🚨 🔴🎧 NAR Plans to Appeal $1.8B Commission Lawsuit Verdict car repossessions and home foreclosures rising? - State of the Market SAN JOSE 40DOM. 🦅 🌎 ⚓️





🚨 🔴🎧 NAR Plans to Appeal $1.8B Commission Lawsuit Verdict car repossessions and home foreclosures rising? - State of the Market SAN JOSE 40DOM. 🦅 🌎 ⚓️

 Good morning. Lots to talk about today. Lawsuits. The car industry is imploding and yeah I really want to just talk about this lawsuit. I think it's, we needed to have this lawsuit. I think it was something that our industry needed for a very long time to shake it up. And Make sure that we understand that people who are in this industry are not here just for the money.


So standing for a very long time, since I got into it, I realized that realtors didn't have a great name, just like lawyers and car sales. And, it's a professional service. And my problem with real estate has always been that. It's been a very low barrier to entry compared to other businesses compared to other industries, right?

You could set up shop pretty quick, and get your license. It's really easy to get a license. And that happened, what happened was it made it so that the lowest 10 percent of pretty much every industry trickled into real estate because it was just so easy to get your license. And that's always been a problem.
Like in California, you only need three basic classes there. They can be online classes and you don't, there's no grade on those. You just go through them and then you have to study for an exam. You have to pass the exam with 70 percent you have to see plus you have a C average to get a test and yet people don't pass it.

Not bragging or anything. I was the second guy out for my agent's exam. I don't know what my score is cause they don't tell you what it is, but I studied it and it did not prepare me for real estate. There are basic questions like four, three, five, six. Oh, is the square footage of an acre. It's 140 acres to a square mile.

Things like that. Yeah, you use them, but just, they don't really prepare you for marketing and networking how to do a transaction, and how to represent your clients correctly. It's just basic questions. And that was always my problem with it. So we see all these people coming in, especially when the market's hot and the market swells, and there are tons of agents out there, not necessarily doing the right thing or representing the client the right way, they're just in it for the quick buck and in real estate, you can get a quick buck pretty easily, right?
So that's been my problem for a very long time. And I've always maintained that it should be real estate if you practice real estate, it should be a minimum of a master's level degree to practice it. We're dealing with millions of dollars of other people's money. Just, just like a lawyer or a doctor, you should have to go through school and have a degree and be a prevention professional in every light where over the years we've evolved.

What we have today. Part of that starts with the largest union or the second largest union in the United States, which is the National Association of realtors next to the national rifle association or the Lobby lobbying union or whatever you want to call it. And I've never been a fan of NAR and they are, it's always been for themselves.

They never really washed out for us. Yeah. They might call themselves a consumer advocate, but yet We have let's open this thing up right here. All right. After losing a high profile verdict, Realtors Group was hit with the largest lawsuit on agent commissions. Now, why is that important to you? Because they maintain that we conspired as an industry to keep commissions high.
I have some problems with that. Yes. And no, maybe the groups or the companies required their agents to have a certain level of high-end commissions, right? 6%. That was what they leveraged in that they weren't high, but in fact, the average commission over the years has actually gone down by a small percentage by 10ths of a percentage over the last couple of decades, because there are so many people that are in the business.

And there's a lot of people, a lot of agents that will do it for a flat fee. There are flat fee servicers, and there a discount servicers. There's a whole industry of different ways to choose. Now, a company might decide to go to business and say, we don't want that business. We don't want to deal with the people with home sellers that only want to do 1 percent commissions.

Great, right? These lawyers came and said, Oh, you guys are charging too much. And maybe maybe it's something where some companies require their people to say something a different way. Right now, I don't know exactly how they did it. I can tell you that the lawsuit that was lost to NAR, Keller Williams, and home services of America was also included in this for a 1.
8 billion verdict. I know that REMAX settled out for like 53 billion, 53 million. because they just didn't want to be a part of it. They said, you know what we've done. So that was the first straw that broke the camel's back and came down crumbling. And. Yeah, so Keller Williams is part of that.

