The recent class-action antitrust lawsuit filed against the National Association of Realtors could signify the beginning of flat rate real estate commissions and the end of the 6% standard commission that buyers and sellers have been conditioned to expect to pay when they buy and sell properties.
A recently filed class-action antitrust suit against the National Association of Realtors, among other major real estate players, could spell a serious shake-up for the industry. If the claim’s plaintiffs win out? It may change the face of buying and selling real estate as we know it.
In Moerhl v National Association Realtors (NAR), home sellers from across the nation are claiming that NAR’s compensation policies—which require all member brokers demand blanket, non-negotiable buyer-side commission fees when listing a home on a Multiple Listing Service—is a violation of antitrust law. Realogy Holdings, HomeServices of America, RE/MAX and Keller Williams are also named in the suit.
Though Minnesota home seller Christopher Moehrl originated the claim, sellers who listed their properties on 21 different Multiple Listing Services across the country are also plaintiffs on the antitrust suit. These MLSs cover Baltimore, Philadelphia, Washington, D.C., Detroit, Cleveland, Milwaukee, Houston, Dallas, Las Vegas and many of the nation’s largest housing markets.
The suit’s attorneys are currently soliciting eligible class action members—those who have sold a home on a named MLS in the last five years—at HBSSlaw.com.
“Did you sell your home within the last five years?” the page asks. “You likely overpaid by thousands of dollars in real-estate broker commission. You could be entitled to reimbursement for price-fixing.” – Lawsuit Alleges Collusion, Inflated Commissions Among Realtors – Written by Aly J. Yale – https://www.forbes.com/sites/alyyale/2019/03/19/lawsuit-alleges-collusion-inflated-commissions-among-realtors/#7e0b8a0a2a44
The Tobacco Master Settlement Agreement (MSA) was entered in November 1998, originally between the four largest United States tobacco companies (Philip Morris Inc., R. J. Reynolds, Brown & Williamson and Lorillard – the “original participating manufacturers”, referred to as the “Majors”) and the attorneys general of 46 states.
In the MSA, the original participating manufacturers (OPM) agreed to pay a minimum of $206 billion over the first 25 years of the agreement.
My main man, Sam Adams was born on the glorious day of September 27, 1722 in the city of Boston, Massachusetts.
NOTABLE QUOTABLE – “No one is really going to help you or give you direction. In fact, the odds are against you.” – Robert Greene (The best-selling author of Mastery and The 48 Law of Power)
NOTABLE QUOTABLE – “All jackassery needs to become culturally acceptable is for people with a sound mind to say nothing.” – Clay Clark
If you’ve ever bought a house or sold a house, you might have thought to yourself, well, why am I paying a 6% commission to sell my house? Why not five or seven or four or eight? Who decided that a 6% commission was fair? Why do so many real estate agents say that? What really the pros, the professionals, they charge 6% could it be a result of cumulative brainwashing? Could it be jackass? Uri, could it be done right? Could it be right? Maybe. Maybe it is right. Maybe it’s not right, but why does every single real estate agent charge the same commission? And why are you paying the same percentage, uh, real estate commission? No matter how large your house is, if you have a small house or a large house, why are you still paying 6%? Think about that. If you’re selling $1 million house, that’s a lot of money. If you’re selling $100,000 house, that’s a lot of money. Well, what if I told you that a recently filed class action lawsuit against the National Association of Realtors might change everything? In fact the same wall from the same people that sued big tobacco, the same law firm that sued big tobacco is actually revolt right now. They’re involved right now as we speak, and a class action lawsuit against the National Association of Realtors and do you know what they’re doing? They’re trying to say it’s unethical for every real estate agent in America to collude in to say that it is the right thing to do to sell your house for 6% commission. I for one think it’s not the move. I think it’s time for a revolution. I think it’s ridiculous to every single real estate agent is going to charge you 6% of the total value of your home, 6% of your equity to sell your house. What in the world,
Andrew, I am excited to talk to you in the thrive nation on it. Yet another edition of the thrive time show on your radio and podcast download my friend and my understanding is you just talked to a man about to helping him to grow his pet store. So speaking of pet stores in Wichita, uh, I think that the, the, the pet store is located on some type of property, uh, a k a real estate. Maybe, maybe the owner of the business rents the space. Maybe he owns the space, but either way, real estate is definitely involved in that pet store. No. Andrew, I want to ask you this. Are you aware that a recently filed class action antitrust lawsuit against the National Association of Realtors, realtors may end the 6% real estate fee as we know it. Are you aware of this? Oh Man. A educate me about it. I want to hear about this. Well, you have, you bought a house, right? I have bought a house. When you bought a house, did you have to pay a 6% real estate fee to the real estate agents involved?
