The DOJ Wants to Totally Change How We Buy Homes

How a major antitrust case could change the way homes are bought and sold, opening new opportunities for investors and operators

The National Association of Realtors is not having a good time. Between a raft of antitrust litigation, blackmail, accusations of sexual harassment, leadership churn, and exhaustion of liability insurance coverage, the US’s largest trade association—representing 1.6 million real estate agents nationwide—is in deep trouble.

But for all the salacious headlines, one recent case stands above the rest, threatening to fundamentally rework how homes are bought and sold: Nosalek vs MLS PIN. Two weeks ago, the DOJ came out strongly in favor of “compensation decoupling”, meaning that listing agents can no longer offer blanket compensation to buyers’ agents. So home buyers will need to pay for their own agents, a shift with potentially massive ramifications for the market and a watershed moment for new approaches to the home-buying process.

Today’s letter will go a bit outside Thesis Driven’s normal CRE comfort zone to explore the tumultuous world of residential brokerage. We’ll cover:

• The major lawsuits facing the NAR;

• A deeper dive into Nosalek;

• Implications for the residential market and listing portals, including thoughts from Spencer Rascoff, founder of Zillow;

• A conversation with Mauricio Umansky and Jason Haber on their new NAR alternative;

• Potential opportunities for operators and entrepreneurs as well as implications for major players.