The real estate industry could turn upside down soon, says star broker Jason Oppenheim.
Oppenheim – leads a team of attractive agents at Netflix (NFLX) Reality Series “Selling Sunset” – We recently sat down with Yahoo Finance to discuss the current state of the US real estate market. In an extensive conversation, he warned that the industry’s fee structure could soon change forever.
“Specifically for real estate agents, there are several lawsuits underway with federal regulators, and at worst it could be Armageddon for real estate agents,” he said. , we might see a separate commission structure, where the seller is basically paying the buyer and the agency commission.”
Two home sellers filed lawsuits in 2019 [Sitzer et al v. National Association of Realtors (NAR)]which claims to violate several NAR rules sherman antitrust law an 1890 law prohibiting activities that restrict interstate commerce and competition.
One of the NAR rules in question requires listing brokers to provide a commission to buyer brokers for listing properties. The lawsuit alleges that the practice increases costs for sellers and is therefore anti-competitive.
Traditionally, two agents are required to sell a home: the buyer’s agent and the seller’s agent. However, if the NAR were to lose the lawsuit, the real estate industry would effectively leave Byers his agent out of the equation. This means the number of real estate agents in the United States (currently 1.5 million, according to the NAR), which can drop sharply.
“We could see hundreds of thousands of real estate agents quit their jobs and major brokers go out of business,” said Oppenheim. standing.”
Oppenheim said there is likely to be a major overhaul of the real estate market, although there is hope for a settlement with regulators or an appeals process. He added that the U.S. could eventually turn to a model with lower total fees, as is the case in Australia.
“I think there are too many realtors anyway, so I don’t think that’s part of the problem.” “I think it’s called dual agency,” he said. It’s like going to court, one lawyer representing both parties.”
Oppenheim added that this could create a situation where agents have fiduciary responsibilities to one side.
2022, Federal Court control private real estate listing services may sue the NAR for anti-competitive practices. Earlier this month, the U.S. Supreme Court was denied attempts by industry groups to challenge the ruling.
“It’s something that’s not talked about much, and maybe even harder in 2024, but it’s coming,” Oppenheim said.
by Dylan Croll (reporter and researcher)