🔴 real estate giant settles lawsuit | REO of the Week | Mountain View Home of the Week
https://blog.abitano.com/2024/02/real-estate-giant-settles-lawsuit-reo.html
🔴 real estate giant settles lawsuit | REO of the Week | Mountain View Home of the Week
Wow.
Real Estate Lawsuit Overview
Real estate giant settles 72 million class action lawsuit. Crazy times that we're living in guys. On top of that, we're going to look at the REO of the week, mountain
Introduction
home view or mountain view home of the week and a market snapshot for San Jose. Let's take a look and see where we are.
There we go. All right, let's get into this. If you haven't heard of Keller Williams, which is one of the larger brokerages out there, franchise brokerages settled for 70 million in an antitrust settlement. Now, if you haven't been following it, if you haven't heard about it and I haven't heard me talk about it.
There's a bunch of lawsuits that are going on right now about how we handle commissions Traditionally, we always tell people. Oh, we just the buyers paid the buyers. They were just paid by the seller. Don't worry about this and that Some people got their feathers in a bunch
And they decided to say that's not fair.
Implications of the Lawsuit
A couple things, right? I'm all for change and I'm all for making it right and fair and equitable to everybody Now the buyer has to pay the commission. Not yet But it's still assumed that we're still doing the right things, but it's the way they were handling it Don't worry.
The buyer's agent gets paid by the seller And the nuance of this lawsuit is well, no the buyer pays the money It comes out of the proceeds of the seller But the buyer still pays The buyer's agent fee as well as the seller agent fee as well as all the closing costs because it comes out of the proceeds that are minutiae.
It's a lot of money. It's you know, it's a class action lawsuit And if you haven't heard what's going on There's one in Missouri that settled out and it was like 4, 600 plaintiffs Let me see if I have that number here Yeah, right here. It was, oh, sorry, 26, 000 plaintiffs. Of that, they made 1. 8 billion.
Now, I don't know, again, it wasn't disclosed as to what the class action lawyer is going to make on it. So it could be 10, 10%, it could be 5%, it could be 30%. It doesn't matter. The lawyer, the law firm gets 360, 000, or if it's 10%, they get 180 million. That's legacy money right there. That's just a lot of money.
That's going on. Now, if you're one of the plaintiffs, you get a whole whopping 6, 000 out of it. And then you have to pay taxes on it. So really nobody wins and a lot of people lose because of what's going to happen. What could happen is that the buyers now have to pay the buyer's agent commission.
And that surely would happen in a VA or USDA, but then the V the veteran. Using the VA loan isn't allowed to come out of pocket for any extraneous fees, which means the buyer's agent is an extraneous fee. So where does that leave us? We're overpaid. We don't get a commission. We don't get a salary.
It's run like a business. So if you go and buy a sandwich at the store, which is like 18 now, the owner has to split those costs with everything, right? The broker, the transaction manager, marketing, all sorts of stuff. Cost of doing business, professional courses, continuing education, and they have to live off of that.
So yeah, we do make good money, but at the end of the day, it gets whittled down to not a whole lot of money, especially in places like that. California has a new lawsuit on it. We're, they're fighting it. I don't really care. I want to make it fair and equitable. I think the best thing we can say is change is good.
But Remax settled out a couple months ago. Another company settled out, I believe, and then Keller Williams just pulled out and said, yep, we'll settle out, give you 70 brokerages, which is why I stay away from the large brokerages because they're just big, huge lawsuit targets. I don't really dig into that.
Anyway, Facebook R E W T F of the week. Yeah, that's it. We've pushed this around a few times. It got a lot of push on it. A lot of comments. This is the second time I posted it, but just imagine staring at that wall stairs. Coming down at you and then trying to relax and you have people going up and down the stairs the whole time.
So yeah, there you go. REWTF of the week.
REO of the Week
So we have the REO of the week this guy right here. I wanted to look at it and this is in Los Gatos. It's really pretty. Area Los Gatos, if you don't know, this is just it was built and I think they ran out of money. It's completely unfinished. Look at that.
But that's a great view. There
you go. Its kitchens are already ready to go. It's basically a blank slate. They just, you're stuck with the walls and the rooms where they are. This could be a really nice-looking house. If somebody wants to buy it and it's all for sale right now for three and a half million dollars for a bedroom, four and a half baths, 4, 200 square feet on almost an acre or a third, two-thirds of an acre, four, three, five, six, Oh, four, three, five, six.
