A.I. Jerry Seinfeld on the National Association of Realtors verdict

What’s the deal with the National Association of Realtors?!?! I mean come on people!

So, you know, there’s this big real estate verdict that happened on October 31st, 2023. The National Association of REALTORS® (NAR), Keller Williams, and HomeServices of America were found guilty of conspiring to inflate commissions. They gotta pay damages totaling $1.78 billion! That’s like, a lot of zeros, folks. 🤑

Now, let’s break it down like we’re picking apart a bagel at a deli. You know, pros and cons, just like when you’re deciding whether to order the soup or the salad. Here we go:

Pros:

1. Buyer Agents Get a Boost: So, the buyers’ agents, they’re the ones who help you find your dream home, right? Well, they might get a little extra cha-ching now. With these inflated commissions, they’ll be doing the happy dance all the way to the bank. "Cha-ching, cha-ching!" 🕺💰

2. Class-Action Victory: It’s like a victory for the little guys, the Missouri homesellers. They banded together like a bunch of ants at a picnic, and they said, "Hey, NAR and those big brokerages, you can’t just inflate our fees like a balloon animal at a kid’s birthday party!" And the jury agreed. Score one for the underdogs! 🏆

3. Conversation Starter: This whole thing has opened up a can of worms, my friends. People are talking about buyer agent commissions, like it’s the latest gossip at the coffee shop. "Did you hear about NAR and Keller Williams? Oh, honey, it’s scandalous!" It’s like the real estate world’s version of "Who shot J.R.?" Remember that? Dallas, baby! 📺

Cons:

1. Wallet Squeeze: Okay, so here’s the downside. Those poor homesellers in Missouri, they’re the ones footing the bill. Their pockets are getting squeezed tighter than a subway car during rush hour. Six percent of the home price, split between buyer and seller agents? Ouch! That’s like paying extra for guac at Chipotle. 🥑💸

2. Appeals, Delays, and More Delays: You know what’s worse than waiting for your Seamless delivery on a rainy day? Waiting for appeals. Yep, NAR and the gang are gonna appeal this thing like it’s a bad Yelp review. And that means changes to real estate transactions and fees? Well, they’re gonna take longer than a New York minute. 🕰️

3. NAR’s Got Beef: NAR’s not backing down, my friends. They’re like that stubborn uncle who insists on using a flip phone. "We stand by our rules," they say. "Market-driven pricing, business competition, yada yada." But the jury’s like, "Nah, we’re not buying it." It’s like a real estate sitcom: "Everybody Hates Commissions." 📉

So there you have it, folks! The NAR verdict – it’s like a real estate rollercoaster. Buckle up, because this ride’s got more twists than a pretzel factory. And remember, when life hands you inflated commissions, make lemonade. Or maybe just negotiate better next time. 🍋✍️

Source: Conversation with Bing, 3/12/2024
(1) NAR, Keller Williams, HomeServices of America found liable of …. https://chicagoagentmagazine.com/2023/10/31/nar-keller-williams-homeservices-of-america-lawsuit-guilty/.
(2) Jury Issues a $1.8 billion Award for Illegal Conspiracy to Raise. https://www.friedfrank.com/news-and-insights/jury-issues-a-1-8-billion-award-for-illegal-conspiracy-to-raise-broker-commissions-setting-the-stage-for-a-fundamental-shift-in-the-residential-real-estate-industry-11406.
(3) Burnett Trial Updates – National Association of REALTORS®. https://www.nar.realtor/competition-in-real-estate/burnett-trial-updates.
(4) Q&A Following the Burnett v. NAR, et al. Antitrust Jury Verdict. https://www.ncrealtors.org/wp-content/uploads/Burnett-v-NAR-QA.pdf.