The cooperative MLS model is being weakened as listings move first through brokerage and portal networks, shifting control of visibility, access, and transaction flow away from the open market.

Real Estate Brokerage Consolidation | The Portal Wars | MLS Authority

Is This The End Of The MLS As We Know It?

The answer is: soon, very soon - the end is near.

The cooperative model the MLS was built on is being systematically dismantled.

Something fundamental has shifted in American real estate, and most consumers have no idea it happened.

Over the past 120 days, a sequence of acquisitions, alliances, lawsuits and policy reversals produced a market structure that looks less like a competitive marketplace and more like an oligopoly.

A market where a small number of very large platforms control who sees listings, when they are previewed, and through which brokerage channel. A market where the power of the regional MLS is in decline.

If you buy or sell a home today, this restructuring will shape your experience.

Whether you know it or not.

What Is The MLS?

The MLS, or Multiple Listing Service, is a shared database where brokers post homes for sale. There is no single national MLS. It is a network of regional systems.

In Los Angeles the main one is CRMLS, the California Regional Multiple Listing Service. When a broker lists a home, every other participating broker can see it right away.

That data then is syndicated, or is shared, to sites like Zillow and Redfin. These platforms, or portals, do not create the listings. They receive them.

The MLS is the source. Everything else is distribution.

The Acquisition That Started It All

The Compass Anywhere deal is the single largest concentration event in American residential real estate history.

On January 9, 2026, Compass, Inc. completed its acquisition of Anywhere Real Estate in an all-stock deal valued at approximately $4.2 billion including assumed debt. The combined entity, now operating as Compass International Holdings, absorbed Coldwell Banker, CENTURY 21, Sotheby’s International Realty, Corcoran, ERA Real Estate, and Better Homes and Gardens Real Estate.

340,000 affiliated agents. Every major U.S. market. Roughly one in four residential transactions nationally.

In Manhattan, the combined entity’s share of residential sales by dollar volume exceeds 70 percent. In San Francisco, it exceeds 50 percent.

These are not competitive market shares. They are the kind of concentrations that the DOJ and FTC’s own 2023 Merger Guidelines identify as exceeding the 30 percent threshold that “may indicate a merger’s effect may be to eliminate substantial competition.”

Why did regulators allow the Compass Anywhere deal to close?

The Hart-Scott-Rodino antitrust waiting period expired without public comment from either the DOJ or the FTC. The deal closed months ahead of its originally projected late-2026 timeline.

What has since emerged is more specific than a passive non-intervention. Reporting from the Wall Street Journal and Bloomberg indicated that Gail Slater, then-head of the DOJ Antitrust Division, sought an extended review of the transaction. She was overruled by Deputy Attorney General Todd Blanche after Compass enlisted Mike Davis, a well-established lawyer, to appeal directly to senior DOJ leadership.

A DOJ spokesperson stated the agency “complied with its obligations” and that “nothing precludes the department from taking an enforcement action in the future.” That non-answer is its own answer.

REAL ESTATE MONOPOLY

What U.S. Senators and Wall Street analysts said about the acquisition?

Senators Elizabeth Warren and Ron Wyden sent a formal letter to the DOJ and FTC warning that the merger could raise costs for homebuyers and sellers by reducing competition.

Senator Warren stated publicly: “The Trump administration has rubber-stamped a deal that will make things even worse” for American families facing a housing crisis.

Industry M&A advisor Steve Murray said: “I was very surprised the FTC and DOJ didn’t have any strong comments. Under their own guidelines, they seemed to have enough reason to comment.”

The approval did not settle whether this concentration benefits the market. It established how much concentration the current regulatory environment will tolerate. I covered the structural implications before the deal closed, in Real Estate Brokerage Consolidation | The New Power Grab, and earlier in the Native Angelino Newsletter (2022), when consolidation and commission pressure was rising and visible to anyone paying close attention.

The Alliance That Changed the Listing Game

The Compass-Rocket-Redfin alliance is the operational consequence of the merger. It is also the second antitrust event hiding in plain sight.

Six weeks after the Anywhere deal closed, Compass International Holdings and Rocket Companies announced a three-year strategic alliance. Rocket had acquired Redfin for $1.75 billion in July 2025.

The structure is the closest thing the industry has seen to what analysts call the “holy grail of real estate”: a unified ecosystem connecting home search, brokerage, and mortgage financing inside a single affiliated network.

Compass’s proprietary ‘Coming Soon’ and ‘Private Exclusive’ listings now appear on Redfin.com before reaching the MLS. Redfin draws nearly 2 billion visits annually. The alliance gives those listings access to 60 million potential buyers, all routed back to Compass agents.

500,000 additional listings on the Redfin platform. Over 1 million buyer inquiries directed to Compass agents over the term of the deal. Rocket Mortgage is embedded in the Compass platform with preferred pricing: a one-percentage-point rate reduction for the first year of a loan.

How does this Alliance affect the MLS?

Compass CEO Robert Reffkin stated directly: “With the Rocket Redfin partnership, I’m confident that MLSs and Zillow will no longer be in a position to force brokerages to make their proprietary data public.”

