October 2022

Bras For a Cause

Commission Transparency Should Be the Rule, Not the Exception

You may recall back in 2019 a slew of headlines frantically fear-mongering the potential end of the residential real estate industry as we know it. Obviously, the industry has not only survived its possible downfall, but it contin ued on a trajectory of explosive sales and inflated prices that coincided with exceptionally low inventory.

Here’s what happened: A homebuyer in California filed a class action lawsuit against the National Association of Realtors (NAR) and a slew of some of the largest global real estate companies. The plaintiff alleged that NAR and its co-defendants violated the law and, essentially, conspired to gouge consumers by inflating commissions and hin dering — if not eliminating — competition. The suit stated that tions because they’re primarily responsible for paying the commission to the seller’s agent and the buyer’s agent. It goes on to say that the cost to sellers would be much lower if buyers paid a commission to their own buyer’s agents.

Over the course of the lawsuit, the Department of Justice (DOJ) on competition in the residential real estate industry by concealing commissions collected by buyers brokers, even going as far as declaring their services are free. While buyers may not pay a commission to the buyer’s broker outright, sellers typically calculate the commission into the cost of the property.

The DOJ also charged that the industry made it too easy to quash competition by filtering listings based on the amount of the commission and even limiting access to listings to certain brokers and agents. Essentially, the plaintiff’s charged that if NAR committed to full transparency, compensation for brokers and agents would go down and consumers would save a lot of money.

While this and additional similar lawsuits have seen their fair share of twists and turns, one big takeaway for professionals is that consumers were demanding more transparency.

When a buyer or seller feels like their broker is concealing the amount of their

Written by RIKI MARKOWITZ /

Auctioned Highly Decorated Bras Modeled by Male Models

Benefiting the Breast Cancer Resource Center

PRICE

QUICK CLOSE 1015 Vista View Dr 2302 1-B 1413 3 Bed / 2.5 Bath $411,900

QUICK CLOSE 1015 Vista View Dr 1201 1-A 1413 3 Bed / 2.5 Bath $399,900

QUICK CLOSE 1015 Vista View Dr 2201 2-A 1615 3 Bed / 2.5 Bath $429,900

QUICK CLOSE 1015 Vista View Dr 2202 2-A 1615 3 Bed / 2.5 Bath $429,900

November 2022 1015 Vista View Dr 1101 1-C 1413 3 Bed / 2.5 Bath $429,900

November 2022 1015 Vista View Dr 1102 1-C 1413 3 Bed / 2.5 Bath $411,900

December 2022 1015 Vista View Dr 1001 3-A 1616 3 Bed / 2.5 Bath $411,900

December 2022 1015 Vista View Dr 1002 3-A 1616 3 Bed / 2.5 Bath $429,900

November 2022 1015 Vista View Dr 1102 1-C 1413 3 Bed / 2.5 Bath $429,900

December 2022 1020 Vista View Dr 2401 2-A 1615 3 Bed / 2.5 Bath $429,900

December 2022 1020 Vista View Dr 2402 2-A 1615 3 Bed / 2.5 Bath $429,900

November 2022 1020 Vista View Dr 2501 2-C 1615 3 Bed / 2.5 Bath $429,900

November 2022 1020 Vista View Dr 2502 2-C 1615 3 Bed / 2.5 Bath $429,900

Late 2022 1020 Vista View Dr 2301 2-B 1615 3 Bed / 2.5 Bath $429,900

"FALL" In With The Austin Board of REALTORS

Fall is finally here in Central Texas, and the Austin Board of REALTORS® has everything you need to stay on top of the shifting housing market. Stay informed on Election Day. Also, win a dream vacation and more!

A REALTOR® Guide to the November Elections

Support The ABoR Foundation + Win a Dream Vacation

Did you know that ABoR has its foundation focused on housing, education, and disaster relief work to solve the most pressing issues in our Central Texas community? When disasters strike, the ABoR Foundation mobilizes support from membership to contribute hundreds of hands-on hours and tens of thousands of dollars to help those in need. Since 1978, the ABoR Foundation has invested in hundreds of initiatives that have paid dividends to the Central Texas area in the form of happier people, healthier communities, and new opportunities for our fellow Texans.

