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A Federal jury found the National Association of Realtors liable of conspiring to fix prices. Looks like high real estate commissions have over-stayed their welcome.
Be interesting to see how this shakes out because it’s a price fixing verdict. Will lawyers be next? Tipping?
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Not behind a paywall
https://www.axios.com/2023/10/31/nar-lawsuit-brokers-fees-verdict-sitzer-burnett
Interesting twist. Didn’t know that sellers will often get stock paying buyers reality fee. Looks like double dipping too me. -
A Federal jury found the National Association of Realtors liable of conspiring to fix prices. Looks like high real estate commissions have over-stayed their welcome. Be interesting to see how this shakes out because it’s a price fixing verdict. Will lawyers be next? Tipping?
I suspect you said that semi-in jest, but it’s closer to the truth than you might think. I’ve spent 18 years selling traditional law firm services. They have one and only one goal, and that is not to convince a buyer that they’re the best option, but that they’re the only option. But in most aspects, traditional law firms move in lockstep with each other, and their marketing and business development programs have the effect of dramatically limiting competition. Saw an interesting stat the other day…82% of all new client numbers are issued without benefit of a competitive RFP.
AYFKM? More than four out of five don’t even get a competing proposal? And I’m not talking about new matters, I’m talking about new clients.
Everything about that business moves in lockstep. Rate raises, associate pay bumps…the firms are paranoid about communicating with each other. It isn’t really a trust, but it may as well be.
I always said that if I ever needed to find a job quickly, I would become a legal procurement consultant. I have friends who parachute into a company, blindly promise that they’ll cut legal fees by at least 25%…and they do so. Easily. Because most firms will overbill like crazy if they think they can get away with it.
Audaces fortuna iuvat
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What’s the minimum size of the law firms and of the companies? And average per hour fee?
12 years ago I had an ERISA problem with a pension. I found an error in the calc for expected payout vrs lump sum and I could not get the administrator to acknowledge the error. I decided to find a labor lawyer at a big firm in Boston. You probably would know the firm. When I met with her I just wanted a quick review of the calculation and a letter to be sent verifying the error. When we talked about the fee, she cooly said $700/hr. I’m thinking if I can do this it cannot take but an hour – 2 tops for someone who does this all the time. Easy peasy.
I got the result I wanted. And she handed me a bill for $7000. I figure at worst she made $3500/hour.
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