Yes, I did. Did it occur to you, why am I paying this fee? Did you ever have that question that thought I did? I did. Question. It did. Seriously did, who did, who did you ask the agent? Did you ask yourself, did you go online? Who did you ask? Um, I, uh, talked to our mortgage lender a little bit about it and Steve Currington, great guy, talked to him, asked him about that. Uh, did a little bit of research online. Still the really don’t know why. Um, were you, how old were you when the big tobacco lawsuit was finally settled? Do you remember the Big Tobacco lawsuit? Uh, what year was that? Well, Andrew, I just happened to be prepared. You see the tobacco master settlement agreement, the MSA was entered into in November of 1998 originally between the four largest tobacco manufacturers and the attorney general of 46 states within this great United States of America.
Now let me, let me just continue to, to blow your mind here real quick. This lawsuit when it was settled. Uh, the agreement was made between the four largest tobacco manufacturers and the attorney generals of these 46 states that the tobacco companies, the big tobacco companies would pay out a minimum of $206 billion over the first 25 years of the agreement. Okay, so you were not yet born where you were barely born at Dai was probably barely born. All the point is, okay, the average American who is smoking, I think we knew it wasn’t good for us to us to see a suck in smoke, but for some reason the average person said, I don’t know what it was. I thought it was healthy for me that, that, that the Marlboro man, he was the epitome of health in my mind, in that the Campbell, he got me.
I mean, I remember sucking on a tailpipe one time as a kid and thinking to myself, that didn’t go very well. I know that everybody that I’ve had, I’ve had who smoked a lot looks terrible, but I didn’t know. And so because in our country, oh, we have this idea that you can become a victim if you want. I was able to sue big tobacco and win because they manipulated me with the fricking Campbell and the Marlboro man. I don’t know what it was. I just started smoking with sexy. And so they were able to file a lawsuit. It’s called a class action lawsuit. So many people joined together and said, we’re all going to sue big tobacco to right this wrong and to get a huge settlement. So people that now have a stoma and their neck stop talking about my stomach. I had no idea that smoking was the pad and it looks so cool.
And the only reason I smoke, well I gamble now is I want to just give back to the kits because I know that a lot of the cent tax goes to the kids. I love kids so much, Huh? Nah, those people want to settlement. And also they want a deal where the entire cigarette packet as we know it now changed. Andrew was the last time you bought a pack, a pack of cigarettes. Uh, it’s been a long time. Never really done it. So, you know Andrew, I’ve been trying to start that’ll really, it’s just hard cause there’s a lot of coughing. There’s yeah. Anyway. Hey drew, I feel like you are missing out on the benefits of smoking. So I devoted a lot of time to writing a song about um, something I, I, I’ve really become passionate about and that is smoking your way to thin. Now it is true that you might die in the process of implementing this new diet plan, but smoke your way to thin. Really. I, and I know you’re going to smell bad and I know you’re going to be outside when it’s cold smoking. I know there’s a lot of drawbacks on the surface, but at the end of the day, I think smoking your way to thin may just catch on.
I’ll tell you what, why don’t you guys Qm, you know, character staring my headphones, therapy, smoke my weed turns. Hey Mateo. Oh my God, I can’t hurt anything. Getting hairier sneakers for narrow my headphones, her smoke my wage turn up and running some snare, my headphones. I came here, I used to weigh a lot. Now I smoke a lot. Kind of sloped my way to play in
who cut the bait and who changed the key that we’re not going to be honest with ourselves. We’re never going to smoke our way to things. It drew. I think that smoking turns out to be a really, really bad idea. But when you went, when you look at the packaging, it’s a big label on there now in the label, just basically Warren shoe. Well, the same people that the same law firm that sued big tobacco and one has now moved on to file a class action lawsuit against the National Association of Realtors. Oh Man, this is in Forbes. I’m putting a link on the show notes. So what’s happening now is many people are joining together saying, why in the world do we have to pay 6% with every different company in an industry all agrees on a price that’s called price fixing or collusion. The actual definition of collusion is the secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others.
