Newfound’s Perspective on the NAR Settlement and the Path Towards Industry Transformation

Friends of Newfound,

I am writing to discuss the recent developments surrounding the National Association of Realtors (NAR) landmark settlement in the Sitzer|Burnett case. This pivotal event marks a significant turning point for the real estate industry and the consumers it serves. As CEO of Newfound, which encompasses our innovative brokerage brands Trelora, Houwzer, and HomeRise, I would like to outline our perspective, strategic response, and actions to leverage this moment – a moment we’ve been preparing a decade for.

The settlement, announced on March 15th, ushers in a series of reforms to foster a more consumer-centric approach to real estate transactions. While these reforms will not immediately alter the industry overnight, they signify essential steps that will inevitably move us towards fairness, transparency, and choice – values Newfound has always championed.

Embracing Industry Evolution

At Newfound, we view these changes not as a challenge but as an opportunity to further our mission of placing consumers at the forefront of all we do and providing more value to our clients. Now is the time to capitalize on this opportunity and win the hearts and minds of consumers.

Key Settlement Features

2. Direct Negotiation of Cooperative Compensation: This aspect empowers buying and selling parties to negotiate cooperative compensation directly, dismantling MLS-listed standard arrangements. This fosters a more flexible and consumer-aligned approach to real estate transactions.
3. Diverse Buyer Broker Compensation Options: The settlement introduces varied compensation models for buyer brokers, including (but not limited to) fixed fees and seller concessions. This flexibility caters to diverse consumer preferences, enabling more personalized service offerings.
4. Mandatory Representation Agreements: Ensuring transparency and informed consent, buyer brokers must now establish clear agreements with clients before home touring, detailing services and costs.

Newfound’s Proactive Initiatives

We are on the cusp of a transformative era that could see the U.S. real estate market align more closely with practices in other developed markets. In anticipation of these industry shifts, Newfound is taking decisive steps today to shape the Real Estate industry of tomorrow:

• Introduction of a Buyer Rebate Program: Beginning April 1st, our core brokerage brands (Houwzer and Trelora) will start rebating half of the buyer’s agent commission to the client. This initiative preludes our consumer-oriented commission structure, which will launch in July, in conjunction with industry changes going into effect.
• A La Carte Pricing via HomeRise: Launching customizable, flat-fee services, HomeRise will extend a la carte options to buyers, enhancing consumer choice and flexibility – i.e. flat-fee offers, pre-paid showings, etc.
• A Hiring Sprint for Top Talent: We recognize the importance of skilled agents in this new landscape and seek professionals who embody our consumer-first ethos in our growing footprint and who desire a stable profession in a dynamic market.

Moving Forward Together

This settlement represents both a challenge and an opportunity for the real estate sector. Newfound is poised not only to navigate these changes but to lead the way in shaping a more consumer-focused, efficient, and transparent marketplace.

Our eleven years of dedication to innovation, consumer value, and ethical practices positions us uniquely to take full advantage of these industry-wide changes. I invite you to join us in this journey as we continue to challenge the status quo and redefine the real estate experience for consumers nationwide.

Thank you for your continued support and belief in our vision. Together, we will seize this moment to advance our mission, transform the Real Estate industry, and continue finding better ways to serve consumers.

Best,

Mike Maher

CEO, Newfound

P.S: I posted a similar announcement on LinkedIn here. If you engage with the post I made there, it would be very helpful in increasing the reach of that post and our message. Thanks!