That sentence is the whole story. Compass, Rocket, and Redfin subsequently sent an open letter to MLSs across the country, CRMLS included, stating that the MLS is now one path to public marketing. Not the only one.

The financial logic is direct. By keeping listing search, agent representation, and mortgage financing inside one affiliated network, Compass International Holdings can capture both sides of a transaction and the mortgage origination, without routing revenue through Zillow or a cooperative MLS.

At that scale, internal capture is not a feature. It is the business model. I wrote about this dynamic in detail in Private Listing Networks | The Fight Over Residential Real Estate.

The Zillow Ceasefire: What It Reveals

The Compass-Zillow lawsuit ended not with a ruling on the merits, but with a negotiated retreat by both sides. The underlying antitrust question was never answered.

Compass sued Zillow Group in June 2025, alleging that Zillow’s Listing Access Standards, which threatened to ban listings publicly marketed outside the MLS, constituted an antitrust violation and an illegal monopoly over online home listings.

A federal judge in Manhattan denied Compass’s request for a preliminary injunction in February 2026, finding no clear showing of monopoly power even with Zillow’s estimated 66 percent share of consumer portal traffic.

On March 17, 2026, Zillow launched Zillow Preview, offering prime portal placement to brokerages that share pre-market listings directly with Zillow before MLS activation. On March 18, Compass dropped its lawsuit without prejudice.

What did both sides actually get from the ceasefire?

Compass received portal distribution for its exclusive inventory without MLS dependency. Zillow received Compass listings, and the consumer traffic they generate, without having to defend its monopoly position in court.

Neither side pressed the antitrust question to a legal resolution. The ceasefire is real. The underlying structural questions about portal dominance and consumer access remain open.

Zillow’s own prior research found that sellers who market off the MLS receive a median of $4,975 less per transaction nationally. In California, that gap reached $30,075, or 3.7 percent below comparable MLS-listed properties. That data did not lead the Zillow Preview announcement. It never does.

I covered the portal control mechanics in depth in Zillow Preview | How Portal Control Hurts Buyers and Sellers.

What This Means for Independent Brokerages and Consumers

The firms most exposed to this consolidation are not boutiques and not mega brokerages. They are midsize regional firms, squeezed from both directions at once.

From above, Compass International Holdings, Zillow Preview, and the Rocket-Redfin platform offer premarket distribution tools, preferred portal placement, and recruiting packages that midsize firms cannot match.

From below, portal-driven lead generation captures consumer attention before a local brand is ever in the frame.

The MLS, which has functioned as the cooperative backbone of residential real estate for decades, is accelerating its own decline alongside this.

The number of MLSs operating in the United States fell below 500 for the first time in 2025. As of December 31: 484, down from a peak of roughly 850 in 2015. A 43 percent decline over a decade. Thirty MLSs closed in 2025 alone.

What does consolidation mean for Los Angeles buyers and sellers specifically?

Los Angeles buyers and sellers face the sharpest version of this concentration problem. The combined Compass Anywhere entity commands dominant share in the LA market, CRMLS, one of the largest MLSs in the country, is at the center of the open letter dispute, and California sellers showed the steepest financial losses from off-MLS marketing in Zillow’s research.

Every major player in this consolidation wave is using the same language. Sellers get flexibility. Buyers get earlier access. The system becomes more efficient. Choice expands.

These are not fabricated statements. They are incomplete statements. The gap between what is said and what is incentivized is where consumers get hurt. When the listing agent and the buyer’s agent work for the same 340,000-agent platform, seller interests and buyer interests are not necessarily aligned.

For consumers, the question is not whether to use a large brokerage. The question is whether the advisor across the table is aligned with the client or with the platform. I wrote about this structural tension in Real Estate Agents Pay The Price on 1929.live in April 2024, and in my YouTube analysis of the Compass Anywhere Deal. Both written before the current consolidation and as the wave of alliances gained momentum.

The New Map

The consolidation now underway is not a technology story, a consumer story, or an efficiency story. It is a market structure story. The structure is largely set.

Zillow Group is pressing forward as an AI-native housing platform with 235 million average monthly users, integrated transaction infrastructure spanning search, touring, financing, and closing, and mid-teens revenue growth forecast for the year.

Compass International Holdings is executing on scale, internal deal capture, and platform distribution. Rocket Companies is building the mortgage layer underneath both.

The MLS risks becoming secondary distribution: one node in a broker-controlled network rather than the open marketplace it was designed to be. As brokerage consolidation accelerates, the firms that manage integration well will retain talent.

Those that don’t will face the agent churn that has historically followed every large brokerage merger. Compass International Holdings is managing 340,000 agents across dozens of brands with different cultures, commission structures, and technology platforms.

The deals are largely done. The integration challenges, regulatory questions, and competitive responses are just beginning.

Frequently Asked Questions

What did Compass Buy Anywhere and Why does it matter?

