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The kingdoms are amassing their armies... of lawyers 🦅 🌎 ⚓️ NAR ‘bled Realtors dry,’
The armies are amassing. There are so many little squabbles, large squabbles that are going on right now. It is better for me just to keep my head down. A lot of my political friends always chirp up about civil war and all this stuff. I'm like, I'm not shedding blood for what's going on in the political realm.
This country is going to civil war. I am moving out of the country for a little bit until it all settles down because this is just ridiculous. And quite frankly, I don't either, but I need you to know about this because the reason why this is important is that it could affect you. It could affect the way we do business. It could affect you as a consumer or home buyer, or home seller, and that's why it's important. The big kingdoms are coming and trying to pull their power and amass their power against other companies with anti-law or antitrust and competitive this and unfair that.
It's amazing how things spark. A little over a year ago, we had this big NAR lawsuit saying that commissions shouldn't be. Bound together by one broker. It should be the buyer's agent who tells the seller what they want to pay, and the listing agent stays out of it. Now, what's happening is the big companies are doing things that are antitrust, anti-competitive, monopolistic, all this other stuff, and it's going to affect you.
Zillow's Business Practices Under Scrutiny
Lawsuits accuse Zillow of deceiving home buyers.
Whether you like it or not, when you go onto their website. You say, Talk to an agent, Your assumption is that you go and talk to the listing agent. Most people want to talk directly to the person who's in charge of selling that house, not just some random agent from another brokerage.
But that's what you get because the way that's set up is that Zillow makes 40% off of every sale that an agent works for them. They'ree a brokerage. They're not just an aggregate site, but they don't have a lot of agents. They have some agents, but then they click on it, and then they would send out your number to some random agent who's paying for this service, and then also agreeing to pay them 40% of that commission.
So your commission. If you're working as a buyer's agent, you will go higher. Gone are the days when you can negotiate down the buyer's commission, because when it comes like this, I'm not gonna give you 40% of a thousand. I'd rather give you 40% of 5,000. Buyer be damned, consumer be damned.
This lawsuit is about. Compasses exclusives, which we already talked about. I don't think it's a fair deal. I don't think it's a good thing for you to put your house on an exclusive list because you're not exposing it to the entire market. That's my point. Zillow says it's a misleading prospect of buyers and contacting agents, working with Zillow and not the agent who listed the home for sale.
If I have a question about a listing, I go to the MLS. I go and talk to the listing agent directly. But as a consumer, you may not know that, and that's what the problem is here. So there's a lawsuit there. And then Zillow says, Compass, we're not legally required to work with you. So this is the counterpoint. You say, I have no responsibility, which you do with your business. If you don't wanna work with us, we're not gonna work with you. If you decide that you're gonna come and work with us, you have to work with our ways.
Otherwise, we're not gonna work with you. And this is Zillow, which is the top real estate site against Compass, which is now. Going to be the largest community of agents, 'cause yesterday I told you that they're buying anywhere, which is the second largest company out there, which is a holding company for Century 21, Coldwell Banker, all this stuff, they're buying that for a couple of billion dollars.
And they will have a monopoly basically on this. So you either work with the kingdom or you work with the blacksmiths and the actual experts, et cetera.
Compass is not, to date, from my knowledge, to turn a profit. Their only business is to accommodate and report to the stakeholders and stockholders of Compass.
That's all they do. They call themselves a technology company, but they're still not profitable. They buy, buy, buy. I don't know how they do it, other than the only thing that's keeping their company afloat is the stock, 'cause they're not turning a profit. Zillow, I don't know much about them. I don't pay much attention to them.
During the call, Mr. Coleman expressed support forSillas's decision, indicating that Redfin would likely consider a similar policy, meaning that's cartel work. That's called, that's a conspiracy, that's a threat of conspiracy.
Compass has been waging a campaign against market transparency to the detriment of consumers and agent Zillow. By contrast, it has a long history of providing transparency and equal access to real estate information. Yes, they give you free information, but their business model is to take 40% profit from the agents that work with them, like it or not, right?
What Compass is saying, this case is about protecting choice. No single company should have the power to ban agents or listings because they don't follow that company's business model. That's the fight. That's fight number two. All right. Monopoly claims.
There's antitrust right there. We already talked about it. Different things, right?
NAR and Realtor Associations: Monopoly and Antitrust Concerns
On top of everything else, there's another lawsuit against NAR, which is saying that there's an antitrust suit against the realtors, poor US little realtors, right? Meanwhile, the broker is suing NAR, alongside state realtor associations, by alleging that the monopoly power over multiple listing services and essential business tools constitutes a metastasized cartel and is bleeding realtors dry. The way it works for me, I have to belong to an association. I belong to the Santa Clara County Association of Realtors. For me to access, I have to agree with their policies, which means I have to be a member of the California Association of Realtors, and I have to be a member of the National Association of Realtors. I have to belong to those unions, which gives them the power to do whatever they want. I have no access to 'em.
