Lending Leaders
The Impact of the NAR Ruling

For this week’s episode of Lending Leaders, Jim chats with longtime LodeStar friend, Matt Einheber, Principal at TitleEQ and Creator of Title Box, about the impact of the NAR ruling and the future of real estate.

Weighing in on the NAR Decision

Nationwide, it’s pretty much convention that the seller pays 6%, which gets split between their realtor and the buyer’s. 3% each. Sometimes it can be lower, but, for the most part, that has remained unchanged. Or at least it was.

In Missouri, there was a recent decision that ruled against this convention. Instead, buyers ought to have the opportunity to set their own prices, instead of being locked into something that may not be beneficial to them.

Matt has been watching this case for a couple of years. He had this pegged as a game changer case a long time ago. But… amid a lot of fear-mongering about how this could negatively affect realtors, Matt believes there’s an opportunity here. Just because a law or precedent gives someone (in this case people buying and selling homes) the ability to act a certain way, doesn’t mean they will.

Free Markets

Already, in markets like Brooklyn, it’s already common for sellers to negotiate with the buyer’s realtor. Commissions hover around 1–3%. Now, in a town where a million dollars is a shoebox, that’s not a terrible commission. But the commission is still below the average, technically.

In a world where that kind of free market and negotiating power exists, realtors will have to work harder to earn their commission. This might be scary for some, but for those willing to compete and give it their all, the NAR ruling is hardly the end of the world.


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