Buyers & sellers here need to read & understand this judgement (sales, real estate)

[beach43ofus]

https://www.reuters.com/legal/missou...20home%20sales.

A class action lawsuit was decided recently against some real estate industry members for colluding to increase agent commissions.

I'm not a lawyer, but I know this will have significant nationwide implications moving forward; unless its overturned on appeals.

This could save consumers Billions in agent comisions a year in the future; if consumers are aware.

If you don't understand the judgement, & are doing a real estate deal now or soon, hire a real estate lawyer by the hour, & pay them to read and explain it to you in laymans terms. I would not trust anyone else in the real estate industry to explain it to you, unless they are a family member or close trusted friend that are in the industry.

[Sunshine Rules]

As to who's right and who's wrong on these current class action lawsuits, I will leave for the courts to decide. No system is perfect and should always be open to change as needed.

However, I do question the motives of why these major lawsuits are happening now. Yes, the law firms are claiming consumers will benefit from the law firms getting even richer, but somehow I have a feeling that the consumers, NAR, the MLS & real estate agents may all end up losers to some extent once the law firms have destroyed the current MLS system with no thought as to what will replace it.




This article is older, from 2015, but it's words have merit today:

https://thenewamerican.com/print/cla...or-businesses/

Manufacturers of consumer goods in the United States have a lot to fear from the government, and becoming the target of a class action lawsuit is right up there in the first tier of those concerns. An astounding 52 percent of major corporations are engaged in class action litigation right now. Federal judges have complete discretion about whether to certify a class action lawsuit, and then whether to approve large attorney fee requests. Once certified as a federal class action, an otherwise small lawsuit turns into a massive cash drain for the target company and a money machine for the lawyers.

The real goal of many of these lawsuits is to extract a large attorney fee for the law firm bringing the case. The class of alleged consumer victims — their clients — is often a secondary concern, and is usually left with relatively little financial benefit, sometimes merely a few cents.

and

In the rarefied world of the large class action law firm, cases are selected exactly backward from what the well-meaning person would expect. Law firms now do research to identify a suitable target company, write a lawsuit against that defendant (without that company knowing anything about it), and then — and only then — find a “lead” plaintiff to represent the class of “victims.”

Once the case is in place and filed in court, the lawyers pressure the target defendant company to negotiate some sort of token compensation for the users of the product, plus a large attorney’s fee, which is in essence a payoff to drop the matter.

The law firm then departs after obtaining its thousands or millions of dollars from the defendant company, and the consumers who bought the product may get a few dollars apiece, or a coupon for some more of the offending items, along with a cumbersome process to obtain their meager winnings.


plus

There is no practical constraint on lawyers who use the class action business model to get rich. There is no fee-shifting rule that would make them pay the legal fees of the target companies if they lose, or to be accountable if they bring a frivolous lawsuit. Only the defendant ends up paying its own massive defense costs, even if the attacker loses. With no consequence for lawyers who bring these suits, even in bad faith, it attracts a lot of participants to the field, and intensifies their foraging for new business segments or products to attack. No one running a medium- or large-sized business is safe from the sudden lawsuit falling out of the sky on them with no warning.



We've all seen what's happened here in FL as excessive law suits have resulted in huge increases in the cost of home and auto insurance. I came across an article recently that stated there are over 480 attorneys in FL that specialize just in filing insurance claims.

[beach43ofus]

Something else to look for if selling, are discount listing brokers to help keep costs down.

They are speading like crazy in Georgia, but took off much slower here...perhaps differences in laws by state?

Anyways, I used a discount listing broker in Georgia, and saved $17,000 on my sale transaction of a $700k home. You must be willing to do most of the work though, so know that going in. They get your listing on the MLS and all the other web sites, & provide you the legal forms, & a internet lockbox. The rest is up to you.

Eventually, anyone will have access to the MLS, if not already, so that will remove more barriers to do-it-yourself'ers like me.

Back when I sold in 2015 in Georgia, I couldn't access MLS to place my own listing, so I had to hire the discount broker for that.