It's just another tax that I have to pay. Do I get value from them? Not really, I get some from the car. I just redid my continuing education through them. They have legal counsel to make sure that I'm doing the right thing, but I also have a broker and a legal team on that side. Anyway, it's not really. Should I have it?
Do I want it? I believe that the NAR doesn't do right by the consumer. They don't do right by the agent. I'm not really familiar with what's going on with the difference between the associations, the state associations, and the national association. I don't really pay attention. I don't see the value of what NAR does other than they're a huge union, one of the most powerful unions in America, that controls the politicians.
So they're on, lobby. Union and they take our money and focus themselves on making sure that however they wanna do real estate is done by policy, by structure, by law, et cetera. I don't know if that really helps you as a buyer or a seller. I think they're self-invested. But that's just my opinion. Associations as cartels, which Whitman alleges that associations are predatory gatekeepers who restrict access to essential business tools unless agents and brokers pay for memberships. The state membership and the national membership, not only at local, state, and national levels, but across local jurisdictions.
That said, California's. The largest real estate state in the union, I have access to probably 70% of the MLS and MLSs across the state; there are multiple listing services that are across different states. There's Metro List, Raponi, all these different things that are out there. Every region has its own.
MLS, and they restrict access unless you are a part of that. Union Whitman pays a thousand dollars in annual dues. I pay much more than that to two local realtor associations that funnel part of the money.
The Cost of Doing Business as a Realtor
And they're not crippling fees, right? I mean, look, if you're an active agent and you're doing business, yes, it's a tax, it's painful, I pay a thousand dollars for new tires today, right? So when you put it into the big picture of things. The fact is, A thousand dollars is a lot of money. I don't care. But if you're running a business and as a realtor, you are running a business, you're running a mom and pop business, I don't care if you work for Compass, which is the big monopoly kingdom, or you work for real, or you're an independent broker, you run your own.
Self as an independent contractor, as a business, it's not a scalable business. It's not something where I can create or duplicate myself and scale myself out. There are teams. There are groups, but those don't really work out that well. In the big picture of things, a thousand dollars is 5% of my budget.
2%, 3% of my budget of marketing and running my business and everything. I put money into my business to watch it grow just like any other business does. Right?
Microsoft spends billions of dollars on advertising every year. They spend billions of dollars on labor. All this r and d, and they have to reinvest money into that company to continue to grow and continue to develop new products. That's what this is. So a thousand dollars of that NAR may get two or 300 bucks.
On the whole, it's an aggregate, huge amount of money, and we're talking about billions of dollars every year. You're a part of a union, and that's what you agreed to. Okay, so enough of this.
What is this? What is, oh shit. I didn't even realize this.
Screen, man. Man, eh. All right. Martha Street, what is this? This is 90 days on market, I think. Oh my God. Yeah. 90 days on market, Martha Street, 8,880 $8,000 for a three-bedroom, one bath, 900 square foot house. And mind you, it's only 4,400 square feet, which is about half of what a standard lot is worth $888,000. On top of that, if you look here, it's right by two 80. It is right, right down the street downtown, living right there, 800. This is I wouldn't pay a hundred thousand dollars for this. There's only one picture. It's been on the market, 92 days, a bedroom, one bath. I can't give you any more information about this other than.
This thing needs to be torn down and have a little tiny house put on it, or a couple of different houses on it. They just tore down a tree. It's a dirt lot. This thing's a hundred years old. I have no idea why they're doing this. I could see why they want to do the value here.
But to me, this thing's a piece of dookie I would never even look at. Remember, when I'm telling you like as a consumer, as a buyer, you're looking at four or 500 homes and you whittle it down to a hundred, and then of that, there's 10 or 20 that you might want to go look at. You know that you tell your agent, Hey, I want to go look at these 5, 6, 7 houses, or there are open houses.
This, we can all just go; this one gets skipped over so quickly because of it. Everything about it. Maybe at a hundred thousand dollars. Okay. RO of the week, Dwayne Ave. This is pretty new on the market. 22 days on market. This is a townhouse, four bedrooms, three and a half baths, 1800 square feet.
Let's take a quick look. In here. Okay, so the first part of this is that they staged it. Great. They put the money in, right? If I were an agent, I would do that. I would put the money into it, get it staged up. But why in the hell are you not doing the front of the house first? It's ridiculous. It's ridiculous. You have to go all the way down to the bottom, look at the garage before you even see what the front of the house looks like.
They did this completely bass backwards.
I mean, it's a pretty house, and it's a great layout, but switch it up. If you were watching this agent, you should switch this up. I was gonna give you the quick floor plan there. I don't know why it didn't do that. Garage, first bedroom. Your entryway is here. You go downstairs to get to your fourth bedroom, which is standard. You have a half bath here, and then this is the third floor.
Primary bedroom, walk-in closet. You have your bath. It's nice. Second bath here. You have a two-car garage, right?
And it's $1.7 million. Good luck to whoever wants to buy that. This allows you to compare and contrast different houses and look at different houses inside every house, so you can look at the laundry, landscaping, the art, air conditioning, kitchen, et cetera.
