The Department of Justice pulled out of its proposed settlement with NAR and President Biden has issued an executive order addressing ‘exclusionary practices’ in real estate. Now, more than ever, NAR will need to exercise its political power to fight off FTC regulations. But how much political pull does the organization really have?

On this episode of Industry Relations, Rob explains why he thinks NAR is the weakest it’s ever been politically, discussing how changes to the Code of Ethics harmed the organization’s unity and what that might mean for contributions to RPAC.

Greg offers the counterargument that NAR’s record-high membership is a reflection of its political capital, and our hosts explore the concerns professional staff and academics in DC have raised around real estate for the last 20 years. 

Listen in to understand how the insanity of the 2020 housing market might influence the way the public thinks about real estate and learn what you should be doing to combat potential government regulations or plan for lower commissions moving forward.

What’s Discussed:  

Why Rob thinks NAR is the weakest it’s ever been politically

Greg’s counterargument that NAR’s record-high membership is a reflection of its political capital

What a conversation between an NAR lobbyist and the chief of staff for a senator might sound like

How changes to the NAR Code of Ethics harmed the organization’s unity (and what that might mean for RPAC contributions)

How NAR’s head lobbyist’s connection to the Trump organization might impact her ability to get the REALTOR agenda through

The concerns professional staff and academics in DC have raised re: real estate for the last 20 years

How the insanity of the 2020 housing market might influence the way the public thinks about real estate

Rob and Greg’s challenge to listeners to engage their membership in conversations around potential regulations

The benefit of contingency planning for lower commissions

Connect with Rob and Greg: 

Rob’s Website

Greg’s Website

Resources:

Justice Department Withdraws from Settlement with the National Association of Realtors

Biden’s Executive Order on Promoting Competition in the American Economy

NAR Code of Ethics & Professional Standards Policy Changes

REALTORS Political Action Committee

Phillip Cantrell on The Notorious POD EP017

Our Sponsors: 

Cloud Agent Suite

Notorious VIP

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: 

Rob’s Website

Greg’s Website

Resources:

Blockchain and Real Estate on Notorious POD EP022

Propy

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

Knock Home Swap

Orchard

Tomo

Rob’s Post: Do the Rich Need Buyer’s Agents?

Our Sponsors: 

Cloud Agent Suite

Notorious VIP

With the news today that Brad Inman has sold his company, Inman News, to a Canadian private equity firm I thought it a good time to reflect on his accomplishments. First off, it must be said, Brad is an amazing entrepreneur. He started Inman News in 1996, he followed that up with HomeGain, which he later sold to Classified Ventures. He then turned his attention to video on the internet with TurnHere and ebooks with Vook. He was also the first investor in Curbed. Starts and stops? Yes. Rough patches? Absolutely. But he did these things and so many other things while keeping committed to Inman News and growing it to the “newspaper of record” for the intersection of real estate and technology.

But Brad didn’t just launch his own companies, his influence touched and helped so many others. Trulia was literally started in the halls at an Inman News conference by a couple of Stanford students with comped passes from Brad. Those students went on to sell Trulia to Zillow for $3 billion dollars. The community he built is amazing. He not only helped launch companies but, careers. You’ll see Inman News alum go on from the Inman Connect stage to start their own companies or hold key positions at some of organized real estate’s most innovative companies.

Sure he had some haters. Anyone who achieves the kind of influence and success in the arena that Brad has will always have those types of spectators. But he continued to stay true to himself. Bolo ties, funky hats, and all that jazz. Or should I say Yaz?

For brokers, vendors, and forward-thinking agents Inman News and conferences are the places to see and be seen. His keynotes always set the tone for the industry to follow. As an industry news junkie myself Inman News is the first website I bring up on my phone every morning. And being recognized by Inman News in 2016 when Dan and I won the “most innovative technology award” for Cloud MLX was one of my most proudest moments.

Over the years I’ve gotten to know Brad and grown to more fully appreciate and respect Brad’s accomplishments and the positive impact he’s had on the real estate industry. We’ve shared many a cocktail over Zoom during the pandemic, and I just love the way he says “pal” in an old-school Walter Winchell type of way. So while I’m happy for him personally for this news, I’m still a bit sad and reflective. Yes, I know he is still has retained some ownership in the company, and that he will stay “involved” but you can’t help but feel this is a turning point for him and the rest of us.

And that brings me to this last part. Gratitude. Thank you Brad. Thank you for making me think. Thank you for helping me grow my business with your curiosity and encouragement. Thank you for creating a platform and wonderful experiences where I could connect with my colleagues, friends and meet new ones. Thank you for pushing the industry I love so much to move forward.

Onward my friend.

#thankyoubrad

Customer onboarding coordinator – FBS

“FBS is looking for a skilled and enthusiastic communicator to work as a Customer Onboarding Coordinator. The Customer Onboarding Coordinator will support our Customer Onboarding process, both in communication with the customer (phone, email, and virtual meetings) and in configuring the Flexmls software to meet the customer’s needs. This position can be based in our headquarters in Fargo, ND or can be fully remote for applicants based in the United States.”

The find out about this job, or post a job, please visit the Vendor Alley Job Board.

#jobboard

I know that this video has been circulated by CMLS and others but I also wanted to put it out there as a great resource. Many thanks to Richard for putting this information together for the industry.

???? When is the music going to stop? The market, the consolidation, the money. It feels like organized real estate is playing a game of musical chairs and it’s exhausting. One hour. One Topic. No recording.

Join the Alley Cats today on Clubhouse at 3PM PT by clicking this link on your mobile phone -> Alley Cats on Clubhouse – “When will the music stop?”