Maryland REALTORS® Online

We Did It

Chuck Kasky
CEO of Maryland REALTORS^®

I’m guessing some readers may not have the same reaction as me, but here we are: August 14th came and went, the sun rose, the day passed, the world did not end. This is not meant to minimize the effect the business changes have had on our profession, only to keep things in perspective. In the end, the changes did not change the foundational elements of our business. We still take listings and help buyers find their dream home. Buyers’ agents are still able to negotiate compensation with the listing broker and seller. Yes, the conversations with clients have changed, and how we communicate with each other about compensation has changed. But the basic elements of success have not changed.

Hopefully, by now everyone is comfortable with the new forms used to facilitate the negotiations about compensation, and I want to thank everyone who had a hand in developing them. You know who you are. Also, if you have suggestions on how to improve the forms, please let us know. It’s always been clear to us that this will be an iterative process. As we learn and adapt to this new reality, we will always look to do better, and you can help. Consumers and the market will ultimately dictate how transactions are conducted. We pledge to keep our eyes open, be nimble and adaptable.

And, as always, Maryland REALTORS^® will continue to be your source for up-to-date and accurate information, training, guidance, and support. Which leads me to my next point. Be careful! The amount of bad information and uniformed prognostication out there is staggering. I’ve spent some time rereading articles and watching videos that came out over the past several months, and virtually every one of them is wrong, often very wrong. Often, the authors/“stars” of these articles and videos are supposed to be “experts” in this field, yet they misstated the specifics of the settlement and made wild predictions that have or will turn out to be way off base.

And, unfortunately, some of our own members are engaging in risky and potentially illegal conduct. I have seen literally dozens of examples of this. The temptation is too often to hear what we say, internalize it, then look to see how to work around it instead of dealing with it head on.

We know enough now to provide our members with best practices. We also understand that this is not over. There are literally dozens of other lawsuits still to be resolved. The Plaintiff’s attorney in the settled case recently filed an amended complaint in the Gibson lawsuit to include Berkshire Hathaway Energy. Billionaire investor Warren Buffett’s Berkshire Hathaway owns 92 percent of the unit, which in turn controls the brokerage HomeServices of America, and is joining Compass, Douglas Elliman and Redfin among the defendants in the action seeking over $200 billion in damages. That’s right—billion with a “b.”

The Department of Justice (DOJ) is not a fan of the settlement, believing it did not go far enough. Let’s be clear, the DOJ has been explicit and consistent about its end game. They envision a marketplace where sellers hire their brokers and pay them, and buyers hire their brokers and pay them. Full stop. If they get their way, neither the seller nor the listing broker will be able to offer compensation of any kind to the buyer’s broker. The more we seek to undermine even the changes we’re dealing with today, the more likely we will confront even more disruption in the future. So, please, work within the confines of the settlement as it is. Follow the antitrust guidelines with which we are all familiar and help us help you.