California
Realtors settlement brings confusion, relief to Southern California’s real estate industry
One thing is known for sure about a proposed settlement of a massive antitrust case against Realtors: the home selling process is about to change, and with it, how buyers and sellers compensate their agents.
Otherwise, say members of Southern California’s real estate industry, it’s too soon to decipher the impact of the $418 million deal unveiled on Friday, March 15.
Also see: Brokerage stocks tumble after Realtors agree to commission-cutting deal
Will buyers now start paying their agents directly?
Will buyers now have to sign a contract before their agent will show them any homes?
Will lenders allow buyers to roll the cost of paying agent commissions into a slightly larger mortgage?
And ultimately, will the settlement lead to to smaller commissions and lower home prices?
Also see: Homebuying’s 6% commission is gone after Realtors settle lawsuit
“There’s just a lot of moving pieces that have to be settled,” said Art Carter, chief executive of the Chino Hills-based California Regional Multiple Listing Service, which covers much of Southern California. “And I’m not going to say I have my arms around every one of those moving pieces.”
In a statement announcing the settlement, the National Association of Realtors said it agreed to a new rule banning sellers from offering compensation to buyers’ agents through a Realtor-affiliated MLS, or home-listing database.
But it was unclear if that will end the decades-old practice of requiring sellers to pay buyers’ agents.
While “offers of broker compensation could not be communicated via the MLS,” the NAR statement said, “they could continue to be an option,” so long as they’re communicated outside the MLS.
“The only certainty I can give you is the process will change,” Carter said.
The Realtor announcement followed an Oct. 31 jury verdict in Kansas City awarding nearly $1.8 billion to Missouri home sellers, finding the current agent compensation system perpetuates the 5-6% commission rate.
More than 20 similar lawsuits proliferated across the nation in the wake of the verdict, including at least three in California, naming more than 200 other industry groups in 11 states as defendants.
California Realtor groups hit with copycat commission rates lawsuit
Under the settlement announced Friday, NAR would pay $418 million over four years, instead of $1.8 billion. The settlement would cover more than a million NAR member agents, all state and local Realtor associations, Realtor-owned multiple listing services and NAR-affiliated brokerages generating less than $2 billion in sales. But large national real estate chains that were NAR’s co-defendants won’t be covered.
A law firm that took part in the settlement hailed the agreement as “groundbreaking,” saying it could save consumers billions of dollars in broker fees.
“This settlement changes (NAR) rules so that competition will occur at the commission level,” Steve Berman, a lead attorney in the case, said in a statement.
In Southern California, the announcement led to a combination of confusion, anxiety and relief.
Carter, the regional MLS CEO, tried to explain the settlement Friday to a meeting of brokers in Arcadia.
“I think there’s just a lot of confusion,” he said of the brokers’ reaction to the news. “They’re just curious to see what the new normal is going to look like.”
There was an element of relief at the Glendale Association of Realtors, one of 19 local Realtor associations named in a class-action lawsuit filed in January.
The settlement appears to be “a good start, a step in the right direction,” said David Kissinger, Glendale Realtors association chief executive.
“We are in defendant in one of the cases,” Kissinger said. “And as a defendant in a case, … that’s concerning. There is substantial risk to us. We were certain in the belief that the case did not have merit. But, you know, the court and the jury are going to do what they’re going to do.”
Carter echoed that sentiment.
“We support NAR for taking the steps” toward settling the cases. “If it would have been litigated further, it could have been quite detrimental to the the industry.”
The proposed effective date will be July 1 if the settlement gets court approval, although that — like everything else — is subject to change, Carter said.
If approved, the settlement could lead to the widespread use of buyer-broker agreements, he said. Currently only about a fifth of buyers sign representation agreements with their agents.
It’s possible sellers could list an amount for concessions in their MLS listings, instead of compensation offers, and buyers could use those concessions as they choose — perhaps paying for repairs, for closing costs or to compensate their agents, Carter said.
“The (agent’s) job is going to change significantly,” said Newport Beach broker Bill Cote, owner of Cote Realty Group. “I think you’re going to see a whole element of people come out and say that they are buyers brokers, and they’re only representing buyers. But the difficulty with that is getting the buyers to step to the plate to say that they’re going to pay the compensation to the buyer’s broker.”