So think about that. Today. I mean you out there want to sell your house, right? You want to sell your house, so let’s just say you want to sell it by owner. You put your house on the market for sale by owner. Think about that view right there. If you’re listening right now and you want to sell your house for sale by owner, you what? What has to be done? What you got to get professional photography? Probably if you want to sell your house quickly, you have that. You need to have professional video auger fee, correct? I mean maybe you disagree. I would recommend professional photo, professional video and I, what else? Maybe a three d tour or if the house is big enough but for for sure, professional photo and video and a flyer and this. These are the two reasons why people will buy your house.
There are two ways to market your house. Two ways. Only two ways that you can market your house. One is signs and wonders. My friend. If you put a for sale sign in your front lawn, how many of you out there right now have sold your house? Because somebody seriously saw your sign drove by and called you probably a lot. Right? Because people decide, you know what, I’m going to live in midtown. I want to live in a nice part of midtown. That’s where I want to live. I live in Tulsa. I want to live in the midtown area. I want to be part of that. Boom. Great. Somebody says, I want to live in broken arrow. That is great. You wanna live in broken arrow. That’s exciting. You want to live there? Okay, great. But you’ve already decided where you want to live previous to finding the house, right?
So you and your fiance, you and your wife, you and your husband, you and your man, friend, whatever, you drive around on the weekend. Yes, you do. You drive around on the weekend and as you’re driving around, you’re looking for properties that are for sale in the part of town that you want to live. Why? Why? I don’t know why. Maybe you’ve decided that’s where you want to raise a family. That’s where you want to be. I don’t know why, but I can tell you that most people out there, they drive around the part of town or the price, the part of the city where they want to live and they look for signs and they wonder, I wonder what that has caused. And the second way that most buyers, uh, determine what houses they want to buy as they, they go online and they do a Google search for the part of town they want to live in.
Some people start searching on Zillow. Some people start searching on other real estate related websites. But many of the websites that are out there, I have made a rule where you can’t put your house on those search engines unless your house is officially listed with a real estate agent. So a real estate agent is going to charge you what percent, how much money is a real estate agent going to charge you to put the house on mls and to put a sign in the lawn because you and I know if I see a Facebook post today and you see a Facebook post and I see an Instagram post and you see a youtube post, we’re not going to to to decide to live in a different part of town just because we saw a compelling youtube post or a Facebook post. No, we have already decided the vast majority of the time where we’re going to want to live.
Therefore we’re just looking for listings, Aka properties that are available in the area of town that we want to live in, which is why the major lawsuit is happening right now in this major lawsuit is being filed by the same exact people that filed the big tobacco lawsuit, the same lawyers, and what they’re saying is that there needs to be a shakeup in industry. Will, will, will happen. I don’t know, but I do agree as a consumer, I agree. I mean, if you’ve sold your house in the past five years and you’ve sold your house using a realtor, thinking about how much money you paid, think about this for a second. Let’s just say that the realtor, I would say let’s, let’s start big and go small. Let’s say that the Realtor, I’m sold your house and your house was a $1 million house. Oh $1 million house. And let’s just say that, you know, yeah, you didn’t have to re, let’s just say you had two realtors involved. So you paid 3% commission to the what? The buyer and 3% commission to the WHO? The seller for a total of, what’s that number? 6%
So you paid 6% commission to the person who represented that your house, who listed your house, who put your house on the multi listing system, and another 3% to the person who brought the buyer. Correct. So for a total of 6%. So if you sold your house for a total of $1 million, that means you paid a $30,000 commission for someone to put a sign in the lawn and to take photos and videos and maybe in extreme cases, a three d tour of the property. Maybe they made a flyer. I mean 30,000 seems like a lot of money to me as a consumer to pay to sell by $1 million house. No, no, no, but you probably had a realtor on both sides. You probably had a real, that helps to bring the buyer and our realtor or they’re brought to the seller and so therefore you paid $60,000 in commission to sell your $1 million house.