The Compass-Anywhere merger closed on January 9, 2026, combining the two largest U.S. residential brokerages in an all-stock deal valued at $4.2 billion including debt. The combined entity, Compass International Holdings, now operates with approximately 340,000 affiliated agents and accounts for roughly one in four U.S. residential transactions.

In Manhattan, the combined firm controls over 80 percent of sales by dollar volume. The deal passed antitrust review without public comment from the DOJ or FTC, despite exceeding market concentration thresholds outlined in the agencies’ own 2023 Merger Guidelines.

Why did the DOJ and FTC not block the Compass Anywhere deal?

The Hart-Scott-Rodino antitrust waiting period expired without a second review request, allowing the deal to close. Reporting from the Wall Street Journal and Bloomberg indicated that DOJ Antitrust Division head Gail Slater sought an extended investigation but was overruled by Deputy Attorney General Todd Blanche after Compass engaged Mike Davis, a powerful attorney, to appeal to senior DOJ leadership. The DOJ stated it “complied with its obligations” and that future enforcement action remains possible.

What is Zillow Preview and how does it affect home sellers?

Zillow Preview, launched March 17, 2026, allows partner brokerages to place pre-market listings on Zillow and Trulia before full MLS activation. Sellers are offered early exposure and broader visibility.

However, Zillow’s own research found that sellers who market homes off the MLS receive a median of $4,975 less nationally, with California sellers losing a median of $30,075, or 3.7 percent below comparable MLS listed properties. The program gives Zillow first position control of listing distribution in exchange for visibility benefits whose net value to sellers is not yet independently established.

What happened to the Compass lawsuit against Zillow?

Compass filed an antitrust lawsuit against Zillow in June 2025 challenging Zillow’s Listing Access Standards. A federal judge denied Compass’s request for a preliminary injunction in February 2026, finding no clear showing of monopoly power.

On March 18, 2026, Compass voluntarily dismissed the lawsuit after Zillow relaxed its standards and launched Zillow Preview. The dismissal was without prejudice. Compass can refile. The antitrust question about Zillow’s portal market share was never adjudicated on the merits.

What is happening to the MLS system in the United States?

The number of MLSs operating in the United States fell below 500 for the first time in 2025, reaching 484 as of December 31, a 43 percent decline from a peak of approximately 850 in 2015. Thirty MLSs closed in 2025 alone.

Consolidation is driven by rising legal compliance costs and the pressure for operational scale. Simultaneously, private listing programs, portal preview deals, and off-MLS distribution channels are reducing the MLS from the primary cooperative marketplace to one of several competing distribution nodes, each controlled by a different platform alliance.

Analysis By

Tom Levine | Native Angelino Real Estate | Los Angeles

25+ years in capital markets. USC Marshall School of Business. Claremont Colleges. London School of Economics. California real estate broker since 2017. Writing on commission compression, brokerage economics, and market structure since 2022.

Before Sitzer Burnett. Before Compass Anywhere. Before the portal wars reached their current scale. The analysis here is independent. No portal agreements. No platform incentives.
Native Angelino with Tom Levine | YouTube

INDEPENDENT. FOUNDER LED. CLIENT FOCUSED. WE KNOW LOS ANGELES

Native Angelino Real Estate does not participate in portal incentive structures. No Compass alliance. No Zillow preferred agent program. No internal matching incentives. No debt service obligations that require volume at the expense of judgment. The only alignment here is with the client.

Tom Levine | Broker | CADRE 02052698
Los Angeles | Beverly Hills, CA 90209
(213) 915 6161 | LinkedIn

Schedule a Consultation

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In this episode of The Native Angelino Podcast, I am joined by Adam Phillips, CFA of EP Wealth Advisors. We discuss equities, interest rates, gold, bitcoin, alternative investments and the current political climates impact on the Federal Reserve.

Will an interest rate cut stimulate the housing market? What about in cities like Los Angeles where residential real estate prices far exceed national averages?

Adam oversees portfolio strategy for his firm and provides insights on the current economic climate and outlook for the coming quarters.

Chapters

00:00 Intro - Market Volatility and Economic Uncertainty

00:20 The Taco Trade

01:30 Tariffs and Their Economic Impact

04:30 Interest Rates and Federal Reserve Dynamics

07:09 Gold's Rise and Market Sentiment

09:45 EP Wealth Advisors

12:00 Real Estate and Client Portfolios

14:10 Interest Rates and Consumer Behavior

16:13 Market Valuations and Economic Disparities

17:36 Government Intervention and Market Dynamics

21:32 Digital Assets and Bitcoin's Role

27:00 Alternative Investments and Market Trends

33:05 Current Economic Focus and Fed Independence

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Summary - Priced For Perfection

In this conversation, Adam Phillips and Tom Levine discuss various economic factors affecting the market, including interest rates, Federal Reserve policies, tariff policy, gold as a safe haven, real estate investment strategies, and the impact of digital assets. They explore the current state of the economy, the challenges posed by inflation, and the implications of government intervention in the market. The discussion also highlights the differences in investment perspectives between older and younger generations, as well as the importance of financial planning in navigating these uncertain times. Takeaways Market volatility is influenced by economic uncertainty and government policies. Interest rates are a critical factor in shaping market dynamics and investor behavior. Gold is viewed as a safe haven amidst geopolitical risks and inflation concerns. Real estate remains a significant asset for many clients, especially in high-value areas. Alternative investments are gaining traction as a means to diversify portfolios. Lower interest rates could stimulate housing demand but may not significantly impact high-net-worth clients. Market valuations are currently high, raising concerns about potential downside risks. Government intervention in markets raises questions about the future of economic stability. Digital assets like Bitcoin are becoming more mainstream but remain highly speculative. Younger investors are more open to alternative investments compared to older generations.

