1-2 cha-cha-cha. 3-4 cha-cha-cha. DOJ. NAR. FTC. MLS.
There was a dance of sorts held in DC on Tuesday, June 5, when the Department of Justice and the Federal Trade Commission hosted a ‘workshop’ to discuss competition in residential real estate. But while NAR and industry players prepared for the fox trot, bringing their best arguments for maintaining the status quo around data access, the DOJ put on a little salsa music and shifted the discussion to commission transparency and coupling.
Rob and Greg are reversing roles this week, as Greg spins conspiracy theories regarding the government’s intentions and the potential consequences of its intervention in the real estate industry. They speak to organized real estate’s nothing-to-see-here approach to the discussion and review the range of views shared in the Developments in Real Estate Fee and Service Models panel.
Greg explains why decoupling would effectively end the MLS, and Rob covers the paper prepared by the National Bureau of Economic Research suggesting conflicts of interest due to coupling. They address who would benefit if buy-side commissions went away, how such changes would impact portals like Zillow, and the surprising number of industry players who support decoupling. Listen in to understand why Rob and Greg are calling for NAR or CMLS to move on this and start leading the dance to develop solutions around commission transparency.
Organized real estate’s nothing-to-see-here stance at the DOJ/FTC workshop
The Developments in Real Estate Fee and Service Models panel
Greg’s take that the industry was caught off guard
How decoupling cooperation and compensation would end the MLS
The NBER paperon realtor commissions and conflicts of interest
The theory that real estate commissions are high due to coupling
Rob’s concern that the DOJ has already made up its mind
Why the industry needs to move on commission transparency
Why real estate is the only industry in which the seller pays the buyer’s rep
How the potential changes might impact portals like Zillow
Who would benefit if buy-side commissions went away
The leadership opportunity for NAR, CMLS to address DOJ/FTC concerns
The surprising number of people in support of commission decoupling
Public response to the previous NAR budget transparency discussion
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