Opinion: It’s time for real estate to do the right thing
Doing the right thing is simple in theory, but often most difficult in practice. Our family founded Baird & Warner more than a century ago with the mission to serve buyers and sellers with transparency and integrity, and we have weathered many changes in our industry during this time. Sometimes our choices weren’t the most popular, but it’s always in our DNA to do what’s right. My father, who in the 1960s took a stand against the then-common practice of redlining, which ultimately influenced the creation of the federal Fair Housing Act, is just one example.
I have always believed that buyers’ and sellers’ broker commissions should be paid by their respective clients, either directly or through the transaction, providing full transparency for all parties. After decades of opacity and several class action lawsuits, the updated Multiple Listing Service (MLS) policy went into effect on August 17 to comply with the required practice changes of the National Association of Realtors (NAR) settlement. Of the most consequential, the first requires that MLS participants working with a buyer enter into a written agreement before viewing a property, and the second requires the elimination of the buyer agent compensation field in the MLS.
The second requirement is a crucial one, as the lawsuit against NAR was based on the principles of antitrust and direction. We must follow not only the letter but also the spirit of the regulation and also listen to the tone of the warnings from the Ministry of Justice. It is clear to me that any broker or real estate company that seeks solutions, including posting compensation on their website or in other advertising, will only continue the same practices that got us where we are today and risk setting off a cycle of lawsuits to put.
Today’s consumers have access to more information than ever before, and our job is to be their trusted advisor, not a gatekeeper of listings based solely on the compensation we receive. As high-integrity, well-trained professional real estate agents, we earn the trust and reward of our clients by demonstrating our expertise, negotiating skills and fiduciary responsibility.
After participating in some of the dozens of meetings and trainings our brokerage has held since last year on these changes, I am more steadfast than ever in continuing our company’s tradition and asking all brokers and brokers to do what is right for our customers and our the future of the industry.
Steve Baird is the president and CEO of Baird & Warner Real Estate.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.
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