Oh, is an acre. So this is bank-owned. It's been on the market for six days. So if you're interested, let me know. Happy to take you to it. Not much you can do to get into it, but there you go. And then let's see, mountain view home of the week.
It's this guy right here. Now, for some reason, they started off with the
kitchen. Why would you start? You don't know what the house looks like. This is going for 2. 4, 3 bedroom, 2 bath, 1, 760 in Mountain View.
In Mountain View. It's been on the market for 35 days, but it's a really pretty house. It's a ranch. Standard ranch house for 2. 5 million, right? How did the prices get that high, Vito? I've been telling you this for the last Inventory is horribly low right now, horribly low. Our numbers are coming up as far as sales are concerned, but when it comes to supply and demand, the amount of demand far out measures the supply that's out there and people are being pickier because they're paying more for this house.
Now, look. That's all original.
They painted it. They updated it, but they didn't remodel it. You're basically getting a 1957 house that's been updated and they're asking a premium for it. So pricing matters guys. All right.
Market Snapshot: San Jose
Let's take a look and see what the 40 days on the market report or the market snapshot in San Jose are. We have 169 houses for sale right now.
On average last year, we had 255.
We're dreadfully low. And if you look at the number of active listings over history in Santa Clara County, at this time, we should be about, I don't know, about a thousand, maybe 800. We have 655 active homes for sale right now in Santa Clara. So we're dreadfully low, a lot less than last year, but that's because last year was just a wonky year.
We'll see these numbers pop up again, I believe, I hope, but I think what we're going to see is that these numbers will still stay low compared to the demand. We had 40 closes last year, averaging 35. Last year we averaged 60 closes a week. That, that's still really low for this market. But prices continue to go up.
If you look, they're continuing to wedge themselves up. Last year, the average sales price was about one five today. We're at one six, six, one right here. And even from last year, we're up a little bit. And then if I can make this bigger for you, there you go. Now you can actually see it last year. We had averaged 46 days on the market or 32 on average.
It actually came down, went down to 18, and now it's 19, right? Last year, this time was 32 days on the market average. Now it's 20 days on the market. So the demand is there. It's not firestorm demand, but we're still hearing that 300 people go through an open house. We still hear that houses get 25 offers and we do have houses that are selling for well over the list price.
Right as well as low, right? I think this is it right here. Yeah, this is this week's So you can just look at all these listings right here what they are listed for, and what they sold for 118 133 over the list price of 106. So we had 29 houses out of the 40 that sold over the list price. So there you go. That was quick and easy.
Down and dirty. Lawsuits, REWTF of the week, Mountain View House of the week, REO of the week, and San Jose snapshot. Hope these videos help. If you're thinking about buying or selling, let me know. I'm happy to talk to you about it. It's, the time to start talking about it is now if you're thinking about selling during the selling season, which is March, April, and May.
And I've been crazy busy with a lot of phone calls coming in, a lot of new
Conclusion and Contact Information
listings that I'm working on right now. And I'm super excited to share those with you when we come in and get them going. I'm Vito with Abitano. We'll see you out there.
Vito Scarnecchia
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Real Estate Giant Settles Class Action Lawsuit & Market Snapshot for San Jose
In this video, we dive into details regarding a recent $72 million class action lawsuit settlement by real estate giant Keller Williams for an antitrust violation. We also discuss the current market snapshot for San Jose, highlighting the low number of houses for sale compared to high demand, causing prices to surge. Features include a look at the REO of the week in Los Gatos, which offers a blank slate for building your dream home; the 'mountain view home of the week' for sale in Mountain View; and a candid discussion about the potential impact of class action lawsuits on the real estate industry. If you are interested in buying or selling properties in these areas, get in touch for more information.
0:00 🔴 real estate giant settles lawsuit | REO of the Week | Mountain View Home of the Week
00:01 Real Estate Lawsuit Overview
00:13 Introduction
00:48 Implications of the Lawsuit
03:26 Real Estate WTF of the Week
03:46 REO of the Week
04:38 Mountain View Home of the Week
05:34 Market Snapshot: San Jose
07:49 Conclusion and Contact Information
Title: Real Estate Giant Settles Lawsuit | REO of the Week | Mountain View Home of the Week
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The real estate industry has been rocked by recent news of a major settlement. In a class action lawsuit, one of the largest brokerages, Keller Williams, has agreed to settle for a staggering $72 million. This settlement is related to an ongoing controversy surrounding how commissions are handled in real estate transactions.