You can support the ABoR Foundation by purchasing a raffle ticket in our 2022 Vacation Raffle. A member favorite, the ABoR Foundation Raffle allows the winner to choose between one of four incredible vacation packages, including:

• Tuscany Culinary Escape

• Alaska Frontier Adventure

• Palm Springs Dream & Drive

• The Best of Food & Wine Healdsburg, Sonoma

CORD SHIFLET 2022 PRESIDENT

Elections are right around the corner. Our ABoR Advocacy Team has been hard at work developing resources to inform agents about candidates who plan to prioritize housing if elected. Members can find the 2022 REALTOR® Voter Guide with ABoR-endorsed can didates and information about local bond propositions on the Voter Hub webpage at ABoR.com/Vote.

A new ScratchThat Podcast with ABoR CEO & Host Emily Chenevert is BACK with Austin Mayoral candidate Kirk Watson! Hear about his stance on issues that affect the real estate industry and his plans to prioritize housing if he is elected Mayor of Austin once again in November.

Listen to the most recent ScratchThat Podcast with Kirk Watson on all major podcasting platforms at ScratchPodcast.com, or watch the video at YouTube.com/AustinBoardofRealtors

Buy one ticket for $50 or five for $200 (1 FREE ticket!) by November 1 for a chance to win one of the dream getaways!

Visit ABoR.com/Raffle for full details on vacation packages and how to buy your ticket.

Stay On Top of the Changing Housing Market

Members have been buzzing about last month’s Market Shift Conversations Part One and are gearing up for part two on November 3! If you missed our panel of experts from part one sharing their insight on pricing strategies, staying competitive, and building buyer confidence, you can still get the recording at ABoR.com/MarketShift!

During part two, we’ll have more experts on hand to discuss how to weather a market shift. They'll also discuss tactics for keeping the pipeline pumping and setting expectations for business plans in the year ahead. Save your spot now at ABoR.com/Events.

Austin

REALTOR Safety Day: Patricia Perez and Kacey Taylor of Choose Charlie Real Estate Team

AREAA Golf Tournament: Markus Overheu of Priority Title and Bill Brewer

Coming Soon

New homes are on the way.

KB Home is excited to announce that a new community is coming to Lockhart. Don’t miss this opportunity to be among the first to choose a homesite and floor plan, and lock in a great price for the home you’ve always wanted. It’s the first step in building a house that’s as unique as you are.

Centerpoint Meadows in Lockhart

From the low $300s

• 1,271–2,968 sq. ft.

• 3–6 bdrms., 2–4.5 baths

• Commuter friendly; easy access to Hwys. 130 and 183

• Minutes to shopping, dining and entertainment in downtown Lockhart

• Near sports and outdoor recreation at Maple Street Park, Lockhart Soccer Complex and Lockhart State Park

602 Indian Blanket St. Lockhart, TX 78644 737-477-3030

From Hwy. 130, exit Boggy Creek Rd. heading east. Turn left on City Line Rd. and right on Maple St. to community entrance on the right.

888-KB-HOMES | kbhome.com

New Year, New Opportunities To Join A Committee

We are officially into the holiday season! This is always such an exciting time of year. It includes celebrating with friends and family, enjoying numerous tradi tions and reflecting on the good that we have experienced over the past year. It is also a time when we start to envision what the new year will hold for us and our business.

In planning for next year, be sure to set aside some time to volunteer with your local association! Central to the operation of the Williamson County Association of REALTORS® is the desire to involve its members. We have a culture of service. We believe the industry is better when we serve together. As a member of WCREALTORS there are several opportunities to serve. The activities of our Association start at the committee or small group level. New Year, New Committees! Here at WCREALTORS we have so many amazing committees for you to serve on. From finance to events, and everything in between! Be sure to head over to www.wcrealtors. org/get-involved to further explore all of the volunteer opportunities that we have available.