🎧 Subscribe to the Native Angelino Podcast: https://bit.ly/Subscribe-NativeAngelino

Conversations with strategists, technicians, and culture shapers.
Smart insight from a Native Angelino perspective.

Adam Phillips, CFA^®, CAIA, CFP^®

Adam is a Chartered Financial Analyst (CFA^®), a CERTIFIED FINANCIAL PLANNER™ (CFP^®), and has been included on the Forbes NextGen Best-in-State Wealth Advisors 2019 list. He is a member of the CFA Society of Los Angeles and the CFA Institute. Adam helps establish asset allocation strategy as a member of the EP Wealth Investment Committee, which supports all EP Wealth Advisors and their clients. He is a graduate of USC and earned his MBA at UCLA.

About Tom Levine

Tom Levine is a Native Angelino and graduate of USC Marshall School of Business, the Claremont Colleges, and spent a term at the London School of Economics.

Native Angelino Real Estate, established 2017, for residential, commercial and investment related transactions. Additionally, he is a broker and certified Short Sale and Forclosure specialist under the National Association of Realtors. (CADRE 02052698)

L.A. locals state with pride, "You can surf in the morning and ski in the afternoon." Well, if you get a really early start, it's true. Sometimes.

Los Angeles is the City of the Angels, and Tom Levine is a Native Angelino.

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ANALYSIS BY

Tom Levine | Native Angelino Real Estate | Los Angeles

25+ years in capital markets. USC Marshall School of Business. Claremont Colleges. London School of Economics. California real estate broker since 2017. Writing on commission compression, brokerage economics, and market structure since 2022.

Before Sitzer Burnett. Before Compass Anywhere. Before the portal wars reached their current scale. The analysis here is independent. No portal agreements. No platform incentives.
Native Angelino with Tom Levine | YouTube

INDEPENDENT. FOUNDER LED. CLIENT FOCUSED. WE KNOW LOS ANGELES

Native Angelino Real Estate does not participate in portal incentive structures. No Compass alliance. No Zillow preferred agent program. No internal matching incentives. No debt service obligations that require volume at the expense of judgment. The only alignment here is with the client.

Tom Levine | Broker | CADRE 02052698
Los Angeles | Beverly Hills, CA 90209
(213) 915 6161 | LinkedIn

Schedule a Consultation

Neither the author, nor Native Angelino is a registered investment advisor, legal, tax professional or broker / dealer. All investment/ financial opinions expressed here are from the personal research, experience, and opinions of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate, occasionally unintended errors and misprints may occur. Do your Own Research please. Our content is for informational purposes only.

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McNally explains that despite political rhetoric, most companies are not rewiring their supply chains or committing to bold capital expenditures. Instead, they're absorbing the cost of tariffs—“from 15% margin to 14%”—and waiting. He describes how some reshoring announcements are simply “window dressing,” and why long-term capital remains cautious in an environment of policy uncertainty.

The conversation spans 27 years of market cycles, from the rise of LNG and shale to nuclear restarts, AI data center power demand, and how molten salt reactors are being dusted off as potential solutions. McNally offers a firsthand view into how institutions are evaluating risk—not based on headlines, but based on who’s spending real capital and who isn’t.

“We’re all going to have to be students again,” he says, as the industrial logic of the past returns to shape the next phase of global markets.

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About Peter McNally, CFA, Third Bridge

Pete has decades of experience in investment research and extensive buy-side experience as analyst and portfolio manager. He has a well developed network of C-level executives, policymakers, investors, consultants, and professional research analysts, he leads a team covering all aspects of IME (industrials, materials, and energy) across public and private, equity and credit, and commodity markets.

From his LinkedIn Profile:

How can we work together?
Do you have experience and something to say on natural resource industries, ESG, and industrials anywhere in the world? My team at Third Bridge Forum would love to talk. We reach thousands of investor clients around the globe every month through our hour-long, moderated interviews. No topic is too big or small, and we continue to grow.

Please get in touch.
Email: peter.mcnally@thirdbridge.com and ppmcnallyjr@gmail.com
Cell: +1 212 380 3303

Native Angelino With Tom Levine

“From a vantage point within sight of the Hollywood Sign, seated beneath a palm tree, Tom Levine takes you on a twisted, exploratory tour of popular thought, the upside-down theories of classical economics, politics, and other strange things.

Tom talks all things Los Angeles, bright new ideas, and complex topics of interest to creative thinkers and discerning skeptics.

