157: NAR Slapped with $1.8B Lawsuit Payout, Ripple Effects Could Be “Enormous” w/James Rodriguez

On The Market

BiggerPockets

News, Education, Business, Investing

4.8 • 859 Ratings

🗓️ 8 November 2023

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The NAR lawsuit just ended in a way almost no one expected. The NAR (National Association of Realtors), America’s largest association of real estate brokers, agents, appraisers, and more, just got dealt a blow that there may be no recovering from. This lawsuit, which focused on agent commission splits, ended in a $1.8B blow to NAR, and this could be just the beginning of a slew of lawsuits like this. To explain all the messy details, we brought Business Insider reporter James Rodriguez back on the show to explain this massive lawsuit, the verdict, and what this means for the entire real estate industry. This major lawsuit alone could bring sweeping changes to how agents buy and sell real estate and how they’re paid. Even more ground-breaking, the future of buyer’s agents now seems murky at best and non-existent at worst, as these commission structures may make buyer’s agents’ jobs almost obsolete. If you’re an agent, investor, buyer, seller, or broker, the effects of this lawsuit CANNOT be ignored because if the dominos continue to fall, we could wake up to an entirely new real estate landscape. In This Episode We Cover: The NAR’s real estate agent commission lawsuit explained The $1.8B verdict and why this could swell up to over $5B in losses for the defendants Why NAR and Keller Williams, two massive companies, weren’t able to win this case The future for real estate agents and how this could crush their commissions “Enormous” ripple effects that could come as a result of this lawsuit Why NAR’s CEO decided to jump ship after the verdict was announced And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Hear Our Last Episode with James on This Lawsuit The multibillion-dollar lawsuits that could radically reshape how we buy and sell homes forever Connect with James: James’ Profile – Insider James’ Twitter Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-157 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Buy low, sell high. Very easy to say, but not always so easy to do. For example, high interest
0:07.2	rates are hurting the real estate market right now. Demand is dropping and prices in a lot of
0:12.2	markets are falling, even for many of the best assets. So it's no wonder the Fundrise
0:17.3	Flagship Fund plans to go on a buying spree expanding its billion dollar real estate
0:22.7	portfolio over the next few months you can add the fundrise flagship fund to your portfolio in
0:28.9	just minutes and with as little as $10 by visiting fundrise.com slash pockets fundrise.com
0:35.7	slash pockets carefully consider the investment objectives,
0:39.5	risks, charges, and expenses of the Fundrise flagship fund before investing. This and other
0:44.9	information can be found in the fund's prospectus at fundrise.com slash flagship. This is a paid
0:50.9	advertisement. This podcast is brought to you by progressive insurance, fiscally responsible, financial geniuses, monetary magicians.
0:59.1	These are the things people say about drivers who switch their car insurance to Progressive and Save Hundreds.
1:03.7	Visit Progressive.com to see if you could save.
1:06.2	Progressive Casualty Insurance Company and affiliates.
1:07.8	Potential savings will vary.
1:08.7	Not available in all states or situations.
1:10.5	Wondering where the Bigger Pockets community gets the best rental property insurance, start at
1:15.6	Steadily.com. Steadily landlord insurance protects against property damage, loss of rental income,
1:20.5	and liability claims. With lightning fast quotes, superior coverage, and a team that understands
1:25.4	real estate investors' unique needs, they've got you covered. Go to steadily.com for an instant quote now.
1:31.1	Visit biggerpockets.com slash landlord insurance and protect your rentals with
1:35.5	steadily insurance. Steadily Insurance, founded by landlords for landlords.
1:58.8	Hey, everyone. Welcome to On the Market. I'm your host, Dave Meyer, and today we're bringing you a bonus episode to discuss the breaking news that has come out of the real estate industry.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.