Realogy caused a kerfuffle earlier this month when the real estate industry learned, in unsealed court filings, that brokerage president Ryan Gorman is opposed to NAR’s mandatory compensation rules.
What’s behind Gorman’s stance on compensation? What does it mean for the MLS if the rules change? How would it impact brokers and agents?
On this episode of Industry Relations, Rob and Greg discuss how the value of the MLS would shift in the absence of mandatory compensation, looking at Northwest MLS as a case study around what happens when compensation is optional.
Rob predicts government regulations to eliminate the possibility of steering and Greg reflects on how the conversation around compensation might change in a buyer’s market.
Listen in to understand why optional compensation favors big brands and find out what MLS boards, brokers and agents should be doing to plan for a world where compensation is optional.
What’s Discussed:
What’s behind Realogy’s opposition to mandatory compensation rules
How the value of the MLS would shift in the absence of mandatory compensation
How compensation is optional at Northwest MLS but most offer it anyway
What buyers’ agents would lose by getting booted from the MLS
The prevalence of steering and why Rob predicts regulations to eliminate the possibility
Greg’s take on how the conversation around compensation might change in a buyer’s market
Why optional compensation privileges bigger brands (and hurts small, independent brokerages)
How compensation works in the world of commercial real estate
Why MLS boards should prioritize investments in data and technology
Connect with Rob and Greg:
Resources:
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What were the most important events in real estate in 2021? And how might those events change the industry moving into 2022?
On this episode of Industry Relations, Rob and Greg sit down to reflect on what they see as the most significant headlines of 2021, discussing the real reason behind Zillow’s abrupt exit from the iBuyer market and what Zillow 3.0 might look like.
Rob and Greg explore the significance of NAR’s apology for its racist past and policy changes around hate speech, describing how the ethics complaint against Pastor Brandon Huber reflects a growing division in the industry.
Listen in for insight on the impact of MLSs becoming technology companies and find out why it’s time for you to start learning about the blockchain and what this trend toward decentralization means for the future of real estate.
What‘s Discussed:
Rob & Greg’s take on the most important events in real estate in 2021
The DOJ’s withdrawal from its settlement with NAR and Biden’s subsequent Executive Order on competition
How Zillow’s acquisition of ShowingTime changed the way vendors, MLSs and associations do business
The real reason behind Zillow’s exit from the iBuyer market and what Zillow 3.0 might look like
Rob’s prediction that Rich Barton will retire again in 2022 and why Greg thinks he’s wrong
The significance of NAR’s policy changes re: the transparency of listing data
Why NAR’s apology for its racist past matters and how it might serve as the first step toward reparations
The ethics complaint against Pastor Brandon Huber and how it reflects the growing division in organized real estate
How Greg thinks about MLSs becoming technology companies and what it means for vendors
Rob’s insight on how blockchain technology might impact real estate
Connect with Rob & Greg:
Resources:
Biden’s Executive Order on Promoting Competition in the American Economy
The DOJ’s Antitrust Case Against NAR
The DOJ’s Withdrawal from Its Settlement with NAR
Business Insider Article on Zillow’s Project Ketchup
Rob’s Post on Zillow’s Project Ketchup
Ben Thompson on Zillow’s Decision to Exit the iBuyer Market
Rich Barton on the Stratechery Podcast
NAR Policy Changes on Transparency of Listing Data
Bloomberg Article on the NAR Formal Apology for Past Racism
Changes to the NAR Speech Code
Pastor Brandon Huber’s Lawsuit Against the Missoula Organization of REALTORS
The Bitcoin Standard: The Decentralized Alternative to Central Banking by Saifedean Ammous
Chris Dixon and Naval Ravikant on The Tim Ferriss Show
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