Actions by our agents are our actions

“A significant change in consumer sales that eliminates or minimizes the role of the agent in the real estate transaction process could have an adverse effect on our business, financial condition and results of operations. These options may include direct-buyer companies (also called iBuyers) that purchase directly from the seller at below-market rates in exchange for speed and convenience and then resell them shortly thereafter at market prices, and discounters who reduce the role of the agent in order to offer sellers a low commission or a flat fee while giving rebates to buyers.”

According to Compass Form 10-Q most recent filing, offering a competitive listing rate or a competitive buyer rebate (in 40 states and Wash., D.C. where allowed) by a Realtor to their client “reduces the role of the agent.”

I have news for you, Robert Reffkin, paying 25% to 40% in commission kickbacks to broker-to-broker collusion schemes such as Zillow.com Flex Program, Realtor.com (Opcity.com), Redfin.com Partner Agent Program, Opendoor.com Partner Agent Program, RocketHomes.com, mellohome.com, HomeLight.com, UpNest.com, Clever Real Estate (listwithclever.com), Sold.com, Landed.com, LemonBrew.com, OJO.com, Xome.com, Better.com Real Estate, Tomo Brokerage (hellotomo.com), Blend.com Realty, RadiusAgent.com, ReferralExchange.com, RamseySolutions.com, EffectiveAgents.com, TopAgentsRanked.com, HomeCaptain.com, MyAgentFinder.com, FastExpert.com, HomeGain.com, AgentPronto.com, AbodeHQ.com, goMILLIE.com (AgentHeroRealty.com), HouseCanary.com (ComeHome.com), NestReady.com, IdealAgent.com and similarly situated “shell” brokerages does reduce the role of the Compass agent (or any other agent for that matter.)

All commissions in the United States are negotiable (except in Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon, and Tennessee, where home buyer rebates are presently banned.)

There are no “discounters,” only competitors.

I think its time we set the record straight on commissions:

(1) full-service agents can easily offer competitive listing rates and rebates to their clients.

(2) full-service agents cannot lawfully collude with “shell” brokers on the basis of consumer allocation, price fixing, and similar “per se” restraints to free trade.

(3) broker-to-broker collusion and consumer steering results in lower quality of service and/or higher commissions, fees, and price levels paid by consumers.

Compass agents are independent contractors who affiliate their real estate licenses with Compass and under the Compass brand. These 9,812 legal entities are not affiliates of any other brokerage, and are not allowed to collude with any other brokerage on the basis of “blanket” referral agreements.

Get your house in order, Compass.

#realestate #antitrust #kickbacks

Author: Litesand

Antitrust, real estate, e-commerce, fintech, proptech, bigtech View all posts by Litesand