Day 1: 2024 Commission Lawsuit Diary

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Real Estate

Today, 3/15/2024, we received news from the Florida Realtors® association that the National Association of Realtors® (NAR) has announced a PROPOSED settlement agreement that, IF ACCEPTED, would end the litigation of claims brought by some home sellers.

It just so happened that I had a previously scheduled 7pm listing appointment this evening of which was supposed to be a simple signing of the listing agreement by the sellers. However, due to news of this “proposed settlement” being read this afternoon by the husband, it became much more of a discussion on how this proposed change could affect the sale of their home.

I actually consider this to be great timing. I am thankful that he was aware of this situation and wanted to discuss it with me.  Why?  Well it caused me to realize that the questions about how this would play out will be plentiful and scary for a great many people.

That’s why, at 11:00 pm on a Friday night when I have an open house in the morning, I’m sitting here typing my initial thoughts about the situation we find ourselves in. I said “we”, because many of my readers are long time customers-turned-friends, who wouldn’t make a real estate decision without my involvement. They know I have their backs, and that my understanding of Florida Real Estate transactions far exceeds their own. To them, I’m like their family doctor or attorney.

So as I begin this first entry into my Commission Changes Diary of 2024, just know that my proof reader ( aka my sister Sherri ) will not have had a chance to read this before I publish it.  This will be what you get from me in the 11:00 hour after a long week - as I’m sipping a cocktail. In case you do not have time to read this entire blog, I’ll say this up front. I believe what they are seemingly being forced to propose goes against the mandate that was drilled into my head during my time in Real Estate School. They were adamant that  “These rules and regulations for FLORIDA REALTORS® are in place to protect the public from the incredible harm that can come to them through unethical and criminal behavior during a real estate transaction.”

My first great example to support that statement was provided to me this evening at my listing appointment. His initial thought was, “when I go to look for a home in my new town, it would seem to make sense that I should just call the listing agent since they won’t be paying a buyer’s agent’s commission”.  Now that is not what the settlement proposal actually says, but it’s what this gentleman took away from what he read. How many others will believe the same thing?  How many different interpretations will there even be?

I will end tonight’s entry with this. I know 3 couples that, right at this moment, wish they had not gone straight to the seller ( the builder in this case) to make their new home purchase.  They are backed up to River Rd in Wellen Park. When they were showed the lots, the widening of River Road hadn’t gotten that far yet. Now they want to move but can’t even sell their homes for what they paid for them.  There are 3 homes on the other side of the street that were purchased by my personal customers. I made sure they were aware of what was coming on the other side of the street.  Do you think I earned my commission? They certainly do.

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Steve & Katrina met in 1985 and have been married since 1987. Their Real Estate Sales business works hand and hand with Katrina’s Home Detailing & Staging Division.