L.A. locals state with pride, "You can surf in the morning and ski in the afternoon." Well, if you get a really early start, it's true. Sometimes.

Los Angeles is the City of the Angels, and Tom Levine is a Native Angelino.

ANALYSIS BY

Tom Levine | Native Angelino Real Estate | Los Angeles

25+ years in capital markets. USC Marshall School of Business. Claremont Colleges. London School of Economics. California real estate broker since 2017. Writing on commission compression, brokerage economics, and market structure since 2022.

Before Sitzer Burnett. Before Compass Anywhere. Before the portal wars reached their current scale. The analysis here is independent. No portal agreements. No platform incentives.
Native Angelino with Tom Levine | YouTube

INDEPENDENT. FOUNDER LED. CLIENT FOCUSED. WE KNOW LOS ANGELES

Native Angelino Real Estate does not participate in portal incentive structures. No Compass alliance. No Zillow preferred agent program. No internal matching incentives. No debt service obligations that require volume at the expense of judgment. The only alignment here is with the client.

Tom Levine | Broker | CADRE 02052698
Los Angeles | Beverly Hills, CA 90209
(213) 915 6161 | LinkedIn

Schedule a Consultation

Neither the author, nor Native Angelino/1929, is a registered investment, legal or tax advisor or a broker / dealer. All investment/ financial opinions expressed here are from the personal research, experience, and opinions of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate, occasionally unintended errors and misprints may occur.

Do your Own Research please. Our content is for informational purposes only.

The summer of 2025 has brought new stock market highs even in the face of tariffs, potential trade wars, shooting wars, a declining dollar and continued volatility across asset classes.

Katie Stockton, CMT is a nationally recognized expert in technical analysis and the founder of Fairlead Strategies, an independent research firm.

Her approach helps investors and advisors navigate complex markets through structure, not speculation.

Katie’s work encompasses all major sectors of the stock market, the bond market, gold, and bitcoin/crypto — with a disciplined, chart-driven method grounded in technical indicators and trend analysis.

This conversation was recorded in July 2025 as part of the Native Angelino Podcast with Tom Levine and is the third in the series with Katie. Links to the archived episodes are in the show notes.

About Katie Stockton
Katie Stockton, CMT is Founder and Managing Partner of Fairlead Strategies, LLC, an independent research firm and investment advisor focused on technical analysis. She is the portfolio manager for the Fairlead Tactical Sector ETF (TACK), launched in 2022.

Prior to forming Fairlead Strategies, Katie spent more than 20 years on Wall Street providing technical research and advice to institutional investors. She served as Chief Technical Strategist for BTIG and Chief Market Technician at MKM Partners, and worked with teams at Morgan Stanley and Wit Soundview.

Katie holds the distinction of being the youngest female to have attained the Chartered Market Technician (CMT®) designation in 2001. She has served as Vice President of the CMT Association and currently sits on the board of Cary Street Partners.

As an official CNBC contributor, she regularly shares market perspectives and is often quoted in Barron’s and MarketWatch.

—
🎧 Subscribe to the Native Angelino Podcast: https://bit.ly/Subscribe-NativeAngelino

Conversations with strategists, technicians, and culture shapers.
Smart insight from a Native Angelino perspective.

One year ago, Jason Haber organized a petition seeking the resignation of the National Association of Realtors (NAR) President Kenny Parcell. Within days, the executive was gone, and Haber's life had changed forever.

The petition's momentum, albeit rapid and fierce, can not compare to the tectonic shifts already in motion in the real estate industry. For years, multiple clusters of fanged lawsuits have worked their way through the justice system.  

Sitzer-Burnett vs NAR

The NAR and co-defendants lost a major battle and faced a monster penalty that stoked the fear of bankruptcy with a dagger looming close to their not-so-not-for-profit hearts.

The recent implementation of a DOJ and court-guided settlement (proposed) of the Sitzer-Burnett (and related) cases has changed and upended the staid and foggy practices of running a real estate business, ushering in a new era promising transparency and accountability.

If the Department of Justice stays quiet (unlikely) and the Court approves the recently implemented practice changes and settlement of the Sitzer-Burnett cases, the real estate industry may be on track to compete and operate ethically in the modern era.

These practice changes will undoubtedly require numerous iterations to perfect and reshape tired traditions embedded in U.S. real estate businesses. Whether or not the legacy trade association and old-line business models can adjust is to be determined.

American Real Estate Association

Jason Haber and Mauricio Umansky, CEO/Founder of the Agency, announced in January the formation of a new trade organization, the American Real Estate Association, which is billed as "built by agents, for agents."

The American Real Estate Association has the potential to become a significant alternative to the NAR. With a focus on modern tools and methods, it aims to avoid the bloat and rust of its elder industry mate.

Jason Haber Is Not Afraid

During this discussion, Haber was direct, clear, and personable, holding nothing back while describing the failings of real estate agents, brokers, brokerages and the national trade organization.

His commitment to improvement, good trouble, and forward momentum inspires confidence and a desire to get involved.

