This week in the Gulf Shores sales meeting, we had an impromptu discussion about the flurry of lawsuits affecting the real estate industry. There is still confusion about how these lawsuits will affect our industry, so NAR is compiling some articles, videos, PR, and making various statements about this subject.

Below I have included several links to videos, articles, and positioning statements made by NAR. You may have seen Wednesday morning that NAR sent the members an email with the subject line, "Telling the REALTOR® Value Story." NAR has begun a PR campaign on various recent topics, importantly highlighting and demonstrating the value a REALTOR® provides to the consumer.

In the video below, a consumer that recently purchased a home shares his opinion of a change in commission structure: Competition in Real Estate: Changing the Commission Model Would Deter Homebuyers (CLICK HERE).

NAR's Interim CEO posted this short NAR Video which tells the real story about "…who REALTORS® are and what we do."

The link below is a very good resource for information about competition in real estate, and it has a good compilation of videos and articles that address existing lawsuits, various professional opinions, and competition in the real estate industry.  I would suggest that you save this link (below) for when you have time to read and watch different aspects of current national events in the real estate industry . . . perhaps more important today than ever before: CLICK HERE FOR RESOURCE.

Included in the link directly above is a good article summarizing the effect the compensation changes may create in the industry (Click here to read it). Included in this article is an interesting statement regarding VA loans: "Under current rules of a VA Home Loan, the veteran home buyer may not pay any commissions to a real estate agent. Ironic that the federal regulations for this loan contradict the federal lawsuit…" (Now granted, the article is dated in April 2023 before the lawsuit was heard in court, but he makes some good points.)

I also enjoyed this video posted by Industry Expert Anthony Lamacchia sharing his opinions of the Sitzer / Burnett case: Anthony Lamacchia speaks (watch here). Anthony is obviously very passionate about the real estate industry and defending our value proposition. It is worth a watch.

If you would like a good opinion piece defending the industry, here Tracy Kasper, past NAR president, shares her thoughts: Tracy Casper, USA Today Opinion article - Dec 2023 (CLICK HERE). In our sales meeting this week, there was a strong opinion that buyers would be even more challenged to buy real estate if they had to add commissions to their closing costs. Tracy's article shares the same thoughts, "…For lower- and middle-income buyers in particular, saving for a down payment can be difficult, and the daunting prospect of buying a house will, for many, be the most significant and complex purchase of their lives. For these buyers, adding broker compensation on top of closing costs would push the dream of homeownership even further out of reach. This especially would be true for veteran homebuyers because VA loans prohibit them from paying buyer broker fees."

No doubt there will be changes in the real estate industry on the horizon. We do not need to get caught up in the drama in the courtroom. Just remain informed, be able to communicate your value as a REALTOR® to the consumer, and remain a strong advocate for your clients best interests.