Sitzer/Burnett vs. National Association of Realtors (NAR)
Maybe you've heard about the landmark class-action lawsuit that names NAR, and several other defendants, wherein the plaintiffs allege violations of the Sherman Antitrust Act. There's been quite the media buzz around it with so many of my clients and friends asking questions. The media has the real estate profession taking a serious beating, but I’m not so convinced this is the end of the world for Realtors, and my thoughts about this case might surprise you.
First things first, I think this is actually going to be really good for the real estate profession. As it stands, there are over 1.6 million Realtors, and of that number, less than half are practicing real estate full time.
LESS. THAN. HALF.
The barrier to entry and success is pretty low across the country, which means that anybody wishing to enter the real estate business does not have to spend a lot of time, money or make a decent investment to enter into competition with the existing group of realtors. The reality is the majority of those 1.6 million realtors do not fully understand their fiduciary responsibility, and too many of them give the career professionals a poor reputation.
This landmark case will very likely make the barrier to entry and success much higher. Buyers and sellers will have more ammo to challenge the value of their realtor, and rightly so. The career professionals out there who not only understand their value, but know how to provide it to their clients, will continue to sell and do really well.
This is just the first chapter in a longer legal process and there is so much more to come.
Want to hear more of my thoughts on this landmark case? Head to my Instagram to check out some of my reels and more.
