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California resident, Andrea Freedlund, has channelled her inner Erin Brockovich to harness some legal firepower. She’s taken it upon herself to sue on behalf of fellow homesellers who had to cough up dough for a buyer agent in a period spanning four years before real estate heavyweight, Redfin, decided to break up with NAR (National Association of Realtors).
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This juicy housing bombshell was unvirtuously unveiled in a suit filed in federal court. Talk about washing your dirty laundry in public!
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The drama kicks off with Freedlund nailing her colours to the mast, stating that the NAR’s buyer broker compensation rule enforced by MLSs equates to a totally not cool antitrust violation.
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Under the spotlight, the defendants are pondering their let’s-face-it-not-so-great options. Of course, in their corner, they have the shinier-than-a-polished-apple legal eagle, the DOJ, who recently dropped its own case against NAR.
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Contrary to popular belief, Freedlund isn’t just some disgruntled homeowner, but rather stacks up as a bonafide real estate professional, complete with her own eponymous brokerage.
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While the beef boils on the stove, Redfin and NAR play out their telenovela-esque parting of ways. Redfin’s choice to leave NAR officially marked the end of a longstanding yet rocky romance that spanned over a decade.
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In a twist befitting of a mediocre soap opera, Zillow, another digital real estate platform, is ruffling feathers with its change in business model from advertising houses for real estate agents to directly buying and selling homes oneself.
Hot Take
In the frenzied bonanza of the real estate world, everyone seems to be doing the Cha-Cha slide, two steps forward, two steps back. First, Redfin and NAR, the Jay-Z and Beyoncé of the real estate world, decide to call it quits. Cue the dramatic exit music and an overly emotional montage of their best moments.
And wait, what’s this? ‘Amazon-of-real-estate’ Zillow decides to change it up like an indecisive chameleon, metamorphosing from a cosy home advertiser to a staunch home reselling juggernaut. Wow, talk about a personality switch!
Meanwhile, the unsung hero of our story, Ms Fridlund, is busy going all legal eagle on NAR, accusing them of forcing homesellers to pay buyer agent compensation. Will our plucky protagonist prevail in court? Will Freedlund’s brokerage become a household name or just another one-hit wonder?
Finally, let’s not forget the DOJ, the ‘parent’ trying to maintain some semblance of order amidst the teenage angst. Have they truly abandoned NAR, or is this just a strategic retreat? More popcorn, anyone?
So, as the real estate world waltzes through this complex litigation ballet, grab your ringside seats, folks. The drama is only just beginning, and trust me, it’s better than Netflix.
Original article: https://www.inman.com/2024/02/27/redfin-in-crosshairs-as-new-lawsuit-targets-buyer-broker-commissions/