Cote noted that in high-priced communities, from Newport and Laguna Beach to Silicon Valley, the buyer’s share of commissions “has always been very large.”
Ed Coulson, director of the Center for Real Estate at UC Irvine, predicted the settlement could have a major impact on agent earnings and commission rates.
People accepted 5-6% commission rates as if it were a rule, which it’s not, he said.
“One of the things that’s going to happen is people will recognize it’s not a rule, and that’s going to bring commission rates down,” he said. “I think the thing that is most important is we don’t know the impact on prices. There’s been a lot of speculation it would lower house prices, but that depends on the seller folding the commission into the house price. And I’m very uncertain that we know the extent to which that happens.”
The week between Christmas and New Year’s Day is always revealing for the best boys basketball teams in California and final days of the 2024 calendar year should be no different.
The Damien Classic and Torrey Pines Holiday Classic always present a window of what is in store for the rest of the season and separates the contenders and pretenders. Next weekend at the HoopHall Classic West in Gilbert (Ariz.), Jan. 2-4, will also give the elite teams time to strut their stuff.
There are nine teams among California’s Top 25 still unbeaten at Christmas, a pretty high number, including top-ranked St. John Bosco, No. 6 Riordan and No. 8 De La Salle and No. 9 Montgomery.
Note: Only teams that play for a CIF State California title were considered for this rankings, thus eliminating Prolific Prep of Napa Christian, which can and will play for a mythical national title. Notes and rankings below from Southern Section teams supplied by SBLive’s Tarek Fattal.
The Braves win their Trinity League opener over Orange Lutheran without Brandon McCoy and Elzie Harrington. Christian Collins and Max Ellis led the way. Next up: Platinum Division in Classic at Damien.
Roosevelt wins the Tarkanian Classic in Las Vegas, beating Notre Dame/Sherman Oaks in the final. Brayden Burries scored 26 points and Issac Williamson had 19.
Nik Khamenia notches 26 points, 10 rebounds and eight assists in a convincing win over JSerra, a team expected to earn an Open Division berth.
Notre Dame suffers its first loss in the Tarkanian Classic final to Roosevelt despite Tyran Stokes scoring 20 points. Lino Mark played just four minutes in an attempt to play while injured. (TYRAN STOKES DEBUT)
Four more wins started with 90-65 blowout of defending state D2 champion Oakland Tech behind 33 points and 10 points from Tounde Yessoufou, and a combined 45 from Julius and Malcolm Price along with Gunner Morinini. Yessoufou is averaging 29.8 points and 7.7 rebounds per game.
Won the Gridley Classic with wins over Branson (68-27), Clovis North (54-52) and previous No. 6 Salesian (52-51) thanks in part to tournament MVP Andrew Hilman (19 points). Texas Tech-bound Jasir Rencher and Irvine signee Nex Emeneke was also All-Tourney.
Pride lost their first regular-season game since 2022, 52-51 to Riordan, in finals of the Gridley Classic. Salesian missed two free throws with 1.2 seconds to play.
Win over Santa Margarita (61-57) to win the Vountour Classic was team’s most impressive. David Balogun, a rapidly improving 6-6 post, scored 29 to lead the way. Since then breathers over Mountain House (67-35), La Salle (76-26) and Sacred Heart Cathedral (79-39).
The Aztecs from San Diego won five games last week, including four at the Tarkanian Classic to take the Nike Division championship behind division’s Most Outstanding Player J.J. Sanchez, who had 22 points in the finals.
Eagles’ only loss comes this week to unbeaten NorCal power De La Salle, but bounces back with a win over Murrieta Valley.
Trailblazers beat Millikan 87-33 this past week.
The Lions get a taste of Open Division-level hoops in a 65-50 loss to Harvard-Westlake.
Redondo Union is picking up Open Division playoff buzz.
La Mirada has been idle since Dec. 14.
Coach Paul Tait is enthused by the play of sophomore point guard Dominic Loehle.
