Posted on December 24, 2024
Authored by Jonathan Hammer Levy
Homeowners looking to sell their property typically interview potential seller agents to gain clarity on key factors: the commission costs, the marketing strategy for their home, how the agent will secure the highest possible sale price, and the expected timeline to close the deal. While there are countless nuances involved, these core elements give a clear idea of what sellers prioritize when choosing an agent.
Similarly, homebuyers have comparable expectations, but of buyer’s agents. They want to know what steps will be taken to find the best available property, how to negotiate the most favorable price, and the qualifications and experience their agent brings to ensure a contract that protects the buyer's best interests.
Both homebuyers and sellers have the absolute right to interview and select agents who best align with their needs. There is no pressure or obligation to accept any particular terms or conditions, and they are free to negotiate every aspect of their agreements, from compensation, where, to scope and duration. Buyers, for instance, can sign agreements for a single property, a specific timeframe, or even a particular community or geographic area, with the flexibility to cancel or amend terms as needed.
Yet, the Department of Justice (DOJ) seems to suggest, particularly regarding buyer's agents, that there is some inherent limitation or restriction when requiring buyers to sign an agreement before viewing a property. This is simply untrue. Buyers can work with as many agents as they choose provided there is no conflict of interest, sign agreements tailored to their specific needs, and negotiate terms with complete autonomy. The industry not only complies with existing mandates but goes above and beyond to ensure robust consumer protections on both sides of the transaction.
Despite this, the DOJ continues to posture with threats of additional antitrust litigation. This stance is perplexing given that recent settlements—entirely unrelated to the DOJ—demonstrate the industry’s commitment to compliance and consumer fairness. The DOJ’s aggressive intervention feels unnecessary, adversarial, and detached from the realities of real estate transactions.
For over a century, buyers and sellers have enjoyed the unfettered right to choose, hire, and even fire their agents as they see fit. Across millions of transactions, only a minuscule fraction result in litigation—a stark contrast to many other industries where fraud, noncompliance, and disputes are far more prevalent.
Spend time with agents. Observe firsthand how home sales and purchases unfold in real-time. It’s clear your perspective is shaped not by experience but by external influences, flawed data, and misinformed assumptions. Real estate is one of the most important financial decisions a buyer will ever make, and buyer's agents play a critical role in finding the right property, negotiating favorable terms, and ensuring contracts are fulfilled for a lawful transfer of ownership.
Moreover, real estate has consistently proven to be one of the most reliable wealth-building assets in history. The appreciation of property values has generated billions in capital gains and created financial stability for millions of consumers. Why, then, does the DOJ target an industry that has been instrumental in building generational wealth for so many?
Real estate is far more than just an industry—it is the bedrock of the American Dream, a pillar of financial security, and a pathway to generational wealth. For over a century, real estate professionals have played a pivotal role in making this dream a reality, guiding millions of Americans through one of the most significant and transformative decisions of their lives.
Yet, the DOJ’s allegations threaten to upend this trusted framework, casting unwarranted doubt on an industry that Americans have come to rely on for its transparency, professionalism, and unwavering commitment to their best interests. What Americans voluntarily seek, value, and hope for—a seamless, secure, and empowering real estate experience—is now at risk of being transformed into a bureaucratic nightmare. This unnecessary interference undermines not just an industry but the very ideals of choice, trust, and opportunity that real estate embodies.
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