they won’t kill the golden goose that has provided a way for the average villager to have their own golden egg.
About Dripping Springs Elite Real Estate Professionals
Dripping Springs Elite is NOT a brokerage. We are a professional organization of top real estate agents in the Dripping Springs area from different brokerages who collaborate and work together to make buying and selling the best we can be for our clients. DS Elite is also dedicated to building up our community and its nonprofits to strengthen the quality of life for all residents. Contact one of our agents today https://drippingspringselite.com/#agents.