Anthony Speaks on Boston25 News about Proposed NAR Settlement Misconceptions

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Anthony Lamacchia biopic

Anthony Lamacchia is the Founder and CEO of Lamacchia Realty, a multi-state real estate company.

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Summary of 'Anthony Speaks on Boston25 News about Proposed NAR Settlement Misconceptions'

featured on Boston 25 news LIVE with Gene Lavanchy, Anthony Lamacchia addresses widespread misunderstandings surrounding the proposed National Association of Realtors (NAR) Settlement. Here’s a summary of the key points discussed:

  • Misconceptions about Realtor Charges: Anthony emphasizes that the biggest misconception is the belief that the settlement will dictate what realtors charge for their services. He clarifies that fees have always been negotiable and that the settlement does not make non-negotiable fees disappear. Anthony argues that the settlement, in fact, might make things more challenging for first-time buyers rather than easier.
  • Impact on Home Prices: Contrary to some reports, Anthony suggests that the settlement is unlikely to lower home prices. He points out that the real estate commission structure is what might change, not the fees themselves. The settlement is seen as an attempt by plaintiffs and their attorneys to disrupt the real estate business, not necessarily to benefit consumers.
  • Advice for Sellers: Despite the changes, Anthony advises sellers to consider offering compensation to buyers’ agents. This strategy is not about adhering to old practices but about attracting a wider pool of potential buyers and facilitating the sale process within the new limitations imposed by the settlement.
  • NAR’s Role: He clarifies that the National Association of Realtors (NAR) does not dictate or have any influence over what realtors charge, countering another common misconception.

Anthony Lamacchia criticizes the settlement for complicating the market for buyers, especially impacting first-time buyers negatively. He reassures that realtors are prepared to navigate these changes and continue providing excellent service to both buyers and sellers. The segment aims to clear up misinformation and provide a realistic understanding of the NAR Settlement’s implications on the real estate industry.

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Read the Full Transcript For 'Anthony Speaks on Boston25 News about Proposed NAR Settlement Misconceptions'

Gene Lavanchy: You probably read about it, big changes coming to the real estate industry, commissions realtors get for helping someone buy or sell a home are changing, those costs are coming down. The National Association of Realtors agreed to settle a lawsuit which will change the structure of commission payments, and most certainly will change how an agent for a buyer gets paid. If you’re thinking this is going to bring down the price of homes in the market, probably not.

We bring in the founder, CEO and broker of Lamacchia Realty, Anthony Lamacchia. Good morning to you, Anthony. I saw your social media post over the weekend and you were railing against a lot of what you say is misinformation being reported of the potential impact of all of this. It is complicated, but first in a condensed way, explain what happened.

Anthony Lamacchia: Everyone keeps talking as if this settlement has something to do with what realtors charge. That’s the biggest misconception that I’m seeing. I saw another news outlet this morning that said 5% and 6% non-negotiable fees are gone. I wish fees were non-negotiable. Us realtors wish it was that easy. It is not. We have been getting negotiated with from sellers for many, many years, and that’s capitalism. I’m being a wise guy when I say I wish, but that’s how it goes. We’ve been getting negotiated for several years.

The way we go about getting paid is what is potentially going to change here. This is a proposed settlement that the National Association of Realtors made with some plaintiffs and some plaintiff’s attorneys who are out to disrupt our business. They’re not really out to help consumers. They’re not really going to help consumers. In fact, some of this might actually likely will make things harder on a first time buyer, not easier.

Gene Lavanchy: A standard 6% thing of the past, I didn’t know it was a standard six 6%. The deals I’ve always worked with, we’ve negotiated at least around here. Let’s go through some of the specifics of this. Will this drive down the price of homes?

Anthony Lamacchia: There’s no way it will drive down the price of homes. Home prices are affected by supply and demand. Right now in the Northeast, we have a very low amount of inventory. Prices have been going up. We’re in the season right now as we’re talking that we’re at the peak of multiple offer situations and buyer frenzies on homes. There’s no way that prices are just going to somehow mysteriously drop. Any viewers that are seeing that in the news need to understand that that isn’t true and that that’s being misreported by many outlets.

Gene Lavanchy: Sellers could save money here. If I come to you and say, Anthony, all right, I’d like you to sell this house, but I want four 4%. That’s the max I want to pay you. You will negotiate those fees, correct?

Anthony Lamacchia: That’s always been the case. As long as I’ve been doing this 19 and a half years, home sellers have been asking questions about, “Hey, can the fee be X, can the fee be Y?” This has been going on for a long time. I think the part that people are misunderstanding is the argument that the plaintiff’s attorneys made is, it shouldn’t be that the seller pays the buyer agent’s commission. Under the current mortgage finance system, you can’t just take a commission and plop it on top, add it on top to what you are paying for a home.

You can’t do that. That’s why its always been somewhat baked in and the sellers have agreed to share it. If I was a home seller, I strongly recommend all home sellers to still have a willingness to offer compensation to a buyer’s brokerage, to the agent that brings the buyer. If you’re not willing to do that, if you take a hard stance and you believe these faulty news reports that say a seller shouldn’t have to pay, that’s okay, you can do that but let’s see how many buyers show up to your home.

You’re going to eliminate the buyer pool, eliminate a lot of people from your buyer pool because a lot of buyers are going to say, “Well, I haven’t got the money to come out of pocket to pay that,” especially first-time buyers or veterans buyers, VA buyers. People aren’t going to say, “Oh, yes, I have the money for the down payment of the closing costs and hey, no problem, I’ll pay the commission on top.” Maybe some second-time buyers, third buyers, older buyers, but in particular, first-time buyers are not going to have the money to do that. I strongly recommend to home sellers to still have a willingness to share part of that compensation or offer some compensation to the buyer agent’s brokerage. They just can no longer do it in the MLS if this is approved, supposedly as of July.

Gene Lavanchy: Are buyers’ agents going to be a thing of the past now? If that the buyers are on hook to pay the agents, what does that mean for the future of buyer agents?

Anthony Lamacchia: Gene, one thing I’ve learned in this business is you cannot stop consumer behavior. All these negative articles, obviously, they’ve turned up dramatically since Friday, but there’s been a lot of negative news around real estate and the use of a realtor since October when this wrongful verdict came down in Western Missouri, and nothing has changed. Buyers are still going on Zillow and clicking contact agent, going on, clicking contact agent. We have droves of buyers coming to our company to buy homes.

Over 90% of transactions nationally are co-broked, meaning there’s two brokers. I don’t see that changing very much. Maybe temporarily it’ll dip for a while, but people know that they need a realtor when they’re buying a home. If they go directly to a listing agent, that listing agent is doing what is in the best interest of the seller, and that is what they are contractually bound to do.

Gene Lavanchy: We’ll see how it all shakes out, and certainly a lot more to be talked about here. Anthony Lamacchia, we always appreciate your insight and your expertise. Good to talk to you, Anthony.

Anthony Lamacchia: Same to you. Thank you for having me on.