Some more insight into the NAR lawsuit…

It is important to note the lawsuits have been ongoing for years.  (Yes, there are more than one.)  Equally important to note is the judge has not approved the settlement proposed by the National Association of Realtors (NAR).  Everything you have heard and the consequences, good or bad, are conjecture.  The earliest we expect to receive any formal guidance is July.  Meanwhile brokerages and Realtors are trying to navigate the anticipated changes within the existing structure.

For example, as of now, buyers are not able to finance their agent’s commission.  Unless/until lenders can make this possible, it will require buyers to bring more cash to the closing table.  The inflated prices in our area over the past few years have already prevented many people from becoming home buyers.  Regulations for Federal Housing Administration (FHA) and Veterans Affairs (VA) loans will further marginalize those buyers.  The only way for all buyers to eliminate or reduce the cash necessary to close is to ask for a seller subsidy.  With this arrangement, debits and credits resemble the current compensation model on the American Land Title Association (ALTA) statement.  It is simply a new route to the same destination.

One of the many tedious aspects of the NAR lawsuit for Realtors is navigating the laws.  If we charge everyone the same among (i.e. x%), it could be construed as price fixing.  If we do not charge everyone the same amount, it could be considered price discrimination.  With this tightrope, coupled with low barrier of entry to the profession and self-regulation, a suit was inevitable.

I will continue to remain flexible with compensation.  No two sales require the same level of time, energy, and upfront financial investment.  Marketing strategies differ as do our expenses depending on the location and size of the home.  I strive to propose a plan that meets specific needs, reduces the mental and physical load of the process for the client, and adjust compensation accordingly.  More recently I have been exploring flat fee real estate services.  Alignment with Real Broker, LLC has given me the opportunity to explore this model further.

In addition, I now offer á la carte downsizing services.  Until now, and for many reasons, I opted to only offer downsizing services as part of the home sale agreement.  Thanks to many inquiries, and much encouragement and guidance, I can now offer a downsizing service for an hourly fee via my new LLC, RHC Downsizing, LLC.  I suspect this service will look a little different for everyone and will continually be refined.  If you are considering downsizing or want to know more, I’m happy to talk with you and create a solution for your specific needs.  All questions welcome!