Our president of the western United States was at our regional sales meeting on Friday. At the end, he announced that Compass has joined with all of the other brokerages who were identified in the NAR settlement as having over $2 billion in sales volume – a group that employs so many agents that it makes up 86% of the total NAR dues.

They have all hired the same law firm, and they are going after NAR. I think it means that the settlement that forced the big brokerages to pay $400 million will get litigated, and hopefully the lawsuit will get appealed too.

Hopefully, it isn’t just a delay tactic. The lawsuit should get appealed because the defense put on by NAR was pathetic and very arrogant – it was like they thought that they just had to show up to pick up their automatic win.

I don’t think any agent will mind if the buyer-agent commission isn’t required to be inputted into the MLS – we will live with that. We’ll probably live with having a required written contract with our buyers too.

But sellers should have the right to incentivize the buyer-agents. Because the DOJ won’t come out and state that clearly – they only hint at it – we will be living in purgatory until someone forces the issue. The brokerages should help defend the practice, and see it through to the end.

Some sellers may not agree with me now, but the market slowdown is coming and you will want additional tools to help sell your house in the very near future. If you don’t want to offer an incentive to buyer-agents, no problem.

Also mentioned on Friday is that they are going after the Clear Cooperation Policy too – the NAR mandate that a listing must be inputted into the MLS within one business day after any public marketing. We’ve come to live with that policy too, but I think it shows that they are bringing all the firepower to destroy the National Association of Realtors and build anew.

The president didn’t say anything about this being quiet, so I would think that there should be an announcement any day now. If this blog post disappears, then it might be a while?

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Jim the Realtor
Jim is a long-time local realtor who comments daily here on his blog, bubbleinfo.com which began in September, 2005. Stick around!

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