Key Takeaways:
– The old way of doing business is over and there are market challenges to conquer and opportunities to prepare for.
– There have been a series of lawsuits following the Sitzer | Burnett trial, including one called the “mother of all commission suits.”
– These lawsuits will continue to cause headaches and sleepless nights for the foreseeable future.
– Homebuyers have also filed a federal antitrust lawsuit against several brokerages.
– A consumer survey shows that 95% of active home shoppers would pay agents directly under certain conditions.
– The emerging market is facing challenges and there are four key realities to expect in the days ahead.
– Agents need action steps to keep their business going in the wake of the Sitzer | Burnett trial.
– Readers are asked to weigh in on the state of the industry and the changes they are seeing and making.
inman:
The verdict is in — the old way of doing business is over. Join us at Inman Connect New York Jan. 23-25, when together we’ll conquer today’s market challenges and prepare for tomorrow’s opportunities. Defy the market and bet big on your future.
Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: Catch up with the “mother of all lawsuits” and all of the other so-called copycats that have followed in the wake of Sitzer | Burnett.
At the end of the Sitzer | Burnett trial, there was a sense of relief, despite the verdict and its attendant financial reward. “That was bad, but at least it’s over.”
Well, buckle up, buttercup, because the hits just keep on coming in the form of a series of new lawsuits beginning just minutes after the end of Sitzer | Burnett. First it was additional brokerages and other states, then rumors about conversations between the DOJ and the plaintiffs’ attorney from Sitzer and then — wait for it — “the mother of all commission suits.”
TROUBLE KEEPING TRACK OF THE LAWSUITS? CLICK HERE
“Litigation on the initial cases moved slowly through the courts for the first few years. But since late October, when a jury sided with homeseller-plaintiffs in one of the highest profile suits, consumers have filed a string of new cases in various different states,” according to Jim Dalrymple’s roundup of the ongoing and newly filed suits.
“The jury verdict, in other words, appears to have unleashed the floodgates for additional antitrust cases. And while some critics have denigrated such cases as ‘copycat lawsuits,’ that does not mean they may not end up having an impact — the recent verdict came in a case that was once called a copycat suit, but is now sending shockwaves through the industry.”
Whatever you call them, this string of lawsuits will continue to cause headaches and sleepless nights for the foreseeable future, starting with the big one that makes Sitzer | Burnett look like a warm-up.
Not content to let homesellers rake in the rewards of class-action lawsuits, last week homebuyers got in on the act with their own suit called Batton 2.
Seven homebuyers, led by Mya Batton, filed a federal antitrust lawsuit Nov. 2 seeking class-action status against Compass, eXp World Holdings, Redfin, Weichert Realtors, United Real Estate, Howard Hanna Real Estate and Douglas Elliman in the U.S. District Court for the Northern District of Illinois Eastern Division.
“Defendants’ unlawful, anticompetitive conduct causes America’s home buyers to pay inflated commissions for broker services they misrepresent as free, to pay inflated prices for the homes they purchase, and to receive reduced quality broker services,” the complaint states, adding later: “Plaintiffs and the other Class members have each incurred at least thousands of dollars in overcharges as a result of Defendants’ conspiracy.”
Exclusive Survey: 95% would pay a buyer agent under right conditions
A new consumer survey undertaken by Inman in partnership with Dig Insights that surveyed 3,000 potential homebuyers offers potentially reassuring answers. Signaling the future appetite for buyer agency agreements, 95 percent of active home shoppers reported they would pay agents directly, or would be open to doing so under certain conditions. You won’t want to miss this Inman Intel exclusive.
The verdict is in: 4 key realities in the emerging market
Beset by the worst market in years, the decay of confidence in the National Association of Realtors (NAR), and, now, the commission ruling, business as usual is in danger of evaporating into the ether. With the coming appeal, writes team leader Carl Medford, it will be some time before the final verdict is reached. However, there are four key realities that you can expect to see in the days ahead.
Distance yourself from disaster. 10 to-dos in the wake of Sitzer
The events of the past few months have revealed many pain points and weaknesses in the housing industry business model around service, leadership, conduct and accountability. With 2024 less than two months away, Rachael Hite writes that agents need action steps to keep their business going, not more arguments about what’s wrong.
After Sitzer | Burnett, what’s next for real estate? Pulse
Pulse is a recurring column where we ask for readers’ takes on varying topics in a weekly survey and report back with our findings. This week, we’re really looking for you to weigh in on the state of the industry as we weather the bombshell commission lawsuits. What changes are you seeing already, and what changes are you making?
Christy Murdock is a freelance writer, coach and consultant and the owner of Writing Real Estate. Connect with Writing Real Estate on Instagram and subscribe to the weekly roundup, The Ketchup, in either newsletter or podcast form.
Source link
Property Chomp's Take:
The old way of doing business is over. The real estate industry is facing a wave of lawsuits that are challenging traditional practices and forcing companies to reevaluate their processes. One of the most notable cases is the Sitzer | Burnett trial, which recently concluded with a verdict in favor of the plaintiffs. However, this is just the beginning, as a series of new lawsuits have emerged in the wake of Sitzer | Burnett.
These copycat lawsuits, as some critics have called them, may have a significant impact on the industry. While they may be dismissed as mere imitations, the recent verdict in the Sitzer | Burnett case has shown that they can send shockwaves through the industry. The floodgates have been opened, and consumers are filing new cases in various states.
One of the latest lawsuits is called Batton 2, filed by seven homebuyers seeking class-action status against several real estate companies including Compass, eXp World Holdings, Redfin, and Douglas Elliman. The lawsuit alleges that these companies engage in unlawful and anticompetitive conduct, resulting in inflated commissions and reduced quality broker services for homebuyers.
Amidst these legal battles, a recent consumer survey conducted by Inman in partnership with Dig Insights offers some potential reassurance. The survey reveals that 95 percent of active home shoppers would be willing to pay agents directly or under certain conditions. This indicates a future appetite for buyer agency agreements, which may help address some of the issues raised in the lawsuits.
As the industry grapples with these lawsuits, there are four key realities that we can expect to see in the days ahead. First, business as usual is in danger of evaporating as the worst market in years, the decay of confidence in the National Association of Realtors (NAR), and the commission ruling all contribute to a changing landscape. Second, the appeals process will prolong the final verdict, leaving uncertainty in the industry for some time. Third, the events of the past few months have exposed pain points and weaknesses in the housing industry's business model, calling for action to address these issues. Finally, agents need to distance themselves from disaster and take action steps to keep their business going.
The industry is at a turning point, and it's crucial that professionals adapt to these new challenges. The Inman Connect New York event, taking place from January 23-25, offers an opportunity to conquer market challenges and prepare for future opportunities. It's time to defy the market and bet big on the future.