After lopsided win over St. Augustine (77-54), recorded tough wins over Sage Creek (75-66), Mission Hills (67-59) and La Jolla Country Day (80-68).
Monarchs have won five of their last six.
Pius went 2-2 at the Tarkanian Classic.
Jasone Crowe Jr. is averaging 37 points per game.
Had won four straight before losing 63-54 to Brophy College Prep of Phoenix Ariz. (63-54).
Quality win over Pacifica Christian of Orange County without Jeremiah Hampton was impressive. JJ Harris and Louis Bond impressed.
Canyon has won five straight. Brandon Benjamin averaging 30+ points a game.
Damien without big man Nate Garcia (injured).
Twelve straight wins isn’t a bad way to start the season. Defense a big key, holding opponents under 50 seven times, including three straight games limiting opponents to 49 in wins over Riverside poly (61-49), Salesian Los Angeles (93-49) and Wiseburn-Da Vinci (61-49).
Cougars last win came against Long Beach Poly on Dec. 14.
No. 1 San Francisco costs 18.2% more than typical US metro. No. 2 LA-OC is 15.5% more expensive.
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Originally Published:
Ever since Caitlin Clark left the NCAA to set records in the WNBA, the hunt for the next generational basketball talent has intensified. Among the emerging stars, JuJu Watkins stands out with her electrifying performances for USC and record-breaking milestones. But while her game dazzles on the court, her California roots and unique circumstances create hurdles that may hinder her quest to rival Clark’s legendary NCAA career.
On the latest episode of Fearless with Jason Whitlock, Whitlock tackled the issue, highlighting the contrasting environments between Clark’s Iowa and Watkins’ Los Angeles.
“Well, Caitlin Clark was in Iowa in the middle of nowhere. She wasn’t in the entertainment capital of the world. She wasn’t in a city that had 75-degree weather year-round and open beaches. She went off or she grew up in and continued to play in a little isolated area of the country where people are starved for entertainment. And so she built a huge following right there in the state of Iowa, her home state,” he said.
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The deeper issue, according to Whitlock, is the cultural and entertainment saturation of Los Angeles, where sports often compete with numerous distractions for attention. In contrast, Clark thrived in a basketball-centric environment, with little competition for local and statewide support. While Watkins’ environment may pose unique challenges, her talent remains undeniable.
She recently made history as the fastest Power Five player in women’s college basketball to reach 1,000 career points, accomplishing the feat in just 38 games—two fewer than Clark’s record. With season averages of 24.8 points, 5.8 rebounds, and 3.8 assists on 46.2% shooting, Watkins is unquestionably a dominant force. Yet, as Jason Whitlock put it, the question persists: Can she cultivate the same level of national adoration that Clark commanded?
Balancing brilliance: Can JuJu Watkins thrive amid criticism and California’s spotlight?
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Adding to the debate, Rachel DeMita voiced concerns over how USC is managing Watkins’ playing time on her own podcast. “I don’t think that’s what JuJu needs for the development of her game,” DeMita said, suggesting that keeping Watkins on the court for extended minutes might be more about stat-padding than fostering her growth as a player.
via Imago
Dec 21, 2024; Hartford, Connecticut, USA; USC Trojans guard JuJu Watkins (12) drives the ball agains UConn Huskies guard Paige Bueckers (5) and guard Kaitlyn Chen (20) in the second half at XL Center. Mandatory Credit: David Butler II-Imagn Images
Such a strategy could also increase her risk of injury, a significant concern given Watkins’ pivotal role for USC.
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Despite these challenges, Watkins has demonstrated resilience and poise. Her performance this season reflects her ability to adapt and excel under pressure. However, her journey to rival Caitlin Clark’s legacy will require more than individual brilliance. Watkins must navigate the complexities of playing in a city where attention is fragmented, balancing her development with the need to draw a larger following.
Whether she can carve out her own path and emerge as a player of Clark’s stature remains uncertain. For now, her record-breaking performances and undeniable talent keep her firmly in the conversation, as the basketball world watches to see if she can overcome the challenges of her California roots and fulfill her potential as the next NCAA superstar.
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