Where Real Estate Gets Its Dirt

REX gets vexed by Ninth Circuit Court

From Inman News: REX loses appeal in long-running lawsuit against NAR, Zillow

“A three-judge panel on the Ninth Circuit Court of Appeals has ruled against REX Real Estate, affirming lower court rulings that threw out its antitrust claims against the National Association of Realtors and Zillow and denied the now-defunct real estate brokerage a new trial against Zillow.”

Even the DOJ couldn’t help…

“On Feb. 13, the Ninth Circuit held oral arguments in the case, with each side and the U.S. Department of Justice getting a chance to speak. Alice A. Wang, counsel to the assistant attorney general at the DOJ’’s Antitrust Division, asked that the case be sent back to the district court, arguing that “an optional rule could be mandatory in practice,” “the adoption of an optional rule can itself be concerted action,” and “an optional rule can serve as an invitation for others to join in a common plan.”

But the three-judge panel disagreed.”

I’ve never fully understood REX. Always seemed like they had ulterior motives. 🤷‍♂️

Katie Johnson, chief legal officer at NAR departs.

NAR Chief Legal Officer Katie Johnson is ‘stepping down’

“As we make this transition, our priority is ensuring business continuity and remaining laser focused on shepherding NAR through this time of significant industry change.”

Inman has asked why Johnson is stepping down, when she is stepping down and who will replace her. We will update this story if and when responses are received.”

Inman News

I think the writing was on the wall when Nykia got the full-time gig at NAR. Many had Katie pegged as the heir apparent for the CEO position once Bob Goldberg retired. But the New York Times sexual harassment stories and the Sitzer/Burnett case had other plans. So why stick around? I didn’t know her well, but she did take my few phone calls (one?) and respond to my emails. She was always cordial whenever we met in person. And unlike many detractors, I think she earned every dime she got from NAR. In another world I would love to hear all the behind the scenes stories she must have.

Good luck, Katie. And most of all, good luck, Nykia. You own this now

Why agent count isn’t going down for the foreseeable future

It seems a lot of conjecture has been about agent count now that August 17th has passed (and possibly people are starting to look at budgeting for 2025).

My thinking matches something I heard Keith Robinson say on his Real Estate Insider’s Podcast. The way I see the overall agent distribution is that they basically fall into three categories.

Category 1 (10%-20%): Top producers and teams. These agents aren’t going anywhere. There is too much money involved, and they are continuing the post-pandemic trend of gaining market share through efficiencies in process and technology.

Category 2 (10%-20%): Full-time agents. These are agents who need to transact to put food on the table. They are the most vulnerable. These agents need to make deals to survive. The shortage of inventory has hit them the hardest. We might lose these agents to 9-5 jobs, but they may still keep their licenses because it’s relatively cheap to do so. Even if they get a 9-5 job, they would still show up in agent counts.

Category 3 (60%-80%): Part-time agents. These are agents for whom real estate is not the household’s primary income stream. A transaction may simply mean adding more to their discretionary spending, like doing a home upgrade or going on a more elaborate vacation. These agents aren’t going anywhere for the same reasons stated in Category 2.

I’m also hearing from some inside sources that NAR membership has actually gone up in many places. Overall, NAR membership is down less than 3%. That’s far below some of the expectations of a 10% to 15% decrease that I’ve heard from many sources (including myself).

Nykia Wright is NAR’s new CEO

Nykia Wright Named Permanent CEO for the National Association of Realtors®

“Wright began her career in the financial services industry and, prior to leading the Sun-Times, was a strategy and business transformation consultant who advised Fortune 500 companies and top tier universities on operational, financial and performance improvement projects. 

She is also the co-founder of SonicMESSENGER, a software-as-a-service (SaaS) startup helping democratize audience engagement and measurement by leveraging smart audio.” 

NAR

I think I could come up with 10 reasons why an outsider is the right choice and 10 reasons why an “insider” would be the right choice. But, in the end not having any baggage of any previous relationships in this case is a good thing. As I’m fond of saying, loyalty costs. God speed Ms. Wright.

