March 18, 2024 by Mike Donoghue
It’s not often that I read current industry news and am compelled to share my thoughts with the broader marketplace; now is one of those times. I am referencing the ongoing class action lawsuits being filled against the National Association of Realtors and several major brokerages regarding seller-paid agent commissions. Additionally, the Department of Justice has recommended changes that could shift the burden of buyer broker compensation onto the buyer themselves. (Jennifer Nosalek, et al. v. MLS Property Information Network, Inc., et al).
I am very concerned about the potential impact to many segments of the population who are already facing hurdles in purchasing a home due to escalating values and transaction costs. If a buyer is now either required to pay for a buyer’s broker or go without their services, those with limited means will be significantly disadvantaged due to higher costs to enter the market and/or limited knowledge to participate in the marketplace. The prospect of buyers having to shoulder additional costs or navigate the market without proper guidance deeply troubles me, as I’m sure it does you.
Another area of concern is for our nation’s Veterans. Under the new recommendation and existing VA guidelines, Veterans seeking VA mortgages would not be allowed to pay for a buyer’s broker. This would force them to choose between forgoing crucial representation through the daunting real estate transaction or sacrificing the benefits they've rightfully earned through their service to our country.
I humbly urge you to join me in advocating for change. If you too, share my concerns about the impact of these developments, I encourage you to reach out to your elected officials. Let them know that decisions like these only serve to erect barriers to homeownership, especially for those who need access the most.
To make your voice heard, please take a moment to find the contact information for your elected representatives using the following link: https://www.usa.gov/elected-officials
Thank you for taking the time to consider these important matters. Together, I believe we can make a difference and ensure a more inclusive and supportive real estate environment for all.
Warm regards,
Mike Donoghue
