Meow! The Copycats Are On The Prowl: The Download

The verdict is in — the old way of doing business is over. Join us at Inman Connect New York Jan. 23-25, when together we’ll conquer today’s market challenges and prepare for tomorrow’s opportunities. Defy the market and bet big on your future.

Each week on The Download, Inman’s Christy Murdock takes a deeper look at the top-read stories of the week to give you what you’ll need to meet Monday head-on. This week: Lawsuit after lawsuit dropped this week, with no end in sight. How will it affect your future?

On the day the jury returned a $5 billion-plus in the Sitzer | Burnett trial, plaintiffs’ attorney Michael Ketchmark filed what would become the first of the follow-up lawsuits. Since then, it seems that every week has seen new suits filed, and this week saw a bumper crop.

EXTRA: Commission lawsuits are piling up. Keep track of them all right here

The brand-newest (at the time of this writing) is a California lawsuit called Latham, brought by a company that’s owned by a Sacramento law firm. It takes aim at a few specific MetroList rules that force sellers to pay buyer broker commissions and prevent buyers from reducing their brokers’ commissions.

In light of so much litigation, the question becomes: What are new plaintiffs hoping to gain at this point? Is the goal to drive NAR out of existence, or will we see a new super-suit that combines some of these copycats?

On Monday, Jan. 15, Las Vegas resident Nathaniel Whaley filed a complaint seeking class-action status on behalf of anyone who, from Jan. 15, 2018 through the present, paid a broker commission in connection with the sale of residential real estate listed on the Northern Nevada Regional MLS; Elko County MLS; Incline Village MLS; and Mesquite MREA MLS.

According to his complaint, Whaley sold a home in the Las Vegas metro area in April 2022 for $805,000, paying a total broker commission of 5 percent or $40,250. Three percent went to the buyer broker.

The psychological and emotional weight of this seemingly never-ending onslaught of lawsuits, coupled with a weak 2023 market hampered by high interest rates and low inventory, is taking its toll on real estate professionals, with the result that many are leaving the industry — or at least weighing their options.

For those who are determined to hang in there, it’s a time to reevaluate business as usual and learn how to implement best practices. Clients (and potential clients) have questions. You have to stay informed. You have to know how to answer their questions with clarity while also communicating your own value.

Fortunately, Inman Contributors Carl Medford and Darryl Davis have created some must-read guides to help you avoid the agent exodus and get back down to business while avoiding the distractions caused by copycat lawsuit after copycat lawsuit.

10 things to do right now, so you’re not in the next wave of agent exits

Team leader Carl Medford and his regional mastermind developed these 10 strategies to help you return to the fundamentals and take on the challenges and opportunities 2024 has in store.

EXTRA: California commission lawsuit filed against NAR and 35 other entities

Get your mind(set) right to avoid the fate of 49% of real estate pros

Nearly half of real estate agents sold next-to-nothing last year, writes mega-team leader Carl Medford. He shares strategies to help you turn disappointment into success in 2024.

EXTRA: Court says $200B commission suit against NAR must go forward

9 must-do moves to dodge the agent exodus

If you want to be a top-performing agent in 2024 — one who stays for the long haul — prioritize skill development to best adapt to the changing market, coach Darryl Davis writes.

EXTRA: Illinois’ 3rd commission suit names @properties, champions buyers

7 perks of seller-paid commission to share with homeowners

Transparency and communication are more important than ever before. Darryl Davis offers essential talking points for your next commission conversation with sellers.

EXTRA: Latest homeseller suits in Arizona, New York target commission rules