The winds of generational change apply not only to politics but also to the business of residential real estate.

Author’s Note

Haber declined to comment when asked if the plaid shirt worn during this interview is a nod to the current election cycle and the Vice-Presidential candidate.

American Real Estate Association | NYTimes

Haber Rattling - Agent Comes For The NAR | The Real Deal

Et Tu, Agent? Commission-Based Steering in Residential Real Estate

Publications and Podcasts by Tom Levine

Real Estate Consultant vs Real Estate Agent

Will The Realtor Settlement Be Approved

The Strategic Impact of the Sitzer-Burnett Settlement on Real Estate Practices

Real Estate Tokenization - Part 1

Stock Market Highs and Real Estate Risk

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license and the designation certified Short Sale Specialist under the National Association of Realtors. CA DRE #02052698

Schedule A Free Consultation

I consult on a range of transaction types and deal structures, I would be pleased to have a discussion. Schedule a call here.

Tom Levine, Real Estate Broker and Consultant

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

Real Estate Consultant vs Agent involves differences in role, preparation, and perspective, particularly in how market analysis, pricing, and strategy are approached in a transaction.

Real Estate Consultant vs Agent | Market Analysis, Pricing, and Negotiation

Which is the best choice for you?

In the intricate landscape of real estate transactions, choosing between a real estate consultant and an agent can significantly impact your experience and outcomes.

While both possess expertise, a real estate consultant often brings a distinct advantage through their comprehensive understanding of market dynamics, financial analysis, and negotiation strategies.

Unlike traditional agents, consultants provide data driven, unbiased advice tailored to your unique needs, leveraging their extensive knowledge and network to maximize your investment potential, and home-buying or selling experience.

What is the difference between a consultant and an agent?

Consultants offer strategic advice, requiring specialized knowledge, while agents focus on buying and selling.

Real estate consultants (if licensed) and agents may facilitate property transactions but differ in focus and education.

The most significant difference stems from their roles and level of preparation: a consultant provides expert advice on a range of topics, including real estate investments, financial and market analysis, neighborhood dynamics, pricing strategy, and negotiation, while an agent or broker primarily facilitates property transactions.

In truth, a highly qualified, experienced agent provides some of the services a consultant offers. A consultant, by definition, is expected to have the financial and analytical skills to support the investigation of alternatives and to analyze market dynamics.

In sum, real estate consultants, also known as real estate advisors, offer guidance to clients on residential and commercial properties, may assist in securing financing for real estate purchases, engage with property developers, and provide insights on special situation properties.

Can a real estate consultant also be a real estate agent?

Yes, a consultant can also be an agent or broker.

A subset of consultants are licensed as agents/brokers and are thus available to handle the research and the purchase/sale transaction.

In this case, a consultant provides service at the front end of the transaction in the form of research and advice and at the close of the engagement as a licensed agent or broker providing additional services of negotiation and document processing.

In my case, I am a consultant and a licensed real estate broker. I can be paid upon the close of sale (as a broker) or by fee-based agreement.

Combining a licensed broker and a consultant offers the best of both worlds. It makes sense!

The real estate consultant is the expert who provides reasoned and professional advice during the research and investigatory phases of buying, selling, and investing in residential or commercial property AND provides expertise and assistance negotiating the close of your purchase or sale transaction.

What does it mean to be a broker rather than an agent?

Both agents and brokers are licensed to assist in the buying and selling of real estate. When a deal is closed, each is paid a commission.

A real estate agent must work under a broker and may represent either the buyer or the seller.

A real estate broker has the duties of an agent but undertakes additional licensing requirements and, generally, must work in the industry for a period of years before qualifying to become a broker.

As exerted from the California Department of Real Estate:

A real estate broker is a special agent who is authorized by the principal to carry out certain defined acts within the course and scope of the agency established by the principal.

The real estate salesperson is an agent of the real estate broker, regardless of whether he or she is an employee for purposes of the Real Estate Law, or an independent contractor of the real estate broker for federal and state income tax reporting purposes.

The broker in the real property transaction is responsible for his or her salesperson, who acts as the broker's agent.

What is a realtor?

A realtor is a member of the National Association of Realtors (NAR) and may be an agent or a broker.

In California, as of year end 2023, there were approximately 205,000 members of the National Association of Realtors (NAR), roughly 90,000 real estate brokers and 225,00 real estate agents active in the State.

Source: NAR, Wikipedia, and private sources

In summation, the universe of real estate consultants that are also real estate brokers is a small subset of real estate professionals.

There are consultants such as John Burns Research and Consulting that offer excellent research targeted at developers, institutions, and professional efforts.

There are also consultants, such as myself, who are licensed real estate brokers. I have a background in financial markets and local real estate issues and focus on transactions in residential, commercial, and investment properties.

Schedule A Free Consultation

I consult on a range of transaction types and deal structures, I would be pleased to have a discussion. Schedule a call here.