[1insider]

As noted, consumers already have the option of using a flat-fee listing broker to gain cheap access to the MLS and if they choose, they can offer a mere $1 to a buyer's broker. No one is forced to use an agent nor pay any commission. I would advise sellers in Florida who choose to go this route to research where not to hold a buyer's deposit if they want any chance of keeping it in a default situation.

[joshan]

Originally Posted by beach43ofus

Eventually, anyone will have access to the MLS, if not already, so that will remove more barriers to do-it-yourself'ers like me.

.

I sure hope not and I do not think it will be the windfall you think. You put one incorrect item on the MLS and you are in court paying huge sums of money. The average person is not equipped for that, or even close. you think the used car market is shady? just wait if that happens, people will lose everything and cry to the courts again.

[beach43ofus]

Originally Posted by 1insider

As noted, consumers already have the option of using a flat-fee listing broker to gain cheap access to the MLS and if they choose, they can offer a mere $1 to a buyer's broker. No one is forced to use an agent nor pay any commission. I would advise sellers in Florida who choose to go this route to research where not to hold a buyer's deposit if they want any chance of keeping it in a default situation.

Your post is dead on, but too many consumers are not aware of the recent changes, so keep repeating costly old behaviors. That's why I posted here..to create awareness that the full commish days are over for those willing to expend a little mental energy.

[beach43ofus]

Originally Posted by joshan

I sure hope not and I do not think it will be the windfall you think. You put one incorrect item on the MLS and you are in court paying huge sums of money. The average person is not equipped for that, or even close. you think the used car market is shady? just wait if that happens, people will lose everything and cry to the courts again.

MLS is restaint of trade, & the courts will end it. Consumers will need to learn and adapt.

I can see a new profession of "seller coaches" emerging...like PA's (Physicians Assistants) in the medical field.

People w/ some legal background assisting sellers to avoid legal risk.

[joshan]

Agree to disagree I guess. Turning housing in the wild west would be the worst thing to happen to our economy in a long time. Expecting people to pay more to avoid legal risk, is not going to happen. They will just cry and ask for bailouts from their own stupidity.

"People w/ some legal background assisting sellers to avoid legal risk."

It is called a Realtor.

[StraightTalker2022]

In a hot market, why use a broker at all? Most likely, they will get you more looks, but a lot of times they will bring people around just to appear to be "working hard" and the they realize the home is way out of their price range. They also like to show the buyer what's "out there" for a few dollars more. Price your home properly (realizing there will be NO COMMISSION FEE) and it can be an easy task. Sometimes, realtors will over inflate the estimate of what your home is worth, in order to get you excited and they can secure the listing. Soon thereafter, there's usually a conversation about how prices have dropped a bit and you will need to adjust your sales price. The issue with this practice is that the house sits on the market and gets stale. Buyers begin to get suspicious when they see that a home is on the market for a long period of time, then avoid it. Do your research, check the comps and list your home by owner. It will require you to basically set up the viewing appts and compile info about your home to provide for potential buyers. First step is to retain an ATTY, who is willing to represent you (Not required by state of FLA, but highly recommended) Then, highly consider using a Title Company to insure the transaction goes smooth. Piece of cake!

[beach43ofus]

Originally Posted by joshan

Agree to disagree I guess. Turning housing in the wild west would be the worst thing to happen to our economy in a long time. Expecting people to pay more to avoid legal risk, is not going to happen. They will just cry and ask for bailouts from their own stupidity.

"People w/ some legal background assisting sellers to avoid legal risk."

It is called a Realtor.

The impact of the ruling, & discount brokers will be to lower the prices for real estate, not raise it.

More sellers & buyers are using discount brokers. They are not using full service Realtors as much anymore, so that is why some legal advice will be needed..to fill the void.

The old days of full commissions are eroding. Its undeniable. It hasn't hit FLA as hard as it has hit Georgia, but it will.

Here is what Georgia's discount broker landscape looks like, and foreshadows our future here in FLA:

https://www.houzeo.com/blog/discount...rs-atlanta-ga/

Rhonda Duffy up in Atlanta is killing it...#1 in the USA They have a legal compliance Dept to assist sellers:

https://www.realtor.com/realestateag...54f70100205039

https://voyageatl.com/interview/meet...-atlanta-area/

Virtual Real Estate Brokers/Agents are the future.