I don't know exactly who's, but here's the problem with this, right? It's a class action lawsuit, and I have options to be a party to many class action lawsuits, especially going against the military. I served at Camp Lejeune. I see those commercials all the time. I have hearing loss. There are class action lawsuits.

And here's the problem with that. The plaintiff, the individuals in the class action lawsuit, in any class action lawsuit, typically gets anywhere from 5 to 30%. They get mere dollars after having to pay taxes and all that other stuff. They get dollars over all this angst and issues to hurt another entity.

And Not saying feel my woes, but the lawyers that are doing these class action lawsuits, there's, they're the ones that are punitively hurting other industries. And they're making out with 30%. So 30 percent versus 6%, I don't know. I think they're making more money off of this than anybody else.

Just my point on this one. This is just the way I'm looking at that.

Going back to NAR, I said, I've never been a fan of them because I don't really get a whole lot of benefit for paying the dues and my MLS requires that I Be a part of NAR, N A R. And if you don't know, it goes national, state, then local. And mine happens to be SCORE, Santa Clara County Area Association of Realtors.

And they require that I pay dues to the California Association of Realtors and the National Association of Realtors. And I do use CAR. I use CAR a lot. I think it's a fantastic service. They do lobby inside of the state, but NAR tends to push their way around. They do a lot of things and it's just a big money bucket.

And they've had a lot of bad news lately. Their CEO got fired or was asked to resign for sexual allegations. sexual abuse allegations. I don't know if that's true or not. It's not really my business. I don't really pay attention to that kind of stuff. But when it comes to a national association, the second largest association, or the second most powerful lobbying group in the United States, they're only feeding themselves.

They're not really, they say they are for the consumer. They say they are for the individual agents, but I don't see it. I don't see a lot of value in that. So I'm now shopping around looking for another MLS within my region that allows me to not be a part of an AR. And that's, that should be an option, especially after this, I don't want to be trampled in with this, all this stuff.

Now, let's talk about choice, right? Commission. And we were taught that in the test from day one, commissions are always negotiable, right? Between you and me, I decide what I'm going to charge. And if you decide you want to work with me, That's great. And there are other people out there. There are also smaller companies out there.

There's help you sell and assist to sell. And 1 percent are companies out there all day long. And other agents do 1 percent all day long. And they have a great business. They're busy as all heck. I have been rolling this out for the last couple of years. I've always maintained that.

You have your choice, right? I want to make sure that I'm not trying to sell you on anything, but I want to make sure that you do have a choice when it comes to working with us and we can go 6%, 4%, whatever it is. My job is to make sure that I represent you the way you want to be represented. I'm not here to pull strings.

I'm not here to talk smack about other companies. I'm not here to, I'm just here to help you. Sell your house. I am a Sherpa. I'm a guide. I'm get over here I'm here to give you your choice on how you want to be served and then I'm going to serve you as a Client. I'm your Sherpa. I'm your guide. I help you get up the mountain of selling your house or buying a house That's it And if you think that I can you can do it for one percent or one and a half percent great.

Let's do that

Don't expect me to jump through the hoops, bring in my project manager, get in all these, and bring in the service to make sure we do it. There's a level of service that I offer that gets you on the MLS and that's it. We don't do any repairs. We don't do any staging. We just get it on the MLS.

But if you want full service, bring in proper project managers, bring in contractors, and we manage the whole thing for you. We even bring in movers so you can interview them. Move your utilities over we do a whole slew of different things to help move you and get you into the next house It's completely up to you how you want to do it if you want to do it all yourself Let's do it.

No problem. Now because of that, Oh this one's actually one of the reasons why I left Compass is because they, I felt that I was bait and switched, right? I came in with a specific commission split with them and certain fees. And the next year they. Changed it on me and I didn't agree to it.

And yet they still did it. And then the next year they increased my commission's commission split on their side. I just didn't like how they did it. Now I didn't really appreciate the little software package that they made us use because it was really confusing and complicated and it only did a small portion of what I needed to do in real estate.

