Doing the right thing is easy in theory, but often hardest in practice. Our family founded Baird & Warner over a century ago with a mission to provide buyers and sellers with transparency and integrity, and during that time, we have experienced many changes in the industry. Sometimes, our choices aren’t the most popular, but it’s always in our DNA to do the right thing. My father is just one example of a man who fought against the then-common practice of redlining in the 1960s, ultimately influencing the creation of the federal Fair Housing Act.
I have always believed that buyer’s and seller’s brokerage commissions should be paid by their respective clients either directly or through the transaction, providing full transparency to all parties. After decades of opacity and several class action lawsuits, updated Multiple Listing Service (MLS) policies were enacted on August 17 to comply with practice changes required by the National Association of Realtors (NAR) settlement agreement. The most significant of these are that the first requires MLS participants working with buyers to enter into a written agreement before touring a property, and the second requires the elimination of the buyer’s agent compensation field in the MLS.
Considering that the lawsuit against NAR is based on antitrust and guiding principles, the second requirement is a critical pivot. We must not only abide by the letter of the settlement, but also its spirit and heed the tone of the Department of Justice’s warning. It is clear to me that any broker or real estate company seeking solutions, including posting compensation or other advertising on their websites, will only perpetuate the same practices that led to where we are today and risk exacerbating the cycle of litigation.
Today’s consumers have access to more information than ever before, and it’s our job to be their trusted advisors, not list gatekeepers based solely on the compensation we receive. As high-integrity, highly trained professional brokers, we earn our clients’ trust and compensation by demonstrating our expertise, negotiation skills and fiduciary responsibilities.
Our brokerage has held dozens of meetings and training sessions since last year regarding these changes, and after attending several, I am more determined than ever to continue our firm’s legacy and require all brokerages and real estate Brokers do the right thing by our clients and our clients.
Steve Baird is President and CEO of Baird Warner Real Estate.
This column does not necessarily reflect the opinions of the HousingWire editorial staff and its owners.
To contact the editor responsible for this article: [email protected]
