Leave it to the WGN Weather Blog to trumpet that we've set a new record for days over 15.6°C before March 15th (12). We've also tied the record for days over 240K (75)! In fact, I'm confident that 2024 will tie the all-time record for days over 240K (366), last set in 2020.
Closer to home (ah, ha ha), I still have two claim forms to fill out in the great National Association of Realtors settlement for anti-competitive commission payments, which has gotten the group to make a modest concession to avoid getting sued again:
The National Association of Realtors, a powerful organization that has set the guidelines for home sales for decades, has agreed to settle a series of lawsuits by paying $418 million in damages and by eliminating its rules on commissions. Legal counsel for N.A.R. approved the agreement early Friday morning, and The New York Times obtained a copy of the signed document.
Americans pay roughly $100 billion in real estate commissions annually, and real estate agents in the United States have some of the highest standard commissions in the world. In many other countries, commission rates hover between 1 and 3 percent. In the United States, most agents specify a commission of 5 or 6 percent, paid by the seller. If the buyer has an agent, the seller’s agent agrees to share a portion of the commission with that agent when listing the home on the market.
The lawsuits argued that N.A.R., and brokerages who required their agents to be members of N.A.R., had violated antitrust laws by mandating that the seller’s agent make an offer of payment to the buyer’s agent, and setting rules that led to an industrywide standard commission. Without that rate essentially guaranteed, agents will now most likely have to lower their commissions as they compete for business
The settlement will pay me a few hundred dollars, even though I could argue that during the settlement period I paid over $10,000 in excess commissions. It gets worse: in three deals, the same agency represented both sides, making it even harder to get a discount or shop around.
I think the best structure for a real-estate commission would start with a flat dollar amount and add bonuses for shortening the time on market. Something like, I'll pay you $10,000 plus 1% of anything above list from the sales proceeds if we sell at or above the listing price. I'll pay another $2,500 if we get a buyer within 7 days and the deal is closed within 42 days. But if we don't get a buyer within 28 days or we close for under 92.5% of the listing price, I'm only paying you $7,500.
The days of paying 6% for a sales agent to do one open house and shoot some photos are over.