Breaking News! Historical Verdict against Realtors + Zillow Acquires FUB
If you haven’t already heard, yesterday a federal jury in Kansas City, Missouri, ruled in favor of homseller plaintiffs in the closely watched Sitzer Burnett commission trial.
The jury’s verdict was that the defendants in the trial, including the National Association of Realtors, Keller Williams and HomeServices of America, conspired to artificially inflate real estate commissions. The damages are to be awarded to the 500,000 sellers who paid a listing broker who in turn paid a buyer broker. (One argument the plaintiffs made is that it is a conspiracy that a seller has to pay for a buyer to be represented.)
In addition, it was announced this morning that Zillow, who already owns ShowingTime, DotLoop and many more, purchased the popular CRM, Follow Up Boss for $500 million.
While neither of these events will yield immediate consequences, both are absolutely indicative of major shifts in the market:
Let’s be real - Zillow wants to replace us. The trial verdict makes it even easier. It’s the biggest real estate website in the world, why not become the biggest real estate marketplace in the world? Here’s why:
This won’t happen because buying and selling a home is a complex transaction, involving numerous moving pieces and many people. It requires a human being - not a website - to make it all come together.
Agents have to be better. This includes being able to better explain their value to buyers all while asking those buyers to possibly compensate them. Many agents will leave; the best agents will stay.
With change, comes opportunity. This is a constant, not just in the real estate industry but also in life. For those that handle themselves well, it will be an exciting time and a new era for the real estate professional.
