No Longer Business as Usual

 “Toto, I’ve a feeling we’re not in Kansas anymore.”

A big storm is coming that may be an extinction event for the residential real estate industry as we have known it for the last 100 years.

The current “System” is collapsing, it is not a random event and may be orchestrated.  Who is behind an expensive five-year local to national class action civil litigation that has resulted in a judgement that may cost the industry $5B or more, with many more cases in the queue?

Department of Justice
Federal Trade Commission
Federal Reserve
Civil Actions with successful outcomes for plaintiffs
Consumer Federation of America (CFA)

The demise of the current system that delivers essential services to home buyers and sellers has the full backing of the U.S. Government.  Who benefits, Google, Amazon, or others?  Denial is not a strategy.

The evidence of collapse grows every week:
·        The Federal Reserve is promoting a model that would reduce commissions by $30B
·        Major Brokerages are bleeding cash and continue to operate at a loss
·        Public companies are in the greatest jeopardy and may withdraw from the current system of “organized” real estate and pursue independent settlements and systems
·        Short Sellers see the direction and further degrade the value of brokerages
·        NAR can’t finance what has already been awarded to plaintiffs and their insurance resources are reported to be exhausted
·        An ever-growing set of copycat lawsuits adds to the future liability of the “system”
·        Brokers, teams, agents, MLS, associations and homeowners are in the dark

Will NAR be able to form or communicate a holistic go-forward legal and business strategy to conclude a settlement that is financeable, containable and enforceable, or will it risk the results of appeal?

This battle has been raging for over 40 years, and it looks like “the lion has come over the hill.”

“… as these lawsuits continue, experts say it’s only a matter of time before more and more midsize brokers and high-profile agent teams across the country see themselves hit with similar lawsuits — and have to decide whether to settle or risk a trial.”

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