This is my second Call to Action, and our livelihoods and clients will soon be victims of lawfare. Our current president Kevin Sears at NAR stated that a $5.4 billion bond was requested to appeal this case, in which he believed they could have won. However, posting such a bond would have bankrupted our association. This is a direct violation of the Eighth Amendment of the U.S. Constitution, which reads “Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted.”
In addition, the Fifth Amendment says to the federal government that no one shall be "deprived of life, liberty or property without due process of law." Convicting REALTORS® in the court of public opinion has certainly deprived us of any due process, and this settlement will certainly deprive veterans and people with less cash of property. The most affected, 1.5 million REALTORS® and countless clients have no voice, but that is about to change...
We cannot let a few bad apples within our ranks be our legacy. I have never been more offended by recent headlines in my entire life. I have worked too hard to maintain a good reputation with my clients, as I know most of my colleagues have as well. Our voice needs to be heard before a judge approves this settlement. Otherwise, we will fall victim to Doug R Miller Attorney at Law, and his dystopian future. In Doug's interview post settlement, he has stated he is monitoring our next move. Fox Business Real Estate Contributor Catrina Campins, states it will be chaos. I believe her.
Claims that REALTORS® are steering clients towards higher commission listings is absurd:
Inman Group was purchased in 2021 by Beringer Capital, a private equity firm. The real estate market is driven by apps that are controlled by buyers. If a listing is not included in the search, we have set up for them in the MLS, you can best believe they send it to us. I show my clients everything they want to see, even those offering zero commission. We don't make decisions, our clients do. Unfortunately, most times my clients do not have the cash to pay our commission out of pocket, so they elect to keep looking or they pay the fee. It is not our fault these listings remain on the market longer and working for free is not an option. Most buyers want to be represented, this was clear back in 1990 and it is clear to this day.
As fiduciaries we represent our clients’ best interests. Our main objective is helping our clients navigate this process in accordance with state a federal law. If we encounter a legal matter in a contract, we put our clients in touch with legal professionals authorized to give such advice. The goal is to ensure a smooth transaction in assisting our clients with the sale or purchase of a home. Let’s do whatever we can to keep it this way!
Sellers and buyers should have representation, with a REALTOR® or lawyer at $500 an hour if they so choose. All states will soon have "Exclusive Right to Represent Agreements." After this document is signed, it gives us the ability to negotiate on our client’s behalf, and allows us to give them our substantial opinion on a property. The solution is simple, this becomes a box checked in the contract designating commissions to a real estate brokerage, law firm or unrepresented buyer. We are happy to compete against Doug R Miller Attorney at Law or anyone who believes in his version of dystopian real estate, but most aspects of this settlement only set us up for future lawsuits. We know that Doug, his lawyers guild and their ideas will end up in the small bus where they belong.
Doug R Miller Attorney at Law comment:
"It's a bribe, … you're paying someone to negotiate against you. There's no good reason for sellers to pay buyer-brokers"
Doug certainly advocates for sellers to not pay a buyers commission at all. I mean, who would pay anyone to negotiate against their own interests? Clearly Doug has no clue what he his talking about, but what would that produce? Unrepresented buyers.
Unrepresented buyers are more at risk to legal pitfalls and hidden dangers sometimes found in homes, which is the biggest legal ramification Doug's ridiculous statements would produce. That is because buyers may not have the cash to pay the buyer's agent commission or lawyers hourly rate, and commissions cannot be financed in a home loan. Veterans cannot be forced to pay commissions and be further victim to a system that continuously works against them. Lastly, working with unrepresented buyers as listing agents will certainly produce more lawsuits. Maybe Doug R Miller Attorney at Law has created a conflict of interest?
Only half the truth...
Residential real estate buyers do not have representation overseas, everyone works for the seller. Consumers wanted to have representation in the largest purchase they have ever made here in the U.S. There were too many lawsuits from unrepresented buyers prior to 1990. Our system has eliminated the vast majority of those lawsuits leaving the real estate lawyers guild out of work. Clearly, they have created a conflict of interest in this case. Only one agent getting paid overseas, and two over here. Simple math provides a reasonable explanation for this discrepancy falsely portraited in the media. Full Truth
Not having commission information listed in the MLS under this dystopian version of real estate, will further complicate understanding if buyers are qualified to purchase a particular property. Our loan officers already have to deal with taxes, interest rates, HOA and condo fees. Not having this information will digress the industry more than 30 years. It will push the industry completely underground and will benefit nobody, but AI and private equity firms to move in. We know where the real conflicts of interest are in this industry like when Zillow bought Dotloop.
The free market has produced cheaper options like FSBO, Red Fin or the infamous Rebate Realtor. Buyers can hire a lawyer to help them buy a property, but they typically chose us in various capacities. We understand our value and the majority of our clients do as well. We can sell our value and that is why we have gained our clients' trust. Just as there are options in the restaurant industry ranging from fast-food to fine-dining, REALTORS® offer a wide range of options depending who you work with. You get what you pay for, but we are flexible depending on our clients' needs.
This ball falls in our court, as the hands of our brokers and associations have been tied with settlement agreements. However, we are not bound by those same restraints since we are 1099. Speak now or forever hold your peace.
Otherwise, dust off your pagers and fax machines after you get them out of storage…
I have turned my personal website into a sign-up sheet to keep track of REALTORS® and clients (past, present and future) whom agree with this Call to Action.
Sincerely,
Roy Remick
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