Chairman’s message: The value you provide clients – Texas REALTORS®-2021十大正规彩票app

By Marcus Phipps

December 01, 2023

Tell prospects and clients the many valuable services you provide to help them achieve their real estate goals and protect their best interests.

You’ve probably heard that Texas REALTORS® was recently named in a lawsuit along with several local associations and brokerage firms and real estate teams in Texas. After the verdict against NAR and other defendants in a suit regarding broker compensation, this comes as no surprise. This is one of many copycat lawsuits that have been filed across the country. The litigation alleges that MLS rules and brokerages’ corporate practices lead to set pricing and commissions that are too high.

Your Texas REALTORS® Leadership Team stands by the value of the professional expertise you provide your clients.

We firmly believe that cooperative compensation between brokers is transparent and efficient. Multiple listing services give you and your clients the most accurate, comprehensive, up-to-date property information available.

As you know, there is no set fee for brokers. Each brokerage independently sets its own fee structure. Each brokerage—in consultation with its clients—decides how much to offer in cooperating compensation to other brokers. And each brokerage negotiates its fees as it sees fit.

Consumers have many choices regarding real estate brokerages. They can hire a broker that offers an extensive list of services, one that provides only the minimum services required by Texas law, or something in between. They can pay a commission, a flat fee, or any other type of fee agreed-upon by the broker and client. They can sell their home outright to a brokerage. Buyers and sellers may even complete real estate transactions without hiring a broker at all.

As this lawsuit proceeds, Texas REALTORS® will share all information that we can with you. Please understand that there may be things we cannot say, and I ask for your patience in that regard.

Within hours of learning of this lawsuit, we sent an email to all members with initial details and a link to a video, background information, and FAQs. We will continue to provide updated information at hwanfei.com/lawsuit. We have hired the law firm of Husch Blackwell to represent us in this matter. Texas REALTORS® leaders and association lawyers and staff are committed to working diligently for a positive resolution.

What can you do?

This lawsuit does not currently change how you do business. Listing brokers decide how much compensation to offer cooperating brokers to best serve their sellers. That can be $0, a penny, or any other amount. Neither NAR nor Texas REALTORS® nor any MLS specifies an amount. This is solely a matter negotiated between brokers and their clients.

Continue to tell clients, friends, and family that compensation arrangements are negotiable and are set between brokers and their clients. Continue using written listing and buyer representation agreements to clearly explain exactly what services you are providing and how much you charge. And continue to tell prospects and clients the many valuable services you provide to help them achieve their real estate goals and protect their best interests. Don’t assume that buyers and sellers know all the tasks you undertake and the details you manage from well before a signed contract until a transaction closes.

Looking toward the future with optimism

Before this lawsuit was filed, I intended to use my last column to talk about my optimism for the future of real estate in Texas. My positive attitude has not changed. While no one would choose to face a lawsuit—and no one can guarantee the outcome—here’s what I do know: REALTORS® care about our clients. We are passionate about helping people navigate one of the most important facets of their lives: the place they call home. We have a high standard of ethical behavior. In fact, our association was founded to deal with unscrupulous real estate operators.

I am optimistic because of our people. I am confident in the abilities and dedication of our 2024 Leadership Team of Chairman Jef Conn, Chairman-elect Christy Gessler, Secretary/Treasurer Jennifer Wauhob, and President/CEO Travis Kessler, as I take the role of Immediate Past Chair. I also base my confidence on the leaders who preceded me, including our 2022 Chairman Russell Berry. I thank you all for the honor and privilege of serving as your chairman this year, and I look forward to all that we will achieve in the future.

Marcus Phipps is 2023 chairman of Texas REALTORS®.

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