This allows you to get more information. In a short amount of time, and then compare and contrast when you're at home, and you can discuss it with your other person and decide which house fits your needs the best. I designed this one so that you can take it and run with it and make your life a little bit easier.
Because when you look at four or five houses, everything gets mingled up and jumbled, and you forget which house had dual pane, which one didn't, and which one had air conditioning or which kind of kitchen. So download that checklist today.
Cupertino and Mountain View Property Highlights
This is Cupertino, House of the Week. Four bedroom, three bath.
This one right here caught my eye because I thought that this was a perfect way to show off your first picture of a house. This is nice because you get a 500-foot view. It's really like 30 30-foot view, 40, maybe 50 view of what that house looks like. It's nice curb appeal. It's not the perfect lawn, but it gives you a good idea of what that house looks like.
Not like this thing right here, where you look at that, oh, it's a townhouse. Great. Nobody cares. This allows you to see, this is a nice, substantial house. I like it. This is Flynn. Way new on the market, not my listing. $3.3 million, four bedroom, three baths, 1,952 square feet, built in 1961, and is very well maintained.
You can just look at that house and get that feeling of, oh yeah, this house has done well. And you look at it, and it has Nice counters, nice kitchen, nice cabinets. I'm not a fan of the dark brown. The wood floor was sanded down and redone. Looks really nice.
Nice bathroom. Not a big fan of big, black, dark bathrooms, nor the silver. Maybe they're a Raider fan. Not sure. I don't know.
They have a Costco pergola, which is great. Love them. They're a real pain in the ass to put together, by the way, and then they have, yeah, a little hot tub. This is a great house. This is a great value. $3.3 million. You're working for Apple, this is a great opportunity for you to walk to work every day.
It's not even a mile. And then Mountain View home of the week, I picked this one 'cause of its proximity to Castro Street, because you know how I like downtown Main Street, USA Localities. This one is an older house built in 1945 on Fairmont Ave. Not my listing. 2.1 million three-bedroom, two-bath, 1,275 square feet, one-car garage.
I don't see cooling.
None. Yep. See, no air conditioning. Guys, yesterday was proof positive that, oh, I see a little silhouette of a. Shadow. Never mind that, that was a stain water drip. Oh, nice look. Original kitchen. How much is this? $2.1 million for an original house. I'd rather move to Cupertino than this, eh? There you go.
I mean, look, when you're buying a house, you have to look at the complete value of it and look at surrounding houses, and if that's your budget, this might fit your needs, but this house needs a little bit of work to make it updated. We're at 2:85.
Market Trends and Final Thoughts
Nothing's going crazy here. I can show you right here. Nothing's going out of the ordinary. Nothing for us to really worry about. For sales, we're down from the summer heat. The selling season, we're not gonna see a huge pickup, I don't think, in inventory this year or this fall because rates aren't coming down fast enough.
But on the big picture, on the economy, we're dropping a rate just to keep the economy flowing, see what happens in October. Nothing crazy, crazy going on. Back on the markets. Nothing's jumping up. If you look over here, back on the market, Santa Clara County, we're 77 total over the last seven days. 13, withdrawn. Five were canceled. So yeah, we have a good number of homes that are falling outta contract, and that's because buyers have their way.
There's multiple options for buyers right now, 'cause there are not a ton of buyers out there and a whole lot more sellers, even though we're below our numbers, where we need to be for actives. San Jose should be a thousand plus or minus. Santa Clara should be about 2000 plus or minus. But even during the summer when it went up, we saw it get close to 1700.
It was still a balanced market, not necessarily a buyer's market, 'cause a buyer's market is six months. That means prices are falling. Buyers are jumping in and taking.
Sellers are still being persnickety because there's no need for them to sell right now. There's no need. They have two and a half percent interest rates. They have equity in their house. They're comfortable. Yes, some homes are selling, as bank loans. People are giving their homes back to the banks. They can't afford it 'cause they got laid off.
But that's a very small number. It's a hugely small number. There are only 68 in the Bay Area. It should be like 6,800 back in 2008. When I say it's 68 in the Bay Area, it's spread all over, and we only have a few here. There's one in Mountainville, Sunnyval, and still, and then one here, which we talked about last week. That's all we have. And then you have to go all the way up here.
Oakland, it's always a shit show, and there's a huge bunch in Antioch, Concord, et cetera. This is a great area to buy in if you can afford it. If you wanna move, if you can bremotely and still want to be in the Bay Area, Vacaville, Napa, Fairfield, Vallejo, these are great areas to buy into right now because they're depressed.
Days on market are high. The list price to sales price ratio is lower, and this is the high-volume area. So if you want to live close to where you work, you're gonna pay for it. All right. That's it for now. Thanks for watching. Appreciate the one person that's on the show right now watching me, one person, but it's seven o'clock, so I got it.
I'm Vito with Abano. Thanks for watching. We'll see you out there.
🔴 Insurance Adjuster What You Should Know https://youtu.be/8IWgof1qvnc
🔴 Renters losing MORE than Rent! (Bay Area Median Home Prices) https://youtu.be/VwLrwX2YuHo?t=41
If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents!
🔴 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg
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