MICHELE SHERWOOD 2022 PRESIDENT

Don’t let the word committee fool you. These are service-oriented groups that carry out spe cific functions. Most committees meet once a month for an hour in a hybrid setting.

Getting involved at the association level helps you to grow your network and gain more in sight into the industry from fellow professionals. Committee work helps grow strong bonds with REALTORS® and affiliates alike, while building valuable tools and lifelong friendships for your REALTOR® toolbox.

We are Williamson County. We Are Just North of Weird, and we’d love to see you around the Association in 2023!

WCREALTORS Annual Golf Tournament: Derrick Matthews, Brandon Barger, CJ Rogers and Anthony Collins, all of StarPointe Realty Management

AmeriFirst’s Intro to Divorce Real Estate Class: Presented by David McMillan of AmeriFirst

J I M M Y D , A G E N T

REALTOR Safety

advertising inquiries (512) 514-3141

submission guidelines

Submit photos, press releases and calendar items to tawanna@myrealtyline.com

All images must be 300 dpi and include a caption with first/last name and company affiliation. Press releases must be fewer than 300 words. Submission items will be included as space allows.

get in touch info@realtyline.us P. O. Box 81366 Austin, Texas 78708-1366

RealtyLine is published monthly by Caxton Publications, Inc.™ as a non-subscription publication for the more than 18k+ members of the Austin Board of REALTORS® (ABoR), the more than 1,800+ members of the Williamson County Association of REALTORS® (WCREALTORS) and the Home Builders Association (HBA) of Greater Austin.

RealtyLine is a proud member of ABoR, WCREALTORS, HBA and an honorary member of WCR Austin Chapter. We are equally proud to be a Major Investor in TREPAC (2019, 2020).

RealtyLine is not responsible for opinions or facts expressed by non-staff writers or for errors and any by-products in advertising or editorial copy. REALTOR® is a registered trademark. The word REALTOR® sometimes appears in this publication without the registered trademark symbol (®) to save space. Wherever the word REALTOR® appears in this publication, the registered trademark should be assumed.

LINDA

University Heights Grand Opening: Cathy Sanders of Scott Felder Homes, Kathrin Luetkhoff of JB Goodwin

and Erin Osborn of Scott Felder Homes

Global Congress Networking Happy Hour: Christine Wren of the Austin Board of REALTORS with Stacy Brunson Kuper Sotheby's International Realty

AREAA Golf Tournament: Michael Hough, Jason Weir, AREAA President Debbie Tran, JR Vasquez and Will Parnell

REALTOR Safety Day: Ian Grimes of Douglas Elliman Real Estate and Master Janell Smith, self defense instructor

Photo Credit: Austin Board of REALTORS

AMBA Monthly Meeting: Kim Westphal and Rob Macioce

Champions School

Carroll

Santa Rita Ranch Sneaker

Peek: Chris Dodd and Shane Wolf, both of Scott Felder Homes

commission, or even who’s responsible for paying commission, they then question what other information is being concealed.

Williamson County Association of REALTOR 2022 President Michele Sherwood of Keller Williams Realty, doesn’t necessarily disagree with consumers’ concerns. “The challenge I see is that if someone's interested in purchasing a home, sometimes an agent will race out and show a property without actually sitting down, having a conversation and explaining how they get compensated.”

Sherwood doesn’t suggest that real estate professionals intentionally mislead clients. It’s more complicated than that. “One of the big gest challenges is that a lot of clients don't understand the compensation piece,” she said. There is an easy solution, though. A significant amount of confusion can be eliminated if agents initiate the compensation conversation as early in the transaction process as possible. “Preferably,” Sherwood suggests, “before agents show a single home.”

Talking about compensation is crucial for any professional, but that doesn’t mean it’s easy. And for some agents, it never gets any easier. But real estate professionals don't necessarily have to learn the ropes on their own.

Lots of local and statewide residential real estate organizations publish blog posts and FAQs, produce videos and infographics, and even offer continuing education (CE) classes that help agents and brokers find their voice and talk to clients about compensation.

One article by REALTOR Magazine offers straightforward tips for establishing compensation expectations with clients. The first is to use a buyer rep agreement, which details how agents get paid, how much they get paid, and by whom.

