Listen Up Home Buyers! The guest is Steve Brobeck with the Consumer Federation of America. Steve talks with host Victoria Ray Henderson about the NAR lawsuit and settlement. This podcast was recorded December 2023. Since this recording, VA guidelines now allow for certain buyer broker charges.

Podcast notes:

Steve Brobeck who served as the executive director of the Consumer Federation of America from 1980 to mid-2018.

He now holds the senior fellow position where he has researched real estate issues since the 1990s.

Today’s topic is real estate agent commissions and specifically the recent verdict by a federal jury in Missouri which ruled that the National Association of Realtors and several real estate brokerages had conspired to fix prices by setting a standard where sellers pay the listing agent a commission that is split with the buyer’s agent.

The decision, which found the defendants liable for about $1.8 billion in damages This verdict has the potential of dramatically changing the real estate industry.The Association of Independent Mortgage Experts released an open letter in early December 2023 saying they are concerned by the potential unintended consequences of decoupling commissions.

Veterans and first-time home buyers will be adversely affected. VA Guidelines prevent buyers from paying agent commissions (“VA Lender’s Handbook,” Chapter 8, Section 3, Subsection c). And this could drive buyers to choose no representation when buying a home.  

And then the issue of how adding the buyer agent commission to the buyer’s side affects the appraisal of the property?

What is the plan should appraisal issues arise in the proposed restructuring that allows consumers to finance agent commissions?  

How do the parties work to resolve this?

If buyers are unable to step into the real estate market due to limited financial means, what framework will be in place to protect those consumers, who will fight to protect them?

Listen Up, Home Buyers! is a podcast covering issues related to the home buying process.

The goal of the podcast is to offer clarity to home buyers.

Victoria Ray Henderson, host, and producer of the podcast is a member of the National Association of Exclusive Buyer Agents.

The HomeBuyer Brokerage is committed to exclusive buyer representation advocating for homebuyers in every real estate transaction.

How can we help?

The exclusive buyer agents at HomeBuyer Brokerage specialize in serving home buyers. Please reach out with questions at info@homebuyerbrokerage.com.