CRMLS first out of the gate with new “concessions in price” fields

California Regional MLS Provides New “Concessions in Price” Fields for Greater Agent and Broker Communication

“In 2023, nearly 40% of CRMLS’s Closed listings included concessions, i.e., monetary payments that a seller agrees to contribute towards the buyer’s expenses and other costs a buyer is responsible for in the transaction. Historically, concessions were only included in Closed listings. The new CiP fields will provide concession information at the listing level and be directly available in the MLS, so seller agents can fill them out when adding a listing. CiP fields will benefit all parties as those on the selling side can more easily market listings while those on the buying side receive a clearer idea of financial options.”

CRMLS

CRMLS has taken the leadership position on these “CiP” fields. Very smart of them to launch prior to the deadline. This will give them some real world experience on implementation and make necessary adjustments if need be.

What a crazy week

I think this NAR Midyear will go down in the record books as one of the most memorable. For good reasons and bad. First off I want to thank everyone for showing up at the Omni Sunday night. It was a great to see everyone in one place, even though the sole bartender probably needed therapy afterwards (I tried calling to warn them but nobody picked up). And a HUGE thank you to RoomVu for picking up the tab for the first round. RoomVu CEO, Sam Mehrbod, flight got cancelled so he couldn’t make it that evening but I sure he would appreciate if you dropped him a line on LInkedIn. And it was great to have Jeff Young there to give such an heart felt toast to Kristen. Thank you Jeff.

There is so much else to cover but I’m exhausted.

Godspeed everyone.

Vendor Alley reader has unique solution to compensation disclosure on MLS systems

“I think I’ve figured out the solution. From now on, the last three digits in the list price represent the basis points the seller is willing to offer a buyer’s agent. $595,250 = 2.5%. It’s elastic from 0% to 9.99% and legal proof. Is the DOJ going to crack down on how sellers price their property? 🤯”

Vendor Alley Reader

The reader only wished to be identified as a “strikingly handsome and incredibly intelligent industry expert.”

Another miss

Anybody else getting a ton of calls/texts/forwards from your “non-real estate” friends about the NAR settlement? My friends are saying that a lot of their social media feeds are crazy with anti-REALTOR messages. Mostly in their social media feeds, with a ton of memes and “quick takes”. I think all of us are still digesting these changes but in the end as Redfin CEO, Glenn Kelman wrote in a recent blog post (NAR Settlement: Kaboom!) “…perception is reality…”

“Even if the letter of the settlement allows for cooperation, how the settlement is perceived may still re-shape agent attitudes about cooperation, and consumer attitudes about fees. The result could be that agent-to-agent cooperation on fees is weakened but not killed. “

Glenn Kelman, Redfin

I want to say upfront that I think NAR did a tremendous job on the settlement for their membership. But, and I may be beating a dead horse here, this feels like another miss in messaging/marketing from NAR. Based on what I’ve seen on Twitter and elsewhere NAR took everyone by surprise, even at their own event, AEI.

How about pumping the brakes a bit? Create some good content that puts a positive spin on things. Give all those assets to share with your local MLS and associations (so they can pass it on) and mirror that with some sort of nationwide “we hear you” campaign.

But releasing the news when all of their association leadership was offsite? Plus, has anyone seen anyone from NAR in the national news?

WTF?

Back to basics

Defining and Communicating the Value of the Multiple Listing Service

“In light of this uncertain, ever-changing environment, a casual observer might ask, “What is the existential value of an MLS?” The truth is, the MLS has provided an abundance of value over the past century that explains its broad appeal and its continued relevance.

Being able to succinctly communicate the many benefits of the MLS in a modern environment—with historical context, and even from an international perspective—is critical for brokers and MLS leaders to ensure that transparent, liquid marketplaces continue to serve their communities. In fact, any professional who’s involved in the real estate profession should be prepared to describe the value of the MLS.

Sam DeBord

A good reminder.

Looks like non “association owned” MLS orgs are still on the hook

Still running through the docs. One reader tipped me off to this nugget; Check out #8 of NAR FAQ on the settlement:

“8. How does the settlement affect MLSs?

• The agreement would release association-owned MLSs from liability for the types of claims brought in these cases on behalf of home sellers related to broker commissions.

• While the release excludes MLSs that are not wholly owned by REALTOR® associations, the agreement provides a mechanism for those MLSs to obtain releases efficiently if they choose to use it…”

nar-qanda-competiton-2024-03-15

Shades of CIVIX?

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