201: Breaking: NAR Settles for $418M, Buying and Selling Homes Could Change Forever w/The New York Times’ Debra Kamin

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 22 March 2024

⏱️ 34 minutes

🔗️ Recording | iTunes | RSS

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Summary

A bombshell NAR settlement could bring wide-sweeping changes to the housing market. After a snowball of NAR lawsuits, the realtor association agreed to settle for a whopping $418 million and make critical changes to how real estate agent commissions are paid and how competition can be upheld. This significantly impacts anyone buying or selling a home and has life-changing effects for every real estate agent and realtor in the country. The New York Times’ Debra Kamin joins us to break the story. Debra breaks down the enormous legal loss that NAR (National Association of Realtors) suffered last week and the impacts it will have on the housing market. First, we discuss the new agent commission rules, which may break the standard six percent fee that realtors are used to taking. These commissions are real estate agents’ livelihoods, and a new model that supports lower commissions could force many agents to leave the industry entirely. We’ll also touch on the turbulent times NAR has faced recently, from sexual harassment scandals to changing leadership and, now, a massive settlement that could lose them more than half of their members. Will a new type of real estate agent form from the ashes of this century-old model? Or, could a brand-new way of buying and selling homes transform the housing market? Stay with us; we’ll give you the entire scoop. In This Episode We Cover: NAR’s massive settlement creating ripple effects across the real estate market The new real estate agent commission rules that could shock an entire industry Changes to the multiple listing service (MLS) that may open the market up to new competition The future of buyer’s agents and whether or not they’ll remain a critical component to buying a home Sexual harassment scandals, turbulent leadership, and recent NAR struggles What the future of using a real estate agent could look like 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 Debra's NYT Debra's Website Debra's Twitter BiggerPockets' Instagram The NAR Will Eliminate 6% Commission Standards and Pay $418 Million in Damages After Settling Lawsuit Is It the End of the Realtor? Inside the NAR Crisis New Agent Lawsuits Could Have Profound Effects for Buying and Selling Homes Check out more resources from this show on BiggerPockets.com: https://www.biggerpockets.com/blog/on-the-market-201 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hello, investors. My name's Dave Meyer and welcome to the Bigger Pockets Podcast Network.
0:11.9	Today, we are covering a breaking news story. If you haven't heard already, there have been a
0:18.9	anti-trust lawsuits lobby against one of the biggest
0:22.5	trade organizations in the entire country, the National Association of Realtors.
0:27.9	And just last week, NAR, the National Association of Realtors, has settled these antitrust
0:33.5	lawsuits. And what was contained in the settlement really is the potential to change the
0:39.1	entire real estate investing industry. And I know that might sound a little bit dramatic,
0:43.7	but it is really true. This could really fundamentally shift the way that people buy and
0:49.4	sell real estate. So today, in order to fully understand this super important topic, we're going to
0:54.5	bring on Deborah Kamen, who is a journalist from the New York Times to discuss the most recent
0:59.1	developments. Before we bring on Deborah, I just want to acknowledge that this recent and unfolding
1:04.6	story has created a lot of uncertainty and a lot of strong opinions about what might happen next, what should happen,
1:13.4	whether this was the right thing to do or not. In today's episode, what we're focusing on is
1:18.9	what we actually know, because there's a lot of speculation and we're going to just have to
1:23.5	wait and see how a lot of things unfold over the coming months. But our purpose here
1:28.7	in bringing in Deborah is not to say one way or another what should be happening, but instead
1:33.5	to just say what has actually happened so we can all learn the facts and form our own opinions
1:38.9	about what this means for the real estate industry. So with that said, let's bring on Deborah.
1:50.2	Deborah, thank you so much for joining us today. Thank you for having me. It's fun to be here.
1:54.2	For our listeners who might not be real estate agents or familiar with the whole drama that's
2:00.3	been going on, can we just start
2:01.5	with the basics and have you explain to us what the National Association of Realtors is in the
	...

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