Tom Levine, Real Estate Broker and Consultant

CA DRE #02052698

Publications and Podcasts by Tom Levine

Is Compass just Redfin on Steroids - article on LinkedIn

Real Estate Tokenization - Part 1

Stock Market Highs and Real Estate Risk

The above article is reprinted, with updates, from a LinkedIn post of March 2024.

Analysis By

Tom Levine | Native Angelino Real Estate | Los Angeles

25+ years in capital markets. USC Marshall School of Business. Claremont Colleges. London School of Economics. California real estate broker since 2017. Writing on commission compression, brokerage economics, and market structure since 2022.

Before Sitzer Burnett. Before Compass Anywhere. Before the portal wars reached their current scale. The analysis here is independent. No portal agreements. No platform incentives.
Native Angelino with Tom Levine | YouTube

INDEPENDENT. FOUNDER LED. CLIENT FOCUSED. WE KNOW LOS ANGELES

Native Angelino Real Estate does not participate in portal incentive structures. No Compass alliance. No Zillow preferred agent program. No internal matching incentives. No debt service obligations that require volume at the expense of judgment. The only alignment here is with the client.

Tom Levine | Broker | CADRE 02052698
Los Angeles | Beverly Hills, CA 90209
(213) 915 6161 | LinkedIn

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Social Media Savvy Businessperson

Approaching a staggering 1 Billion YouTube views, 780 million TikTok views, 10 million Instagram followers, 2.5 million monthly Spotify listeners with a 77% conversion rate, Pia Mia's reach is undeniable. 

Big numbers for the woman from Guam who came to LA as a 13-year-old girl.

Her music and creativity resonate with millions.

Since arriving in California, she has collaborated on a multi-platinum record, acted in feature films, developed a branding entity and, within the last two weeks, released her first book.

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A Cappella not Autotune

In an era of Autotune and AI voice generators, the ability to sing a cappella and unaided is ever more impressive. Make sure to get to the 00:37 mark.

Episode Notes

00:15 - Introduction

01:15 - Book Release

02:15 - From Guam to Hollywood via Urth Cafe

07:00- A Drake Cover, Kanye and Dinner

15:55 - Publishing vs Music Industry

19:00 - SAND, Sequins, and Silicone - a reading

22:00 - Anna Todd, After, Wattpadd

23:00 - Branding and Social Media

25:50 - Spotify engagement, TikTok, Instagram Live and YouTube

31:05 - A Multi-Platinum Story

35:30 - Helpful Business Tips From Pia Mia

Sand, Sequins & Silicone

Released May 14, 2024 by publisher Frayed Pages x Wattpad Books. Available at Amazon, Barnes and Noble and other major retailers.

Mentioned in the Episode

Madonna Names Pia Mia as Material Girl’s Fashion Director

Pia Mia Went Viral Covering Drake

Wattpad - The world's largest storytelling community

Anna Todd (writer/producer/influencer) is the New York Times best-selling author

Babyface

J Boog

Nic Nac

Renaissance woman - noun - a woman who has acquired profound knowledge or proficiency in more than one field.

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Recent Episodes

Real Estate Tokenization - Part 1

Do You Love Music and Democracy?

Virtual Healthcare - Telemedicine The Great Equalizer

Stock Market Highs and Real Estate Risk

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

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Episode Notes

00:20 - Introduction

05:30 - Dr. House and the Hospitalist

12:15 - Dragon software and AI

21:45 - MyPreOp

33:20 - Medical Missions

41:30 - Priventa Health

49:15 - Thoughts on the U.S.

51:20 - Solutions

53:30 - What to do to Improve Your Health

What Is MyPreOp?

Prior to COVID-19, telemedicine was not a reimbursable expense - under most circumstances. 

During the pandemic, CMS1 expanded reimbursement to include virtual care sessions just as for in-person medical visits.

A business model of no brick-and-mortar office, streamlined and standardized test protocols, traveling nurses and technicians, and access to the physician via video-based appointment.

At MyPreOp, we’ve set out to make the preoperative medical evaluation process simpler, safer, and more convenient. Thanks to telemedicine and virtual medical care, endless time spent in waiting rooms is a thing of the past. 

We incorporate all of the latest evidence-based guidelines in ensuring your preoperative evaluation is as thorough and comprehensive as possible.

We take care of the entire process from A to Z, from arranging home- based testing to delivering your results to your surgeon/proceduralist offices seamlessly.

What is Priventa Health?

A 501c3 non-profit organization dedicated to increasing primary care access and preventive health care across Central and South America.

Piggybacking on the construction of a brand new free school for the people of Colon, El Salvador, we will be treating patients with limited access to care in a multitude of specialties.

Gynecology, family practice, internal medicine, and pediatrics will all be represented. Medications will be distributed and some testing will be done free of charge.

These healthcare professionals are donating their precious time, energy and focus to this effort. In addition, we will also be traveling to a mountainous area of El Salvador with difficult road access near the border of Honduras.

Once medical issues are identified, we will develop targeted health education talks to the community using the school as a platform in order to further the goal of prevention of numerous medical illnesses to the benefit of the community.

The progress will be tracked carefully, and if successful, will serve as a model for disease prevention that can be distributed throughout the rest of Central and South America.

