Sitzer | Burnett Verdict Reinforces Newfound’s Commitment to Fair, Cost-Effective Real Estate Practices.
PHILADELPHIA – (November 6, 2023) – The Sitzer | Burnett verdict represents the first domino in a seismic shift in the residential real estate industry. On behalf of consumers everywhere, the jury has spoken – the National Association of Realtors (NAR), alongside the largest traditional brokerages, conspired to artificially inflate commissions paid out to those real estate brokerages. This unanimous and quick decision by a jury of consumers indicates a desire for more equitable and transparent real estate transactions. This will pave the way for broader adoption of alternative, cost-saving approaches such as those championed by companies like Newfound.
This verdict is the first of many and unequivocally echoes Newfound’s North Star – “Consumers genuinely want a solution that allows them to sell their homes for the highest price without overpaying on commissions,” said Mike Maher, CEO at Newfound. “Inflated commissions and buyer steering have plagued the American consumer for far too long. The entire system has been set up to preserve brokerage commissions as opposed to preserving consumer equity.”
Since its establishment over ten years ago, Newfound has been dedicated to the alternative – introducing transparent real estate models with fair pricing. It started with launching next-gen brokerages Houwzer and Trelora providing 1% listing fees, flexible buyer broker fees, and bundling rebates. More recently Newfound launched HomeRise, offering a flat-fee DIY listing platform. Combined, the Newfound brands have saved homeowners an astounding $420 million in commissions with its pro-consumer models.
With a relentless commitment to maximizing value and minimizing costs, Newfound continues to spearhead the transformation toward honest real estate solutions. We’ll continue to work with like-minded consumer-centric companies. At the same time, we look to engage with industry reformers as they evaluate the next steps in creating a more transparent and trustworthy real estate process for consumers.
While many traditional brokerages will be left scrambling with both a commission and compensation structure change, we wholeheartedly welcome this pivotal verdict. In fact, in a world where buyers may pay their agents directly, our employee model of highly-trained, professional agents prioritizes fiduciary and expertise, while properly aligning incentives with consumers.
We look forward to a more equitable real estate landscape, reaffirming our resolve to be at the forefront of industry reform.
About Newfound: Newfound is a national real estate brokerage and technology company committed to make buying, selling, and investing in real estate more cost-effective and rewarding for consumers and institutions. Newfound partners with our clients to understand their unique needs and goals. It leverages its extensive network of top-rated salaried agents and integrated real estate services to deliver an exceptional experience at honest prices.
Newfound® brands include Houwzer® (brokerage), Trelora® (brokerage), HomeRise® (flat fee, DIY listing platform), Dash™ (transaction management software), Newfound Enterprise (institutional partnerships), and Newfound Title (fig 1, brand matrix). To learn more about our vision and services, visit newfoundgroup.com.
Maximizing value, minimizing costs. Your partner in smart real estate solutions.