Last week the National Association of Realtors announced a settlement agreement in the Sitzer Burnett case that would take effect in July. For those who missed the declarations in the media that this outcome will render transacting real estate almost free, protect consumers, and make homeownership affordable once again, the settlement does none of that.
Here’s the truth.
The settlement in no way establishes a standard or limitation on Realtors for what they may charge, nor services they elect to deliver. Those fees have always been negotiable and there has never been any collective bargaining. In every market, there is a wide variety of fees, just as there are levels of marketing, service and competence.
There has never been an obligation for a seller to pay buyer agent compensation, yet it is a practice that’s worked well. A past rule requiring an offer of some amount of compensation was a rule of display on a Realtor-owned MLS, yet it could have been as low as $1. That limitation was removed and today the MLS accepts all listings, regardless of buyer agent consideration.
Related video: Are retirees scamming millennials out of the housing market? (FOX 11 Los Angeles)
So what do you think about this?
Video Player is loading.
FOX 11 Los Angeles
Are retirees scamming millennials out of the housing market?
The mandate restricts properties with an offer of buyer agent compensation from displaying on association-owned MLS, yet the practice can’t be restricted in any other form of marketing. Sellers may still elect to pay buyer agent compensation to differentiate their properties. While sellers can elect not to pay buyer agent compensation, that doesn’t mean they will avoid the economics as buyers may write into any offer a contingency requiring the seller to cover the cost or request other concessions.
Values in real estate are determined by supply and demand. Fees in a real estate transaction represent additional expenses, yet these include not only commissions but many other related charges. Should real estate commissions be reduced by 1% because of compression, that $500,000 home will now cost $495,000. Not only is the potential impact marginal at best, but do you think the seller now believes the home is worth less and will happily give the difference to the buyer? The reason home ownership is increasingly less affordable is that homes in our market have significantly risen in value these last few years.
For readers who have purchased homes, it is more than likely you were happy to have the seller compensate your agent so you didn’t have to. For buyers who had to provide the down payment and closing expenses, having the commission paid by the seller and incorporated in the home price allowed them to finance the amount over time instead of coming up with additional cash at closing.
The settlement is huge, yet when one divides the amount by the number of potentially qualifying consumers it works out to about $10 per person. Those benefiting are the attorneys who have submitted a request to the court for over $80 million in fees.
6. Consumer Restitution
Despite the large total sum of the settlement, the actual amount received by individual consumers may be minimal.
"The settlement is huge, yet when one divides the amount by the number of potentially qualifying consumers it works out to about $10 per person."
The significant portion of the settlement going towards legal fees further diminishes the direct benefit to consumers, challenging the notion that this settlement represents a significant victory for those who have felt wronged by past practices.
As a real estate professional for over 40 years, I have had the privilege of working with Realtors who represent the public in what is likely their largest investment. What I have witnessed are the countless situations where an agent has gone above and beyond to help buyers realize their dreams and sellers maximize their returns, often serving in ways far beyond their job description.
Everyone would like to see costs lowered yet I do not see the Department of Justice going after attorneys or other professions we wish would charge less. I always believed in the concept of free enterprise. If one is willing to assume the risk of running a business, one may do so at rates that allow a reasonable return for the capital investment and time. As my dad would say during his 60-year career, you wake up every day unemployed and have to find a job. Then you spend out of pocket and don’t make a cent unless you achieve someone else’s goals.
The brokerage community has always adapted to best represent buyers and sellers whenever there is a shift in the environment. And we will again. Yet when an industry I love is singled out and the justification is for false reasons, I will not be quiet.
Budge Huskey is chief executive officer of Premier Sotheby’s International Realty.
This article originally appeared on Sarasota Herald-Tribune: Real estate pro says don't believe National Association of Realtors settlement myths
Shorten your learning curve, make the most of your resources, an maximize your impact both online and off.
Any successful small business website has one commonality: a well thought through strategy. With a plan in place, you’re teed off for success when it comes to supporting lead generation goals. Your website plan should answer the following ten questions:
After you have developed the overall goals and a blueprint with tips on creating a website for your business, the next step is making it easy for website visitors to find content. To do this, make sure your page hierarchy is clear.
Social Media Today suggests bucketing your content by theme and importance. Try physically drawing a plan as you create a high-level outline. Most people freeze up at this point so it’s important to visualize your website structure!
Simple design and text are essential to an effective small business website. An overly complicated website doesn’t convert. Too many page elements lead to website visitor confusion.
So, long story short, uncluttered visuals and text have the most significant impact on your audience. And, while we’re on the subject of simplicity, keeping your color scheme minimal is key, too. Two to three colors is all you need to make an impact.
Be pragmatic in your color selection and fortify the use of white space within your small business website design.
“This is not the time to show off your design acumen, with lots of distracting sounds and lights on the site and every icon known to web-kind,” says Nationwide.
As a small business, you don’t need to be coy, Roy. Clearly state what you want people to do.
Use phrases like, “Subscribe to our newsletter,” “Book your reservation now” or “Email us for a free quote today.” After you identify your page structure, sketch out your content sections and maintain well-defined CTAs, then layer in conversion opportunities like pop-ups, alert bars, and more! Your lead forms should be prominent and enticing as well.
Did you know 90% of small business websites don’t keep the smaller devices’ screen size in mind when creating websites? And around 30% of all website traffic is mobile.
Before publishing anything on the web, always consider desktop and mobile devices. “Having a site that isn’t mobile optimized can drive away customers, hurt your SEO and look unprofessional,” notes Small Business Trends writer Ann Pilon.
So there you have it… we hope these 5 tips for building an effective business website were consumable and prompt action as you embark on creating your small business website.
Madeline Carpenter is the founder of Market ‘Til You Make It. When she’s not serving her clients, she geeks out on board games, cider, and challenging her friends to top her awesome karaoke skills. She calls Bloomington, Minnesota home.
©2023 Local Expert Agent | Privacy Policy
