Doing the right thing is easy in theory, but often the hardest in practice. Our family established Baird & Warner more than a century ago with a mission to serve buyers and sellers with transparency and integrity, and we’ve endured many changes in our industry during this time. Sometimes, our choices haven’t been the most popular, but it’s always been in our DNA to do what’s right. My father, who took a stand in the 1960s against the then-common practice of redlining, which eventually influenced the establishment of the federal Fair Housing Act, is just one example.
I have always believed that buyers’ and sellers’ broker commissions should be paid by their respective clients, either directly or through the transaction, providing complete transparency for all parties. After decades of opaqueness and several class-action lawsuits, on August 17, updated Multiple Listing Service (MLS) policies were enacted to comply with the National Association of Realtors (NAR) settlement’s required practice changes. Of the most consequential, the first requires that MLS participants working with a buyer enter into a written agreement before touring a property, and the second requires the elimination of the buyer broker compensation field in the MLS.
The second requirement is a critical pivot, considering the lawsuit against NAR was based on the principles of antitrust and steering. We must follow not only the letter but also the spirit of the settlement and also listen to the tone of the Department of Justice’s warnings. It is clear to me that any broker or real estate company pursuing workarounds, including posting compensation on their website or other advertising, will only perpetuate the same practices that got us where we are today and risk fueling a cycle of litigation.
Today’s consumers have access to more information than ever before, and it is our job to be their trusted advisor, not a gatekeeper of listings based solely on the compensation we receive. As high integrity, well trained professional brokers, we earn our clients’ trust and compensation by demonstrating our expertise, negotiation skills, and fiduciary responsibility.
After participating in several of the dozens of meetings and training sessions our brokerage has held on these changes since last year, I am more steadfast than ever in carrying on our company’s tradition and asking all brokerages and Realtor to do what’s right for our clients and our industry’s future.
Steve Baird is the President & CEO of Baird & Warner Real Estate.
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