W
atch Steve Brobeck's conversation as a consumer advocate shares his concerns about real estate industry practices. As a senior fellow at the Consumer Federation of America, Brobeck emphasizes that his organization is not anti-industry but rather advocates for consumers through research and education.

    Brobeck argues that what the industry calls cooperative compensation may be seen as price fixing or facilitating high rates. He believes buyer agent commissions cannot be negotiated and most listing agents won't negotiate their commission either. His recommendation is to have more negotiation, with lower commissions in the 2% range for each side of the transaction.

    Regarding the Sitzer/Burnett verdict, Brobeck thinks the jury's decision was swift due to a lack of fairness in requiring sellers to compensate buyer agents. He believes industry leaders know that future juries will render similar decisions if given the chance. In a normal marketplace, buyers and sellers would negotiate agent compensation separately, but instead, a century of industry practice has led to a culture supporting the lack of price competition.

    Brobeck also discusses the low bar for entry into the real estate profession and the consumer-unfriendliness of many buyer agreements and contracts. His influence extends beyond his organization, with the DOJ seeking his input on industry practices.