Cause in real estate, there are, I want to say 20, 25 different software programs that we use to make sure that we go along and sell your house from contracts to marketing, to CRM, to outreach, to everything. And it just didn't work for me. Just didn't work for me. It's nothing against the company, nothing against the managers that I worked with, or the people in the office that I worked with.

I thought they were all very professional. So there you go.

So I understand that.

Yeah, this is it right here. I think this was it. Yeah. Oh, there you go. So on top of everything else, now that this is first any, our plans on appeal this 1. 8 billion lawsuit. So now they have this lawsuit to appeal, but now those lawyers are coming back and suing. Compass, Redfin, EXP, and they are again, EXP World Holdings, Redfin, Weikart, and United Real Estate, and Howard Hanna, Real Estate, and Douglas Elliman, Ketschmar, and, yeah.

Now that the dam has a crack with water coming out of it, they're going to come in and change everything. I don't know how this is going to change out, right? My option... My option thing might not even be allowed anymore. I have no idea. We have no idea where this is going. I don't know what's going to happen.

I don't know what's how it's going to go. But here, the other part too is you have FinTech that's coming in and saying, Hey, this is great. Don't use realtors cause they have a bad name. Use us and we'll help you out. You have to be very careful when you sell your house through them. Cause one, you don't know what the open market is.

The market will give you the right to, they're going to come back and give you other fees could be 6%, could be 10 percent on top of selling their house. And then they come back and negotiate repairs and damages. And you wind up getting screwed a lot of times. Not a lot of people walk away with open doors and they're happy.

And they're done. The problem is how are you going to get to the next house? Once an agent finds out they're going to be less motivated to work with you. So I don't know. A lot of things are coming down the pike. So we might not be around in five years. I don't think NAR is going to be around, or if they are, they're going to be pummeled down into a little puppy.

A brand new little puppy thing or an old dog, not knowing what's going on. They're going to lose their power in lobbying. They're going to lose their power as far as being an advocate for the consumer and the agent. I think there are a lot of things that are going to happen. And that's too bad because they lost track of lost sight of who they were.
And I think their best days are way behind them. Again, you always have options. It's always negotiable and it's negotiable for me to work with you too. If you come at me and say, I'm only going to pay you half a percent and I demand this, and this. My decision is I don't want to work with you.

I'm busy. I'm happily busy Gratefully busy, but at the same time, you know I choose who I want to work with because if you're going to be very demanding and you're not going to listen to me and You're not gonna let me do my job as a Sherpa. Sorry, you're not gonna let me do my job as a Sherpa then we're not Yeah, it's just, it doesn't work.

I've been through that with many, a few people where I've had horrible clients that just were not humble and they thought that they knew better and they wound up screwing themselves and blaming me. So winds up where I have a very fine niche of people that I work with and I am pleasantly busy speaking.


reports are coming.

Down the pike. I keep mentioning this. Why do I keep mentioning it? Why do you care? Why would I care about talking about real cars automotive? It's one of the main indicators in our GDP, in our economy that
there we go. I'm going to go over here. There we go. It's one of the main indicators of our economy. And it's also a stack of the House of cards, right? If you look at medical automotive, real estate, and tech finance. Military. Those are, this is one of the most delicate parts of our GDP right now our economy is tilting right now while everybody says that I'm unemployment's up our economy is doing great and the stock market's doing great.

We're seeing things like inflation and all sorts of indicators that are happening that are making life. A lot more difficult for the average American. So I think our average income is 70, 000 a year. And when you look at that, it makes it really hard to pay 9, 000 a year in car payments on top of insurance and maintenance et cetera.

And you'll see, I've seen, I've pushed out multiple videos and articles on how the Use market is coming in with a lot of repossessions or cars just simply turned in because somebody will buy a car, pay 1, 000 a month. And then all of a sudden they get into an accident and their insurance doesn't cover it because they got the bare minimum.

