In this episode of the Heartland Multifamily Show, Trot and I, explore a topic that’s not usually our focus but is crucial for understanding the current real estate landscape: real estate agents, brokers, and commissions. We start by discussing the evolving role of real estate agents and brokers in an age where technology and information are readily available to consumers. This shift, which I have predicted, is now becoming more evident as consumers can do much of the real estate heavy lifting themselves.

We then shift our focus to recent class action lawsuits against the National Association of Realtors and other real estate companies concerning the split of real estate commissions, especially when involving a multiple listing service. Trot explains the typical process: when a property is put on the market with a 6% commission, it’s often split between the selling agent and the buyer’s agent if they come from different companies. However, the issue arises when there are discrepancies in commission percentages between properties, leading to potential conflicts and legal challenges.

This episode is not just about the mechanics of real estate transactions but also about the larger implications of these changes and legal challenges in the industry. It’s a must-watch for anyone involved in real estate, whether directly in multifamily investments or broader property dealings. As we navigate these evolving dynamics, understanding the legal and technological shifts is crucial for staying ahead in the real estate market.