Does that seem reasonable? I don’t think it does. Let’s dial it down a little bit though. Let’s get more practical. Let’s say that you sold a $700,000 house and you paid a 6% commission, 3% to the buyer’s real estate agent, and 3% for the seller’s real estate agent. That means you paid $42,000 in commissions. Why? Who decided? That was a fair deal. What about a $500,000 property? What you paid $30,000 in commissions? You paid 3% to the buyer’s agent and 3% to the seller’s agent. Well, let’s dial it back again. Let’s go to 300,000 if you paid $300,000 for to buy your house, $300,000 to buy your house and you sold it, that means that now you just paid 3% to the buyer’s agent, 3% for the seller’s agent, you just paid $18,000 $8,000 why are you paying the same 6% no matter how big the house is?
Who decided this rule? Where did it come from? Well, my friends since the 1950s the good old 1950s the National Association of Realtors has used a suggested commission rate for all of the real estate agents. They suggest that you pay around 6% of a home selling price to the real estate agent who helps represent the buyer and the real estate agent who represents the seller. Well as of 2016 the rate was now getting closer to 5% which, which provides a little bit of, you know, uh, relief. A little bit of a comfort for people like you who are trying to sell your house or trying to buy a house. But why in the world as a real estate agent’s commission come out to 6%? Why do you have to pay 6% to a real estate agent? What do you even get for that? What does a real estate agent’s commission actually paid for?
Well, my friend, whether you’re selling a on your house, a lake property piece of land real estate agents pitched the idea that you’re paying for the big four one, you’re paying for someone to help you with the pricing of your home. Well, my friend, unless you were born on a different planet, you should be able to determine the price to list your home. Why? Because we’re in the information age. We’re not in the dark ages. Anybody out there who has access access to a computer, which I believe might include, you should be able to determine what your house or property or land or Condo or should be listed for. This information isn’t private. Everybody can find this information. So I think strike one. I don’t think that is a reason to pay 6% to real estate agent. Step number two, effective marketing. So many real estate agents for years have said, well, I’m going to help you effectively market your house.
Really? Let me, let me explain to you how that, how it works here. If you want to list your house with one of my company’s called Sam Adams reality, let me explain what I’m going to do. I’m going to take professional photos, professional video, and on select cases, professional three d tours of your home. We’re going to get that done. Photos, video tour. Then we’re going to make a flyer, I really nice flier that uh, shares the attributes of your home and we’re going to put that on this thing called m l s the multi listing system. And when we put your house on mls, anybody who wants to find your house can find it using various third party online real estate searches. So right now, if you do a search for Tulsa real estate, let’s just do a search for Tulsa. I don’t even know Tulsa.
Let’s just say I’m looking for mid town real estate. I decided I want to buy a house in, in Midtown Tulsa, right? So it search for midtown real estate. What I’m finding right now is I find CB Tulsa mid town. Tulsa resists state. So I find it, I go up here and I go, Oh wow, look. And there’s a, there’s a photo of the gathering place. It shows me, uh, information about the various museums in town, and then I could find the listings and I can search that way or I can go one step above it and I can go to Zillow. When I go to Zillow, I can search by the value of the house where the house is located, I can search for, there’s a lot of searches I can do. And all of this information is commonly available. So if I’m looking to buy a house, what do I do?
One of two things. One, I go drive by and I look at houses in the area of tiff town where I’m looking to buy and look for signs and I wonder, I wonder, is this house available to purchase? And if I see a sign that I know it is available or option two, I go on the Internet and search for the port of town where I would like to buy a house. Right? So I don’t think that’s a justifiable reason to pay 6% of your home’s equity. 6% that’s a huge number. Why are you paying 6% of your home’s equity to a real estate agent? All right. Reason number three, why people use a real estate agent? Why does the average real estate agent charge 6% what does a real estate agent’s commission pay for it? Well, the screening for qualified buyers, I do think to a certain point that makes sense.