By the way, we have I'll put a link there of an insurance guy that'll. That's an insurance broker who helps you walk through the process of making sure you're fully insured, not getting the bare minimum for your house and your car and everything else. So why is this happening? Because people are overbuying, they're getting cars that they can't afford.

Not everybody, right? Just the bottom 3rd percent of the company, the country can't afford to have a thousand dollar a month payment on top of insurance and maintenance and gas. It's just become a thing where I'm just going to get rid of it. I'm just going to get rid of it. I'm just going to turn it back in.

I don't care about my credit. And we see it happening over and over again where delinquency will happen.

Repos will happen. And we're going to see this as one of the possible indicators or cards that fall that bring down the house of cards in our economy. So just keep an eye on the automotive industry. All right. Gold prices are shooting up. I heard somebody in a podcast a couple of days ago saying, I think gold's going to get to 5, 000.
I don't know anything about that. I don't know. I'm not. I'm not a finance guy, but I can tell you that I remember a couple of years ago when it was 1300, I wanted to buy it and I was told, no, don't bother. Don't worry about it.

You'll be fine. It'll be back down to when it was in 2016, 2018. I was like, I should buy it. I should buy it, but who knows? It could come back down, right? It could come back down. Who knows all the data. Let's take a look at this 2004, 30 years. And this goes back to 2004. Okay. There you go in 1994.

See, back when it was below 500, that's good times. Okay. Really quick, nothing special happening here, right? Inventory is still low.

State of the Market

We had a lower amount of closes, but that's because it's fall time. It's getting into winter rates are high. So we're not going to have as much, but we don't have that much inventory either. We just don't, we don't have this right here shows that we're at a low lull in inventory. We need more inventory, but demand is outpacing the inventory, the supply.

If you look at last year, we had 79 closes versus our 58, 73 percent down last year. Our average sales price is 1. 6, three, four this year. It's. 1. 661. If you look at the averages, we're only 45, 000 away from each other. So on average, we're not doing too bad. If you look at the average over the last couple of weeks, I think we're doing okay.
We had a pretty big dip here last week and then last week. So jump up and down, which is why I keep going back here. The high was 133 over. We have out of the 58 closings, we had 43, 46 homes sold over the list price, which is 79%, 80%. So on average, it's really 65%. There's our mark market is 13 versus last year's 32 19 percent or 57 pending this last week, which is again, it's coming down.

I agree. This market, this is the season where we see things slow down, in November, December, and January, things tend to slow down. And then February, March, April, May, that's when we see it ramp up. So I think we're going to be okay. We'll see rates go up a bit and then come back down. I think by February next year, we're going to see rates start to come down.
We had 24 cancellations and 28 TFTs. This again, is not worrying to me. Cancellations, withdrawal expires. We're seeing our 90 days go up. Quite a bit. Although it shrinks quite completely, mostly because we canceled, we also have more houses on the market over 40 days. Pricing is important. When you go to sell your house, sell it lower, list it lower, and you'll attract more people.

That's it. All right. Again, guys, I don't know what was going to happen with this NAR thing. Negotiation commissions are negotiable. I think we're going to see NAR lose its power, which I think is a good thing. I think we're going to see our industry restructure. And I always maintain that we should make our industry a master's level degree program.

That's it's that's the only thing I could tell you is that will trickle out the lowest common denominators, the people that are coming in for the quick buck and I'll give us another. Reason to be that much more professional. All right. Keep an eye on the automotive industry. I'm Vito Scarnecchia with Abitano.

We'll see you out there.




Campbell, San Jose, Silicon Valley, retirement, empty nest, Financial Intelligence, Best Realtor Santa Clara County, Google Jobs, apple careers, Apple Jobs, meta jobs, Hewlett Packard, Oracle, Intel, Cisco, Facebook, Broadcom, Adobe, eBay,


Vito Scarnecchia

Realtor®, Broker, Veteran, Dad

DRE#: 01407676

408-705-6817

Vito@abitano.com

Website: abitano.com https://www.onereal.com/vito-scarnecchia-1

update your home value: https://hmbt.co/bT7qRJ

Comments

Post a Comment