Traditionally, it has been common practice for buyers to have their agents' fees paid by the seller. However, some have argued that this arrangement is unfair. The lawsuits claim that buyers should be responsible for paying their own agent's commission. While this change has not been implemented yet, it could have significant implications for the industry.
One recent settlement in Missouri involved a whopping 26,000 plaintiffs and resulted in a staggering $1.8 billion payout. The exact amount the class action lawyer will receive from this settlement has not been disclosed, but it could range anywhere from $360,000 to a staggering $180 million. However, it's important to note that the individuals involved in the lawsuit are expected to receive a relatively small amount, around $6,000 each, after taxes.
It's undeniable that this settlement will have far-reaching effects on the industry. If buyers are required to pay their agent's commission, it could impact the accessibility of certain loan programs such as the VA or USDA loans. These programs prohibit the veteran or borrower from paying any additional fees. In such cases, the buyer's agent's commission would be considered an extraneous fee, potentially leaving the agent unpaid.
These legal battles and settlements highlight that real estate professionals face numerous expenses and risks. Brokers need to cover costs such as transaction management, marketing, professional courses, continuing education, and more. Despite the perception that real estate agents make significant profits, the reality is that their income is often whittled down to a modest amount after various expenses are accounted for. Additionally, with the potential for lawsuits looming over large brokerages, many agents are choosing to work with smaller, less litigious companies.
While the industry grapples with these changes and settlements, let's not forget the exciting properties available for purchase. This week, we have two noteworthy properties to showcase – the REO of the Week and the Mountain View Home of the Week.
The REO of the Week is a stunning property located in Los Gatos. It's a blank canvas waiting for someone to bring it to life. With breathtaking views and a versatile layout, this property has the potential to become a dream home. Currently listed at $3.5 million for four bedrooms and four and a half bathrooms spanning 4,200 square feet on almost an acre of land, it presents an incredible opportunity for those looking to create their own oasis.
On the other hand, the Mountain View Home of the Week offers a different kind of charm. This ranch-style home boasts three bedrooms, two bathrooms, and 1,760 square feet of living space. Its location in Mountain View adds to its appeal, making it an attractive option for those looking to enjoy the Silicon Valley lifestyle. With a listing price of $2.4 million, this property showcases the rising prices in the area as demand consistently outweighs supply.
Speaking of supply and demand, the San Jose market snapshot reveals an interesting trend. There are only 169 houses for sale, compared to an average of 255 last year. This significant drop in inventory, combined with strong demand, has led to increased prices. The average sales price has risen to $1.661 million, up from $1.5 million last year. Additionally, in recent weeks, houses have been selling quickly, with an average of just 19 days on the market.
The real estate landscape is ever-evolving, with new challenges and opportunities arising. It's crucial to stay informed and understand the changes taking place. Whether you're a potential buyer or seller, now is the time to start considering your options and speaking with a knowledgeable agent.
At Abitano, we're committed to helping you navigate the complex world of real estate. If you have any questions or are looking to buy or sell a property, don't hesitate to reach out to us. We're here to guide you every step of the way. Together, we can make informed decisions and ensure a successful outcome in this dynamic market.
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Note: This blog post has been drafted based on the provided script. Some minor edits and additions may be required for a polished final version.
Sure! I can help you come up with some options for text posts that you can use to promote your real estate content on social media. Here are a few ideas:
1. Post 1: "🔴 Exciting News! A real estate giant just settled a $72 million class-action lawsuit. Find out what it means for the industry and how it could impact buyers and sellers. Plus, check out the stunning Mountain View Home of the Week! #realestatenews #mountainviewhome"
2. Post 2: "🏢 Keller Williams, one of the largest brokerages, recently settled a 70-million-dollar lawsuit. Learn about the antitrust settlement and the potential changes it may bring to the real estate market. Don't miss the chance to see the REO of the Week and get a market snapshot of San Jose! #brokeragesettlement #REO #SanJose"
3. Post 3: "💰 Massive class-action lawsuits, buyer-seller commissions, and more! Get the inside scoop on the recent legal battles shaking up the real estate industry. Plus, explore a stunning Los Gatos property and get a sneak peek at the Mountain View Home of the Week. Don't miss out! #realestateindustry #lawsuit #propertyshowcase"
Feel free to customize these posts to fit your branding and social media platforms. Let me know if you need any further assistance!
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