Debra Kamin

So as a result, we're going to set the price for the home here so that when that commission is paid out, you still take home as much as you want.

And if commissions go down, if you're only paying 5%, a 1% reduction in home prices across the board in the U.S. is a massive dent in the housing market that actually really should open things up for a housing market that is so tight and so restrictive for so many buyers.

And if commissions go down, if you're only paying 5%, a 1% reduction in home prices across the board in the U.S. is a massive dent in the housing market that actually really should open things up for a housing market that is so tight and so restrictive for so many buyers.

So we were really optimistic that it was going to change things.

So we were really optimistic that it was going to change things.

I call it the great real estate workaround. Hmm. Very intriguing. Thank you. Explain. The settlement was designed to take away these conversations that agents were having about commissions. These conversations were happening over these channels, these databases. They're called MLSs, multiple listing sites.

I call it the great real estate workaround. Hmm. Very intriguing. Thank you. Explain. The settlement was designed to take away these conversations that agents were having about commissions. These conversations were happening over these channels, these databases. They're called MLSs, multiple listing sites.

Exactly. It's where home listings live on the internet. And if you're an agent and you're working with a buyer and you're looking for houses, you go to the MLS to see what houses are for sale. But each listing has information on it. The address, the square feet, etc. It also used to have a commission amount.

Exactly. It's where home listings live on the internet. And if you're an agent and you're working with a buyer and you're looking for houses, you go to the MLS to see what houses are for sale. But each listing has information on it. The address, the square feet, etc. It also used to have a commission amount.

Yes, almost universally.

Yes, almost universally.

The seller pays the commission to their agent, and that agent for the sellers then splits that commission with the buyer's agent. Right. That's how it has been done for a long time. And MLS just kind of laid it all out. Yes. And the key focus of the settlement was that should be no more. Moving forward post-settlement, the rules said that sellers pay their own agents, buyers pay their own agents.

The seller pays the commission to their agent, and that agent for the sellers then splits that commission with the buyer's agent. Right. That's how it has been done for a long time. And MLS just kind of laid it all out. Yes. And the key focus of the settlement was that should be no more. Moving forward post-settlement, the rules said that sellers pay their own agents, buyers pay their own agents.

If you work with a real estate agent, it's up to you to pay them. That was what was supposed to happen. which should have brought a lot more competition and negotiation into the marketplace. What workaround could work around that? Well, the settlement was very specific in its language, that these conversations about splitting commissions could not happen on these databases.

If you work with a real estate agent, it's up to you to pay them. That was what was supposed to happen. which should have brought a lot more competition and negotiation into the marketplace. What workaround could work around that? Well, the settlement was very specific in its language, that these conversations about splitting commissions could not happen on these databases.

So the real estate community was like, okay, we'll just move these conversations elsewhere. It never said we can't have them at all. And I don't mean this is happening in secret.

So the real estate community was like, okay, we'll just move these conversations elsewhere. It never said we can't have them at all. And I don't mean this is happening in secret.

Just a few days after the settlement.

Just a few days after the settlement.

The president of NAR made a video that went out to every realtor in the group.