A federal court has dismissed an antitrust lawsuit filed by the Utah-based real estate brokerage Homie against the National Association of Realtors (NAR) that claimed the organization’s member agents have steered prospective buyers away from Homie’s listings.
In the lawsuit that was filed last August in US District Court of Utah, Homie co-founder and CEO Johnny Hanna accused NAR’s member agents of boycotting his company out of the perception that they would be paid lower commissions in the sales of Homie-listed properties. Homie offered flat-fee services for home sellers and a 1.5% commission for buyer brokers – lower than the 2.5% to 3% that many buyer brokers are accustomed to receiving. The lawsuit also named several prominent brokerages as defendants, including Anywhere Real Estate, HomeServices of America and RE/MAX.
In its ruling, the court decided Homie failed to adequately present its case that NAR was working against it, noting that Homie’s citing of “five anecdotal examples of customers cancelling contracts or listings” did not prove “alleged contractual interference.”
Homie did not provide an immediate comment on the court’s ruling. NAR issued a statement that said, “NAR is pleased with the court’s ruling to dismiss the case with prejudice. NAR will continue to facilitate local real estate marketplaces that provide fair and equal access to property information, foster competition, and empower NAR members to serve clients on their homebuying and selling journeys.”
I am in the field and since last August when the new rules for commissions went into effect more agents wont touch a listing unless they get 3 to 3.5% and the same goes for buyers agents. Agents are not willing to negotiate their compensation. Additionally, they hold fewer if any open houses and feel if they put the listing on other platforms like Homes.com,Realtor.com, Zillow, etc., that they did their due diligence.
I am an agent. One of my jobs is to make sure that the client I am working for gets the best value for their money. They deserve to have someone looking out for their interests.
What the buyer or seller wants to spend and what the buyer or seller can spend are often two very different things.
I have been working as an agent for a long time. I know firsthand how much I am capable of doing for my client and how much I need to charge for my time and service.
I am also an agent who has the best interests of my clients at heart. Because of that, I am willing to negotiate.
I understand the current market and know that my services are moving more towards lower commissions than higher. Sometimes, it is even a choice between higher or lower commissions.
I’ve got to put my family and children first, and paying the bills to keep a roof over our heads is a big part of doing that.
If a buyer or seller asks me to lower my commissions, I’m willing to talk it over with them. I may not be able to reduce the fee, but I will always be willing to discuss it. I want to make sure that my clients get the best possible service, no matter what their budget is.
The fact is, this whole system is set up so that there’s a whole lot of different services that clients get from agents, and I need to be able to make enough money to pay all my bills, including the ones for my kids.
It’s not just about the fees; it’s also about the time and effort that I invest. The more I invest in a client, the more money it costs to do it right.
There are over 220 things an agent does for a client, and I won’t be able to do them all if the commission is too low.