The Football Metaphor that Changed the Real Estate Game

Last year, plaintiffs in the Sitzer-Burnett class action lawsuit took their claims to a jury in Missouri claiming that the commission-sharing structure, long an industry norm, was anti-competitive and unlawful. During the trial, plaintiffs attorney Michael Ketchmark helped explain the ludicrousy of the cooperative compensation structure via an analogy that’s relatable to all: football! 

When describing the compensation structure he compared the seller of an agent paying the buyer like the opposing team paying the coach of their opponent. 

When the Kansas City Chiefs host the Denver Broncos, we don’t pay for their coach’s salary. When you sell your home, why are you paying the buyer’s agent? 

This immediately resonated with the jury, not just because this Missouri jury loved their Chiefs, but because it was common sense. The jury found the realtors and large brokerages at fault and this past March the parties settled in a landmark case. 

Sellers no longer have the pressure to automatically pay for the buyer’s agent’s commissions and we are already seeing many refuse to do so. On the flip side, buyers need to be ready to pay for their representation. We are already seeing many homebuyers getting screwed with crazy mortgage schemes to get their fees covered–something we are only going to see more of. 

Buyers–beware when you sign a buyer’s representation agreement and NEVER assume the seller of your house is going to cover this. 

For those wanting a different alternative, check out Shay, where we can help you self represent and save tens of thousands of dollars.