Keller Williams President and CEO Mark Willis talks about his return to the Texas franchisor and how fee litigation could spark an intense round of brokerage and agency consolidation I talked about that.
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Mark Willis, president and CEO of Keller Williams, has read the tea leaves and foretells a new wave of consolidation as buyer-broker fee structures change. There is.
mark willis
“We’re probably going to see some consolidation in this industry, probably one of the biggest waves we’ve ever seen,” Willis said. real estate news on tuesday. “I think a lot of brokerage owners who lead independent real estate companies are considering their options right now.”
Willis did not specify the challenges independent brokers may face as the industry prepares for a post-settlement world.
On April 23, the National Association of Realtors received preliminary approval of the terms of the settlement, which includes $418 million in damages and the removal of cooperative compensation details from multiple listing services. The proposed settlement also requires MLS participants to sign a buyer representation agreement prior to home tours. Final approval is not expected until November. However, the changes he is expected to take effect in July.
In addition to preparing new fee structures, brokerage firms with more than $2 billion in annual trading volume have a looming deadline to agree to the NAR settlement. Some franchisors like Keller Williams and brokerages like Compass have already secured multi-million dollar settlements.
The remaining lots, which include large independent brokerages in the country, must be opted in by June 18th and deposited into escrow in an amount equal to the brokerage’s average annual total trading volume over the last four calendar years multiplied by 0.0025. be. account.
“If you don’t have the ability to pay that amount, [they must] Participate in non-binding arbitration with the plaintiff at your own expense,” a previous Inman article explained. “As an example of the first option, a brokerage firm with his $2 billion annual average gross trading volume would have to pay $5 million.”
Willis said the settlement could lead to the consolidation of the industry’s agents, which at best estimate exceeds 1.5 million people. He said some agents may be leaving behind a career in real estate. However, he expects new agents to come in and quickly adjust to the new sales environment. Keller Williams is already taking advantage of this with a number of updated training and education courses.
“What I do know is that best practices will start to emerge,” he said. Len. “If we stay calm and don’t overreact…this industry will not only survive this, but thrive.”
Despite having nearly 40 years of experience and insight, Willis said his predictions are just that: predictions.
“At this point, we honestly don’t know,” he said. “It’s all speculation.”
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