The NAR settlement could change how consumers pay their agents, allowing them to pay separately instead of sellers paying a commission split between both sides.
The real estate industry is facing a significant change with the recent settlement between the National Association of Realtors (NAR) and home sellers.
The real estate industry is facing a significant change with the recent settlement between the National Association of Realtors (NAR) and home sellers. The seismic settlement has opened up new opportunities for technology to reshape the role of real estate agents, as people in other industries have already experienced. While sites like Redfin and Zillow provide a way for buyers and brokers to connect online, the process of buying a home has withstood many similar changes. The NAR settlement could change that by allowing consumers to pay their agents separately instead of sellers paying a commission split between both sides. This would give new technology an opportunity to reshape the role of real estate agents in closing purchases.
The process of buying a home has withstood many similar changes as technology has revolutionized how people book travel, buy groceries and manage their everyday finances.
Sites like Redfin and Zillow provide a way for buyers and brokers to connect online, but the role of real estate agents in closing purchases has persisted.
The seismic settlement between the National Association of Realtors (NAR) and home sellers could change that, as home buyers and sellers face the prospect of paying their agents separately instead of sellers paying a commission split between both sides.
Accuracy
Real estate agents are going extinct just like travel agents did
Commission rates can be particularly sour for buyers and sellers of expensive properties at standard 4% rate
Deception
(30%)
The article discusses the possibility of a change in the real estate industry where home buyers and sellers may face paying their agents separately instead of having them split commissions. This could lead to new technology reshaping the role of real estate agents as people from other industries have already experienced. The author also mentions that nearly half of home buyers began their search online, and many do research themselves, which raises questions about the need for a real estate agent in this process.
Nearly half of home buyers began their search online, according to a 2023 report by the NAR, and many do research themselves.
The article discusses the possibility of a change in the real estate industry where home buyers and sellers may face paying their agents separately instead of having them split commissions. This could lead to new technology reshaping the role of real estate agents as people from other industries have already experienced.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(85%)
The article discusses the potential for changes in the real estate industry due to a settlement between the National Association of Realtors and home sellers. The author mentions that technology has revolutionized many industries but not real estate, specifically citing sites like Redfin and Zillow as examples. However, they also mention that buyers' agents might see their work simplified through technology consumers can use themselves, similar to changes in money management. This suggests a potential bias towards the idea of using new technology to replace human professionals.
The author mentions that buyers' agents might see their work simplified through technology consumers can use themselves, similar to changes in money management.
Site
Conflicts
Of
Interest (50%)
John Towfighi has a conflict of interest on the topic of real estate industry as he is an owner and CEO of HomeBanc Bank which provides mortgage services to homebuyers. He also has a personal relationship with Danielle Hale who is the Chief Economist at Realtor.com, which could affect his objectivity in reporting.
John Towfighi mentions that he owns and operates HomeBanc Bank, which provides mortgage services to homebuyers.
Real estate agents are going extinct just like travel agents did.
The National Association of Realtors reached a groundbreaking $418 million settlement over an alleged conspiracy to inflate realtors' commissions.
Online homebuyers have access to nearly all the information they need to purchase a home through websites like Zillow and Realtor.com, plus photos of properties.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that real estate agents are going extinct just like travel agents did due to the internet. However, this statement is not supported by any evidence presented in the article and appears to be an exaggeration for attention-grabbing purposes.
The author's claim that real estate agents are going extinct is a deceptive statement as there is no evidence presented in the article to support it.
The author uses sensationalism by stating that real estate agents are going extinct just like travel agents did, which creates an exaggerated and misleading impression.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by citing the opinions of a professor without providing any evidence or reasoning for their claims. They also use inflammatory rhetoric when they describe real estate agents as being 'gatekeepers' and say that buyers are now more informed, which could be seen as exaggerating the impact of online resources on the industry.
The author uses an appeal to authority by citing the opinions of a professor without providing any evidence or reasoning for their claims. For example, they quote Andrew C. Spieler saying that real estate agents are like travel agents and that buyers don't need them anymore because of the internet.
The author also uses inflammatory rhetoric when they describe real estate agents as being 'gatekeepers' and say that buyers are now more informed. For example, they quote Spieler saying, 'You just don't need them,' in regard to both travel agents and real estate agents.
Bias
(85%)
The author demonstrates a bias against real estate agents by implying that they are no longer necessary due to the internet. This is evident in statements such as 'You just don't need them anymore because of the internet', and 'It's not rocket science, it's the internet.' The author also implies that real estate agents do not provide much value beyond completing transactions with minimal stress.
The National Association of Realtors (NAR) has had rules that controlled how much buyers and sellers pay to their agents and how you work with agents to get a home on the market.
Last week, for the first time in its history, NAR's control over this huge industry basically collapsed, and with it so did many of the costs it was imposing on consumers.
Nearly 9 out of 10 home sales are handled by real estate agents affiliated with NAR.
Accuracy
The National Association of Realtors (NAR) had rules that controlled how much buyers and sellers pay to their agents and how you work with agents to get a home on the market.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that there has been an invisible hand guiding and controlling the real estate industry for over 100 years without providing any evidence or context to support this claim. Secondly, they use sensational language such as 'crack in their armor' and 'nefarious-sounding group' to create a false sense of urgency and danger around the National Association of Realtors (NAR), which is not accurate. Thirdly, the author uses selective reporting by only mentioning that NAR has had rules controlling how much buyers and sellers pay to their agents without providing any information on other factors affecting the housing market.
The invisible hand guiding and controlling the real estate industry for over 100 years.
Fallacies
(80%)
The article contains an appeal to authority fallacy by stating that the National Association of Realtors (NAR) has had control over the real estate industry for over 100 years and is a powerful entity. The author also uses inflammatory rhetoric when describing NAR's rules as controlling how much buyers and sellers pay to their agents, which can be seen as an attack on consumer rights.
The group is the National Association of Realtors (NAR). Nearly 9 out of 10 home sales are handled by real estate agents affiliated with NAR.
Bias
(85%)
The author uses language that implies the National Association of Realtors (NAR) has been controlling and manipulating the real estate industry for over a century. The use of phrases such as 'an invisible hand' and 'untouchable' creates an extreme bias towards NAR being portrayed in a negative light.
The group is the National Association of Realtors (NAR). Nearly 9 out of 10 home sales are handled by real estate agents affiliated with NAR. And the crack in the armor is that they have had these rules that have controlled how much buyers and sellers pay to their agents and how you work with agents to get a home on the market.
The use of phrases such as 'an invisible hand' and 'untouchable' creates an extreme bias towards NAR being portrayed in a negative light.
