Since the National Association of REALTORS® announced that it entered into a proposed settlement agreement to bring an end to litigation surrounding federal antitrust conspiracy claims brought on behalf of home sellers, the national news media has misrepresented the true impacts on the real estate industry. Some media reports have indicated that home prices will be reduced, commission rates will dramatically decline, and that buyer’s agents will no longer be necessary in real estate transactions. All such claims are baseless and have created confusion for consumers.
One of the common misstatements in the news media is that “the standard commission rate” or “the typical commission rate” will be reduced significantly. In reality, there is no standard commission rate set nationwide, statewide or even within our local markets. Real estate commissions have always been and will remain negotiable between real estate firms and their clients. Each real estate firm has the autonomy to establish its own commission rates and the types of services offered, reflecting the diverse needs of its clientele.
Also, the news media fails to recognize that every state is different with respect to its forms, disclosures and protections for consumers. Unlike many other states, Wisconsin laws already mandate the use of state-approved forms (WB forms), which incorporate many of the pro-consumer policies highlighted in the settlement agreement. For over three decades, Wisconsin has championed written buyer agency agreements, setting a precedent for transparency and clarity in real estate transactions.
Finally, the value of REALTORS® in the real estate transaction remains steadfast. Buyers and sellers continue to have the option to enlist the services of a REALTOR® if they believe the services offered will be beneficial to them in the real estate transaction. Importantly, the proposed settlement agreement does nothing to diminish the value that REALTORS® continue to add to real estate transactions by providing professional advice, navigating paperwork, interpreting market data and ensuring a seamless transaction process.
As leaders in the real estate industry, it’s incumbent upon us to inspire confidence and trust among our clients, customers and the general public. We must use this moment to reaffirm our commitment to upholding the highest standards of professionalism and ethics, ensuring that Wisconsin remains at the forefront of pro-consumer policies and practices. By doing so, we not only dispel the misconceptions perpetuated by the media but also reaffirm the indispensable role REALTORS® play in guiding buyers and sellers through the complexities of real estate transactions.
Tom Larson
WRA President & CEO