A Journey through the Evolving Landscape of Real Estate Transactions

One attorney sets out to take $50B a year out of REALTORS Pockets.

Ah, the land of the brave, home to the bustling free market and the cradle of capitalism. This is America, where real estate embodies the entrepreneurial zeal that fuels our nation. Yet, like a river carving through a canyon, the landscape of real estate transactions has morphed over time.

Once upon a time, pocket listings were the name of the game. You’d walk over to that one broker in town who knew everyone and their grandmother. For a neat 6% cut, they’d throw open the doors to a pool of buyers, making the process as breezy as a Sunday morning stroll.

But as more brokerages popped up like daisies, the game shifted. Brokers had to play nice, splitting the listing fee to keep the ball rolling. But oh, the plot thickened with the grand entrance of Zillow. This digital juggernaut swooped in, snagged the listings, and peddled ad space to “buyer agents,” who now have to cough up a whopping 40% referral fee from the fee they got from the listing agent, all paid for by the seller. And just like that, what used to be a simple handshake deal turned into a circus.

I’ll tell it straight — it’s a total shit show.

Now, I’m all for keeping things simple and square. Everyone should carry their own weight. Buyers definitely need exclusive buyer agents, but hey, they should foot the bill. It’s like being in court. If I get sued, I don’t cozy up to the plaintiff’s attorney. I hire my own. We each take care of our own tabs.

Here’s where things get murky. When a buyer heads straight to the listing agent, there’s a conflict of interest brewing. The listing agent’s got a pact with the seller. But if the buyer is cool with that, and everything’s laid out on the table, it’s all crystal clear.

Peering into my crystal ball, here’s what I see: listings will be snagged at a 3% fee to listing agent brokerages, and buyers will happily (or miserably) shell out 1–3% for buyer agent representation, right out of their own pockets. There is also a possibility of the real estate agent also becoming a licensed mortgage loan originator so they can “Waive” the buyer agent/representation fee, and make the money on the mortgage loan if and when it closes. Every state has different requirements and rules, also known as red tape, but people need to survive so someone will craft up the next big sexy opportunity.

In this digital day and age, anyone can “find a property” with a few clicks. But stumbling upon a trusted advisor or a bona fide expert? That’s a different ball game. From the hand-holding to the decades of hard-earned wisdom, buyers should be ready to pay for that goldmine of knowledge and service. When the going gets tough, you’ll want a seasoned pro in your corner to steer you clear of icebergs. Or else, you might just find yourself reenacting the Titanic.

So here’s the bottom line: The real estate field is ever-evolving, and to keep up, we’ve got to trim the fat, lay it all out on the table, and ensure everyone pays their fair share. This way, we stay true to the capitalist spirit that makes this nation great, and navigate through the choppy waters of real estate with clear skies ahead.

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