CNN, Shed Light on Real Estate Commission Lawsuit

CNN, Shed Light on Real Estate Commission Lawsuit was recently featured in an in-depth CNN article about a lawsuit filed in March that alleges that collusion on the part of the National Association of Realtors and high-profile brokerage franchises resulted in high commissions in violation of federal antitrust laws.

In the article, Door, Inc. CEO Alex Doubet highlighted the fact that agents receive a salary because they are efficient and specialized:

"'We receive a bunch of pushback from traditional agents,' Doubet said. 'They badmouth us. The classic refrain is, 'you get what you pay for,'' Doubet said.

Despite Door's presence, Doubet said, about 86% of the listings on the North Texas MLS are offering at least 3% commissions to the buyer's agent. Door itself still requires sellers to offer other buyers' agents a 3% commission in order to attract bids.

Economic research backs this up:

A 2015 study found that homes offering a commission of less than 2.5% to the buyers' agents took 12% longer to sell and were 5% less likely to sell at all." Chief Marketing Officer Paul French also added his insight in the article:

"It's really hard to educate consumers that their broker is making 3%,' said Paul French, Door's chief marketing officer. 'Today there's an artificial barrier around the old way that's being defended to the death."

Read the full article here

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