FOR IMMEDIATE RELEASENews ReleaseMarch 25, 2019
DOOR.COM BACKS CONSUMERS AND FIGHTS FOR TRANSPARENCY IN SUPPORT OF CLASS ACTION LAWSUIT AGAINST TRADITIONAL REAL ESTATE
Realtors Bracing for Potential Disruption in Industry
TEXAS – The modern, homegrown Texas real estate company, Door.com, is joining the fight for transparency on real estate commissions after home sellers filed a federal antitrust class action lawsuit on March 6, 2019. The lawsuit alleges the National Association of Realtors (NAR), Realogy Holdings Corp., HomeServices of America, RE/MAX Holdings, Inc., and Keller Williams Realty, Inc. violated the federal antitrust law by conspiring home sellers to pay an inflated amount to the broker representing the home buyer, according to Cohen Milstein, the law firm representing the home sellers.
The plaintiffs, consisting of home sellers whose homes were listed on one of 20 MLSs, claim in the lawsuit that NAR’s conspiracy began when the organization implemented the “Buyer Broker Commission Rule,” which requires all brokers to make a blanket, non-buyer broker compensation offer.
The lawsuit also alleges that the conspiracy has kept buyer broker commissions in the two and a half to three percent range despite the increasing buyer behavior of finding homes online and using a buyer broker only after finding the home they wish to purchase.
Door.com – a three-year-old startup company based in Dallas – has highlighted the ease and efficiency of the consumer buying and selling homes with significantly less commission. Its flat-fee model only charges $5,000 to list a home for sale – representing a significant savings to most sellers. It’s a proven model that supports the theory that most of the “homework” is done online by the consumer prior to any showings or transactions – making the traditional realtor’s job easier. Door.com’s full-service model represents the ideal alternative to disrupt the residential real estate market.
Door, Inc. Founder and CEO Alex Doubet has been a strong advocate for consumer protection and transparency throughout residential real estate transactions. The Harvard alumnus dives deeper into “Why is Disrupting Real Estate Brokerage So Hard?” shedding light on the outdated traditional real estate commission model and its hidden secrets: price anchoring, indirect payment, consumer behavior, among others.
“It is critical that our industry reacts positively to the changes in available service and technology to bring more transparency and value to consumers. Door.com encourages the NAR to take the lead to reduce the cost burden on both buyers and sellers, and to specifically remove all references to “buyer services being free” from their Code of Ethics & Standards of Practice,” said Doubet.
ABOUT DOOR.COMDoor.com is a next-generation real estate transaction platform designed to improve the client experience and reduce the costs associated with buying and selling a home. Door.com, Door.com Mortgage and Door.com Title deliver customized services with a team of full-time experts who use the best in technology to support the way you buy, sell and live with your home. Door.com operates throughout every major market in Texas, Georgia, Colorado and Florida. Door.com is Home Smarter. For more information visit Door.com.