BREAKING NEWS: Judge Andrea R. Wood has ruled that a pending lawsuit challenging the way real estate commissions are paid should be upgraded to a class action lawsuit, substantially expanding the scope and potentially dramatically impacting the way real estate commissions are paid.
Read the full article on Real Estate News here. Plaintiffs in the Moehrl vs. the National Association of Realtors, et al., (originally filed in 2019) allege that requiring home sellers to pay commissions to buyers brokers is a violation of federal anti-trust laws. Historically, when a listing agent charges a homeowner 5% (for example) to list and sell their home, part of that 5% (usually half) goes towards paying the buyers broker. The plaintiffs in this case say they were damaged because they paid a cost — the buyer's agent commission — that would have been paid by homebuyers in a competitive market. Judge Wood ruled today that in addition to the handful of people who originally sued in 2019, the outcome of the lawsuit will be expanded and cover home sellers "who paid a commission between March 6, 2015, and December 31, 2020" to specified companies and MLSs as well as "current and future" sellers engaged with those entities. That significantly broadens the scope to a pool of home sellers that sold their homes over a 5 year period and paid the buyers broker commission. Additionally, she expanded the language to include "current and future" sellers. This strikes a blow to the defendants, which include the NAR, many of the major real estate brokerages and major MLSs, virtually insuring this case will head to trial, according to an industry insider. At FSBO Sherpa, we have always contended that the current model of how real estate commissions are paid is broken. This ruling unquestionably supports our beliefs. Why should home sellers be asked (REQUIRED actually!) to pay the fee of their buyers' agent? Maybe that buyers agent has spent the last 6 months working with these buyers, driving them around to look at several houses, putting in several offers for their buyers, only to not have those offers accepted. Why should YOU, the home seller, have to pay for that agents last six months of work??? The buyers should pay their own agent for the work they perform. We are keeping our eyes closely on this case because it could have dramatic implications on how real estate commissions are paid. If you agree that the archaic way real estate commissions are paid is blatantly unfair to home sellers (and buyers alike), For Sale By Owner may be the right option for you. And if you want to list and sell your FSBO like a pro, please contact us at FSBO Sherpa.
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We recently came across a great website and resource for any For Sale By Owners and wanted to share it with you. DearMonty.com should be immediately saved as a favorite in every FSBOs web browser! In fact, here is a link to search results on DearMonty.com for articles related specifically to For Sale By Owner: For Sale By Owner (FSBO) Articles on DearMonty.com. Skip the first four results. Those are paid advertisement placements (Hey, Monty's got to pay the bills, too! Cut him some slack, ok?). Start with the article entitled, "Does for-sale-by-owner (FSBO) work?"
Monty consistently gives great, no-nonsense advice and spending some quality time perusing his website is only going to make you a better FSBO! I also bought Monty's book "House Money" and I am now considering it REQUIRED READING for any of our For Sale By Owner clients! I bought the Kindle version and for $5, you can not make a better investment in your home selling (and buying) education. Get your copy now! Knowledge is power and this book is full of knowledge. I've never met the man, but I can tell Richard Montgomery (aka Monty) is a man after my own heart. Like me, it seems like after working many years in the industry, Monty saw that the current real estate system is flawed and not as consumer-friendly as it could and should be. His no-nonsense approach really resonates with us here at FSBO Sherpa, and I can not recommend diving into his website and book enough! (This is not a paid endorsement. These are not affiliate links. I get nothing from mentioning Monty except the hope that we get to work with better educated clients. Because a better educated client is the best client!) When you're ready to list and sell your home professionally ON YOUR OWN, and pocket all that extra hard-earned equity by NOT paying expensive real estate commissions, please contact us. Empowering homeowners and saving them tens of thousands of dollars is what makes us tick! I get Google alerts everyday for the word "FSBO". Any time an article is published online containing "FSBO", Google tells me about it. Today's find was eye-opening! Not so much the article itself, but the comment section. 1,045 comments and counting at the time of posting! I haven't read them all (because... you know, life/work, etc...) but the general consensus seems to be that Canadians are NOT happy with the current way the real estate market is working.
The article is definitely worth a read (check it out here), but the comments are also worth browsing! The readers make some good points. What other industry has enjoyed a pay raise equivalent with the rising prices of real estate? Real estate attorneys, appraisers, home inspectors, professional photographers all provide the services a real estate agent provides, but NOT BASED AS A PERCENTAGE OF YOUR SALES PRICE! There is a strong argument to be made that the commission-based model of paying real estate agents is completely outdated and flawed. Hourly rates or salary might make better sense for paying real estate agents, but good luck finding that (I know, Redfin is addressing this issue, but they are the exception, not the norm). Browsing through the feedback in the comment section of this article just got me fired up about what FSBO Sherpa offers to homeowners! If you feel that paying 5% (or more) of your sales price to a real estate agent to list your house for you is simply not fair, please contact us! We agree with you 100% and would love to show you a different way to sell your home. |
AuthorField Notes from the FSBO Sherpa. Helping guide motivated, DIY homeowners through the For Sale By Owner journey, one real estate transaction at a time. Archives
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