The real estate industry is no stranger to change, and recent developments have certainly made waves. The $400 million settlement involving the National Association of Realtors (NAR) has sparked new discussions about buyer agent commissions and the future of real estate transactions. To shed some light on these changes, I had the pleasure of interviewing Tristan Ahumada, CEO of A Brilliant Tribe and Lab Coat Agents, who offered valuable insights into this evolving landscape.
In our conversation, we delved into the case of Josh Sitzer, the plaintiff behind the NAR settlement, who has recently launched a new venture—a discount buyer agent platform called Landian. This startup aims to disrupt the traditional real estate model by promoting lower-cost buyer agent services. However, the approach taken by Landian raises some eyebrows, and not in a good way.
Sitzer's website uses fear-based messaging to convince potential homebuyers that they need to work with his agents to secure a good deal. It suggests that buyers must pay for agent commissions—a claim that could certainly be considered misleading by many. The site goes further by promising buyers they will "save thousands of dollars" and even features a calculator showing buyer agents charging a 3% commission fee.
This presentation implies that the 3% fee is a standard, set-in-stone cost that must be paid by the buyer. This is absolutely false and very misleading. The truth is, even after the lawsuit, most sellers continue to cover buyer agent commissions, and buyers are not required to pay this fee out of pocket.
In our discussion, Tristan and I explored the implications of such tactics. Is this a clever marketing move, or is it an opportunistic ploy designed to capitalize on buyer uncertainty? Tristan, who leads a renowned coaching company for real estate agents, shared his perspective on the ethical responsibilities of agents and the importance of transparency in real estate transactions.
If you’re curious about the future of buyer agent commissions or just want to hear more from one of the brightest minds in the industry, I encourage you to watch our full interview above. Tristan offers some incredible insights that every real estate professional should consider as we navigate these changes.
For those interested in learning more about Tristan Ahumada's coaching programs or seeking guidance in the real estate industry, you can visit his website at A Brilliant Tribe. Tristan’s expertise and dedication to helping agents thrive make him an invaluable resource in these uncertain times.
As we continue to monitor the shifting landscape of real estate, it's essential to stay informed and cautious. While new platforms and services may seem appealing, it's always wise to thoroughly research and consider the broader implications. Remember, you have options, and transparency is key to making the best decisions for your real estate journey.
Hope you enjoyed the video and this post. If you ever wanted to chat with me, Frank Garay, about anything at all, feel free to grab a day and time with my by clicking on the calendar image below!
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