THE WEEK IN REVIEW

Welcome to my weekly newsletter featuring a personal note on the ever-evolving world of real estate along with a few news-worthy updates. Enjoy!

REAL ESTATE AND COLLEGE SPORTS

COMPASS CEO Robert Reffkin published a powerful editorial this week. He details how Zillow, NAR, and regional MLSs are taking advantage of agents (and by extension their Seller clients) in the same way the NCAA exploited college athletes.

For decades, the NCAA made billions of dollars off the unpaid work of so-called “amateur” college athletes. Federal Courts eventually ruled that prohibiting athletes from being compensated for their name, image and likeness violated antitrust laws. And in 2021, Supreme Court Justice Brett Kavanaugh’s legal opinion stated the NCAA’s business model would be “flatly illegal in almost any other industry...”

When the individuals who produce the work that drives an industry’s profits are not fairly recognized, even the most influential and established organizations should be held accountable. As it stands today, organized real estate — namely, Zillow, NAR and the MLS — take, control and monetize listing content created by agents.

Agents can spend years building client relationships and earning listings. And we invest significant time and resources in professional photography, videos, floor plans and collating detailed listing information. The MLS requires that we provide those listings to them (enforced by $5000 fines for non-compliance).

The MLS then uses the content we have created, and sells it to third-party internet portals that hide the listing agent’s contact information. Those portals further monetize the listings by selling buyer leads to other agents.

Compass is taking a stand to change this system – to ensure every agent is fairly recognized for their work and has the freedom to decide with their client when, where, and how their listings are marketed.

Read the full article here.

real estate & the news

• In Australia, the success of compulsory retirement savings, is ironically compounding the problem of 'inheritance impatience' elder abuse.....often younger heirs seeking financial assistance to buy a home. Employers are required to set aside 12% of wages, swelling the retirement savings pool to $4.3 trillion, a sum that’s projected to become the world’s 2nd-largest by 2030. (Bloomberg)

• French leftwing lawmakers are pressing for people with fortunes of more than €100mn to pay a minimum of 2% tax annually on all their assets, including their companies, shares of companies and unrealized gains to pay down France's growing national debt....and would impact around 1,800 people. (FT)

• The Moehrl law firm is targeting Zillow in a new class-action lawsuit

  alleging the portal “tricks” buyers into using a Flex agent, which inflates commissions, and calls its private listing ban a “scheme to defraud buyers.”  The Sept. 19 complaint, filed in the U.S. District Court for the Western District of Washington, alleges Zillow is a "monopoly" in the U.S. market for residential real estate online search services, stating that it claims 66% of the U.S. real estate audience share. (REAL ESTATE NEWS)

around dc

MOUNT VERNON FALL WINE FESTIVAL AND SUNSET TOUR

OCTOBER 10-12

George Washington’s Mount Vernon is at its scenic best when fall rolls around, so it’s fitting that the historic estate hosts this special celebration of wine followed by a sunset tour of the property. Bring along a blanket, chill out on the east lawn, and sample Virginia wines with views of the Potomac River. Fruit and cheese boxes to accompany your wine are available for purchase in advance. For ticket information click here.

Lee Arrowood

Principal, Arrowood Advisory at Compass

M: 202.251.3175

O: 202.448.9002

lee.arrowood@compass.com

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