July 7, 2023 | Eul Basa

U.S. Real Estate Industry Facing Tough Times Ahead, Says Expert


Could America’s real estate industry be in trouble? Jason Oppenheim, star broker of Netflix’s hit series “Selling Sunset,” thinks that it is.

Sitting down with Yahoo Finance, Oppenheim expressed specific concern for the real estate industry’s commission structure which is subject to undergo some significant changes.

"To be specific about real estate agents, we've got federal regulators and a couple of lawsuits coming down the pipeline that, at worst case, could be an armageddon for real estate agents," he said. "You might see regulators uncouple the commission structure where the seller is now essentially paying for the buyers' and agents' commission."

One lawsuit, Sitzer et al. v. National Association of Realtors (NAR), alleges that the NAR has been operating under several rules that violate the Sherman Antitrust Act. Introduced way back in 1890, such an act disallows any activities that prevent interstate business dealings.

neighborhood-1542073000620.jpgShutterstock

The lawsuit specifically criticizes the NAR rule which requires listing brokers to offer buyer brokers a commission to list a property. According to the home sellers who filed the case, such a practice restricts competition because it inflates sellers’ costs.

Typically, in a property sale, there are two agents involved: a buyer’s agent and a seller’s agent.  Should NAR lose in court, the buyers’ agents would be removed from the process, thus putting thousands of real estate agents in the U.S. in peril.

"I think there are too many real estate agents anyway, so I don't think that's part of the problem.” I think the problem is that if we remove the buyer's agent's commission, you'll see the listing agent representing the buyer in 90% of transactions,” said Oppenheim. 

"I don't think that's healthy for the consumer, because I think that the buyer should have their own representation.”

The NAR is hoping to settle with regulators or even file an appeal, but there’s no guarantee either option will work in their favor. Oppenheim predicts things will really start to take a turn in 2024.

Source: 1, 2


READ MORE

The Yawn-Inducing Hall of Fame: Top 15 Most Boring Jobs

Take a humorous dive into the top 15 most boring jobs in the world. From watching paint dry to counting cars, discover the less-than-thrilling day-to-day of these necessary, yet yawn-inducing roles, along with what they entail and what they pay.
November 14, 2023 Allison Robertson
worst employees

The Worst Types Of Employees In The Workplace

Navigate the minefield of workplace dynamics with our guide to the worst types of employees. From procrastinators to gossip mongers, discover why these characters can disrupt the harmony of any workplace and how to handle them effectively.
November 27, 2023 Sammy Tran
Gerald Ratner Editorial

Doing A Ratner: Honesty In Business And The £500 Million Gaffe

Gerald Ratner built a massive jewelry empire from the ground up by himself—then, in just a matter of minutes, he destroyed it all.
January 19, 2024 Samantha Henman
worstmoments_internal

These People Shared The Worst Moments Of Their Lives…And They’re Utterly Brutal

From cheating spouses to catastrophic accidents, there are times when life throws brutal punches...and these people have firsthand experience.
March 1, 2021 Eul Basa
travel-internal

World Travelers Share Their Best Travel Tips and Tricks

Being a savvy traveler is something that only comes with experience. These frequent flyers share their best tips and tricks to help you travel seamlessly. 
November 15, 2019 Eul Basa



Dear reader,


It’s true what they say: money makes the world go round. In order to succeed in this life, you need to have a good grasp of key financial concepts. That’s where Moneymade comes in. Our mission is to provide you with the best financial advice and information to help you navigate this ever-changing world. Sometimes, generating wealth just requires common sense. Don’t max out your credit card if you can’t afford the interest payments. Don’t overspend on Christmas shopping. When ordering gifts on Amazon, make sure you factor in taxes and shipping costs. If you need a new car, consider a model that’s easy to repair instead of an expensive BMW or Mercedes. Sometimes you dream vacation to Hawaii or the Bahamas just isn’t in the budget, but there may be more affordable all-inclusive hotels if you know where to look.


Looking for a new home? Make sure you get a mortgage rate that works for you. That means understanding the difference between fixed and variable interest rates. Whether you’re looking to learn how to make money, save money, or invest your money, our well-researched and insightful content will set you on the path to financial success. Passionate about mortgage rates, real estate, investing, saving, or anything money-related? Looking to learn how to generate wealth? Improve your life today with Moneymade. If you have any feedback for the MoneyMade team, please reach out to [email protected]. Thanks for your help!


Warmest regards,

The Moneymade team