REALTORS are also strongly encouraged to fully disclose all the “extras.” For example, compensation for the buyer’s agent might be higher than the amount stated in the buyer rep agreement. It’s not unusual for something like this to happen. If a seller offers to pay a bonus upon sale of their property, buyers should be aware of it.

Every penny of the compensation agreement must be disclosed to clients and Sherwood believes it’s a conversation that should occur in person. “I think it's imperative to be open and honest with the people that you're working with,” she says. “It prevents prob lems down the road.” These days, a lot of brokerages won’t pay agents without that agreement in place. “I think it’s the right thing to do,” says Sherwood.

While many residential real estate professionals denounced the arguments made by the plaintiffs in the ongoing real estate commis sion lawsuits, some good has come out of it for consumers. A year ago, in the spirit of transparency, NAR announced that the organization would adopt a few key institutional changes.

For one, brokerages could no longer say their services are free. It’s a reference to the way that sellers, rather than buyers, fork over commission to an agent after their home sale closes. Essentially, NAR admitted that it was a rhetorical flourish since sellers typically include that commission into the cost of the home. So the buyer does pay. The organization agreed to close this loophole.

The second pro-consumer change was ensuring to disclose how much compensation buyer agents would receive. So now, part of a REALTORS’ duties includes discussing what services they provide and how they’re compensated.

NAR also committed to ending a practice that permitted listings to be excluded from search results based on the amount of compen sation offered to buyer agents. In a press release, the organization said these changes were made “to ensure pro-consumer, pro-competi tive marketplaces for buyers and sellers, and brokers.”

Congress Networking Happy Hour: Ed Eakin of Eakin Group LLC, Gulay Bozdag of Keller Williams Realty, NAR's Global Ambassador Austria & Germany Pius Dawson,

Christine Wren

AMBA Monthly Meeting: Raquel Myers, Missy Driskell, Marie Cyr and Ryland Newman

Impact Leadership Group Legal 2 Class: Donnie Villasana of Austin Mojo Realty and Beth Rountree of eXp Realty

University Heights Grand Opening: John Alvaraz of Ascension Realty Group and Lindsey CzerlinskyEmmons of CzerlinskyEmmons Realty Group

Clearwater Ranch

Northgate Ranch

Santa Rita Ranch The Oaks at Highland Village | The Hollows on Lake Travis

WCREALTORS Annual Golf Tournament: The Classic Realty Team

Santa Rita Ranch Sneaker Peek: The Highland Homes Team

WCREALTORS

Tournament:

Late

Late

Late

Lane

Lane

Pinnacle Lane

Lane

Oak

Oak

PRICE

1524 3 Bed / 2.5 Bath $377,308

1524 3 Bed / 2.5 Bath $377,308

1524 3 Bed / 2.5 Bath $376,308

2 1524 3 Bed / 2.5 Bath $377,308

1594 3 Bed / 2.5 Bath $386,808

Lane Barton A 2 1594 3 Bed / 2.5 Bath $386,808

Lane

Lane

1524 3 Bed / 2.5 Bath $377,308

1524 3 Bed / 2.5 Bath $377,308

1524 3 Bed / 2.5 Bath $377,308

1524

1460

1460

Bed / 2.5 Bath $377,308

Bed

2.5 Bath

Bed / 2.5 Bath

$405,808

Santa Rita Ranch Sneaker Peek: Laura Watts, Luly Faltesek and Bobbi Hutchinson, all of Pacesetter Properties

DOMA Title’s Thrive for Five: Aaron Lee of Doma Title, and Brad and Laura Duggan of West Austin Properties

University Heights Grand Opening: Rashad Culver of eXp Realty, Danella Williams of Realty Texas, Dee Webb of Berkshire Hathaway Texas Realty and Mario Howell of Real Realty

AREAA Golf Tournament: Adam Walters of Spyglass Realty, Fletcher Edington Sam Robin and David Epsztein

SANDY

M A I L S A N D Y @ A M E R I F I R S T

U S

B E O N O U R N E X T E P I S O D E