In a strong statement, NAR Pres. says the current commission structure “ensures greater equity and equality for first-time, low-income, and many other homebuyers.”
WASHIGTON – “Class action attorneys looking for a payout and those illegitimately trying to position themselves in the real estate market are trying to mislead people with misinformation and glaring omissions about the real estate agent commission structure,” says National Association of Realtors (NAR) Pres. Charlie Oppler in a statement released by NAR. “I want to set the record straight about how this structure works and how it gives everyday Americans and small businesses critical advantages.”
Oppler says the commission structure puts the “dream of homeownership within reach for more Americans. The commission structure where the listing broker offers to share his or her commission with buyer’s broker ensures greater equity and equality for first-time, low-representation.”
Any suggestion that buyers have to pay an out-of-pocket agent commission at closing – a cost in addition to what they’re spending for the home – would freeze many out of the market, Oppler says.
Oppler says the current system benefits both buyers and sellers.
“The associated Multiple Listing Service (MLS) database and system is also designed to incentivize cooperation between brokers who share all their information in one place, providing the best and greatest number of options for buyers as efficiently and transparently as possible,” he says. “In turn, sellers get access to the largest possible pool of buyers within a market.”
Oppler says a level playing fields benefits everyone.
“A home is the single largest, most complex purchase most people make in a lifetime.
Consumers know they don’t want to go do this alone,” he says. In 2020, 97% of buyers did initial research on the internet, but “nine in 10 people still choose to work with a real estate agent to buy a home. Real estate agents help people navigate complex, data-heavy, and voluminous managing attorney reviews, and advising on zoning to arranging appraisals, serving as a professional negotiator in a highly competitive market, and advising on the latest trends in the local housing market. All that for a median gross income of $49,700 for Realtors.
“The cooperative broker MLS system makes it possible for smaller brokerages to compete with larger ones through instant exposure and access to the largest, centralized database of residential real estate listings in your market,” he says. “Because of MLSs, we’re at a point in the market where we’re seeing unprecedented competition among brokers, especially when it comes to service and commission options. That gives consumers many different choices including which customer service approach and broker and commission model they prefer.”
Oppler also backs the importance of Realtors to their local communities.
He says the structure is “enabled by Realtors who go above and beyond to give back to their local communities. In 2020, 79% of broker-owners volunteered their time on a monthly basis and 92% made monetary donations. Meanwhile, 82% of Realtors made charitable donations, and 91% of Realtors Relief Foundation has collected and distributed more than $32 million in relief aid for victims of more than 80 disasters in 39 states and territories, helping more than 13,000 families.”
Oppler ends with a warning: “Beware of the alternatives reality being advanced by big money plaintiff’s attorneys looking for a payout, and those illegitimately trying to position themselves in the real estate market. What’s real are the everyday real estate agents living and serving in our communities across the country who are helping their fellow, everyday Americans achieve the ultimate American dream.”
Source: National Association of Realtors