Do No Harm to Homeownership

The outcome of the class action lawsuits and the subsequent Realtor® settlements are still evolving. The settlements have yet to be approved by the judges overseeing all the cases. At the center of the debate is how agents who represent buyers should receive their compensation. Competent buyer’s agents are essential to the homebuying process. While the terms of the settlements do not explicitly prohibit the practice of broker cooperation, the Justice Department and some consumer advocates have expressed that they would like to see it abolished altogether. This is a grave concern to many of us who advocate for minority homeownership and first-time homebuyers. If burdened with the added cost of having to pay their own agent fees, many would-be buyers could not afford to do so. The additional burden would either cause them to forgo purchasing a home altogether or prompt them to move forward without agent representation, leaving them vulnerable to a host of risks.

The National Association of Hispanic Real Estate Professionals (NAHREP) supports innovation in the industry, and solutions that improve affordability, reduce unnecessary barriers and enhance the buyer experience. However, NAHREP urges industry stakeholders, policymakers, and housing advocates to address these issues by first adopting a Do No Harm principle by agreeing that any major disruption to the housing industry should begin with a commitment to avoid harm to the homebuyer population that can least afford additional burdens placed on them. NAHREP advocates for the protection of broker cooperation in an effort to continue the work towards a more equitable housing ecosystem, and calls on government, consumer advocates and the entire housing industry to join us in this pledge.

What's at stake?

• Raises the bar for first-time buyers
• Tips the scale towards wealthy and institutional buyers
• Increases the likelihood of fair housing violations, pocket listings, and other abuses
• Hurts small businesses