Early this month, in an unprecedented move, the Department of Justice pulled out of its proposed settlement with NAR. And soon thereafter, President Biden issued an Executive Order on Promoting Competition in the American Economy.
An executive order with a specific clause concerning ‘exclusionary practices in the brokerage or listing of real estate.’ So, what’s going to happen next?
On this episode of Industry Relations, Rob and Greg discuss what Biden’s executive order means for real estate, describing the kind of regulations the FTC might impose on the industry in 2022.
They address the influx of institutional capital in real estate in the last two years, exploring what that could mean for buyer’s agent commissions and why it actually might be good for NAR’s renegotiation with the DOJ.
Listen in for insight on the need for price discrepancy between a good and bad buyer’s agent and get Rob and Greg’s opposing predictions on how the government might change the rules around cooperation and compensation—or not.
What’s Discussed:
How the DOJ reneged on its settlement with NAR and why it’s a big deal
What Biden’s executive order on competition means for real estate
The ideas re: concentration of power behind the Bradeis movement
Why Rob thinks the real estate lobby is at its weakest right now
Greg’s prediction that mortgage banks will step in to keep buyer’s agent commissions the same
The influx of institutional capital in real estate in the last two years (and why that might be good for NAR’s renegotiation)
The number of new business models designed to help consumers buy, sell and finance homes
Rob’s view that institutional investors will support the elimination of buyer’s agent commissions
The lack of price discrepancy between a good and bad buyer’s agent in real estate
Rob’s thought experiment re: whether the rich need buyer’s agents
Rob’s prediction that the FTC will issue proposed regulations for real estate
Connect with Rob and Greg:
Resources:
Blockchain and Real Estate on Notorious POD EP022
Justice Department Withdraws from Settlement with the National Association of Realtors
Rob’s Post on the DOJ Pulling Out of Its Settlement with NAR, Part 1
Rob’s Post on the DOB Pulling Out of Its Settlement with NAR, Part 2
Biden’s Executive Order on Promoting Competition in the American Economy
‘Amazon’s Antitrust Paradox’ by Lina M. Khan
‘BlackRock Is Not Ruining the US Housing Market’ in The Atlantic
Rob’s Response to The Atlantic Article
Rob’s Post: Do the Rich Need Buyer’s Agents?
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