I think a lot of psychologically impaired people will call to want to buy your house. People that woke up drunk, people that are are naked, people that are psychologically naked, people that don’t have the money to buy your house. People that just want to kick the tires, they’re all going to call because they’re able to. I get it. So I do think screening for qualified buyers does make sense. Now, closing expertise. A lot of people say, well, the reason why I’m paying 6% is that a real estate agent should be really well coached and, um, how to close the deal. You know, it’s their job. I mean, these people know how to close a deal for the best price for the least asshole. Well, that’s not true. That’s not real. That’s not actually what real estate agents do. My friend, at the end of the day, if you want to sell your house for a price that makes sense, you need to consider flat rate real estate commissions, right?
I mean, if every disc jockey company had to charge the same price, every photography company, every limousine company, every optometry clinic had to charge the same price and that price was gouging people. That’s what we’re talking about. And I know there’s a lot of realtors who listened to this show, and I’m sorry that you’re going to hate me, but I knew this was coming in because I am not Nostradamus, but I am your Brewster domus. Ah, I started a company called Sam Adams reality with the, the founder of Shaw homes, the largest home builder in Oklahoma. Yeah. So if you’re listening right now and you’re in Tulsa, Oklahoma, I can, and I will list your house for $1,000 total. So let’s say you have a $300,000 house and you want to sell it. It’s really an $18,000 commission. Yeah. Guess how much you would pay us an intro?
Do the math. If the $300,000 house three carry $1,000 $1,000 now if you have a $300,000 house, you know, that’s, that’s $1,000. Don’t say it’s a $600,000 house, which would normally be a $36,000 commission. Got It. Andrew, what would be the commission you’d pay me? 600,000 yeah, carry the $100. So would it be shocking to you to know that, uh, just today, Samantha close two deals, considering that fact, the fact that you’ve just told me that Nela nothing shocking. I thought I would be feeling high flooding it because the buyer gets a better deal. They were like, well, since I’m not needing to factor in $36,000 of commissions, now how can we afford to do that? Well, there’s really only two reasons that cause people to buy houses. There’s two reasons. Two reasons. Sandra, when you were buying the house that you looked at, did you drive around to a certain area of town or certain part of the community or you go on in search on like Zillow?
Did you search on the multi listing system? Where did you drive around? I definitely searched on Zillow and then I did drive around with my wonderful, there’s only two ways a real inner can help you market your house. One, put it on the MLS system to put a sign in the yard. Why? Because if I want to live in broken Arrow and a certain part of broken Arrow, if I wanna live in Edmond, did a certain part of Edmund, if I want to live in midtown Tulsa and a certain part of it, I want it. But I had a buddy of mine who went to live in Cherry Creek, Colorado near the whole foods. Oh yeah. He definitely drove around that area. So if you look for signs and then people wonder, there’s signs and wonders, Oh, there’s a sign, I wonder if I should call orders multi listing systems.
So they’ve came up with this ridiculousness where you now have to pay a 6% regardless of how big or smaller houses. Right instead of flat rate real estate commissions? And so I thought, what if we charged people a dollar? Well, if we’re going to do that kind of thing, we’re going to revolutionize the industry. Oh yeah. So we should probably call it something revolutionary. So we decided to call the company Sam Adams reality. Now, no matter how big your house is, we promise to never charge you more than $4,444 but for the first 100 houses we sell, it’s just a dollar. That’s impressive. So we’re going to do on today’s show is we’re going to get into the history of Sam Adams, who the heck this guy was, how he revolutionized America and how we are helping to revolutionize real estate. But if you’re in Dallas, there’s a great company called door. They’ll sell your house for $5,000 flat rate real estate commissions. They are rocking and rolling. Tonia the revolution of the real estate industry is coming
and the year got 1,492 Columbus. Once Sarah the ocean blue, I want to get off his boat. In 1776 we declared English occupation wasn’t cool and to 1980 to almond merit, passionately conceived a baby boomer who in 2018 Brock home sellers and buyers, great joy. I’m just having a blast. The blast, he founded Sam Adams reality because he believed 6% read the state commission
swear way too hot there. $4,444 flat rate real estate commissions
flat rate real estate commissions seemed just right for if you have a house wish to hire those subs, does it? Sam Adams Brewery, the T. Dot. Co Two it feels so good. You can smell it smells like lavender, whatever. For some reason, you insist on paying traditional real estate agents 6% for nostalgic reasons. Don’t visit Sam Adams brivity.car where you can save a ton on money without committing treason.