Sponsor A Medical Mission

Mentioned on the Podcast

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

Lessons From The British Empire

Strange as it may sound, the Tokenization of Real Estate has its roots in the British Empire of the early 1700s. 

Early, perhaps the first, examples of fractional ownership and securitization came out of this era when the British Government, by Act of Parliament and with the blessing of King George, sold shares in the South Sea Company to finance trade and to monetize government debt.

The South Sea Company came to prominence on the back of Crown-sponsored, despicable trade practices and decades of war on multiple fronts that eventually ended with the South Sea Bubble of 1720.

As the story goes, even Sir Issac Newton (the brilliant gravity guy) fell victim to the mania and groupthink 200 years before Charles Ponzi would execute his scheme.

The collapse highlighted the importance of understanding the core principles of investing and the fundamental need for a framework of government regulation for all innovative investment techniques.

The Importance of a Regulatory Framework

As we discuss the new wave of real estate ownership, remember to do your homework, use common sense, and invest for the long term.

Turning hard assets (homes and buildings) into financial assets (tokens and shares) increases the fungibility of the assets, the ease of trading, record-keeping, and the speed of transacting.

A system of rules and a compliance framework leads to trust in the marketplace and broader acceptance of any new asset class. 

The Example of Fine Art

Consider a work of art purchased from a Sotheby’s auction versus an unknown art dealer. 

In almost all cases, the provenance of the Sotheby’s purchase will be accurate and accepted, and the piece will be eligible for insurance and easy to trade. Less so for the piece acquired from the unknown dealer.

The same holds true for the Tokenization of Real Estate. A rules-based framework will lead not only to growth in the market but also increase confidence in the estimates of the value of the underlying assets.

In summary, while the South Sea Bubble and real estate tokenization are products of very different eras and technologies, they share similarities in the speculative nature of the investments, the enhancement of liquidity and market accessibility, as innovative financial instruments to attract a broader range of investors.

The Bubble left a lasting legacy of skepticism toward speculative investments, particularly among less sophisticated investors. Yet, it set the floor upon which regulated financial markets could be built.

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Understanding Real Estate Tokenization

Defining: Fractional Ownership and Securitization

Fractional Ownership

The definition of fractional ownership is quite simple. Think of breaking an asset into pieces so that many people can share ownership of the asset.

Each owner has a direct share in the property, and the value of that share changes as the asset appreciates or depreciates. 

Not a perfect example, but think of shares of stock or a mutual fund composed of direct ownership of homes and buildings.

Securitization

Securitization is the process of gathering loans or other assets representing ownership that may generate income, bundling them together, and turning them into a new type of security that can be sold to investors.

Think of a bond that represents a lending relationship and rights to a stream of income.

The Concept of Real Estate Tokenization

Tokenization means the conversion of real estate assets into digital tokens (fractions), which are then attached to and traded on the blockchain. 

The process of tokenization allows for fractional ownership of properties.

Each share or fractional ownership right is represented in the form of a token (think poker chip) that is in digital form.

This digital token is entered into a record or bank ledger of sorts known as the blockchain.

What is Blockchain?

Think of blockchain as a digital ledger or record-keeping system that's shared among many people all over the internet. 

It's like an extensive, secure database where numerous players/machines (nodes) simultaneously and independently verify the accuracy and authenticate each entry into the ledger. 

Multiple copies of the database are stored on separate servers across the internet, such that if one copy is corrupted or compromised, the replicas exist to exert authority and maintain the proper order and accuracy of the ledger.

The terms "distributed network" or "decentralized application (DAPP)" are fundamental concepts.

Each entry in this database is called a "block," it contains information about a specific transaction or group of data, like who sent money to whom or who owns a particular property. Stringing blocks together form a chain - the blockchain.

To summarize, an asset (house or commercial building) is broken into many ownership pieces (tokens), which are recorded in a digital ledger (blockchain).

Real estate tokenization is a process where property ownership is converted into digital tokens on a blockchain. 

These tokens represent a share or a stake in real estate assets and can be bought and sold on digital platforms. This method uses blockchain technology to create a secure and transparent way to fractionalize ownership, making real estate investment more accessible to a broader range of investors.

Enthusiasts argue that the fractional ownership model democratizes real estate investment, enabling individuals to invest in properties that were previously out of reach due to cost and complexity.

Understanding Blockchain Technology in Real Estate

In real estate, blockchain can be used to record property ownership, transactions, and other pertinent information. 

For example, when someone buys or sells a property, the transaction can be recorded on the blockchain, providing a secure record of ownership.

Benefits of Real Estate Tokenization

One of the key benefits of real estate tokenization is the potential for increased liquidity. Traditional real estate investments often lack liquidity, as properties can take time to sell and require significant capital to acquire. 

With tokenization, investors can trade their tokens on secondary markets, providing increased liquidity and flexibility.

Enhanced Accessibility for Property Owners and Investors

Real estate tokenization opens up investment opportunities to a broader audience by dividing properties into tokens. 

Investors no longer need large sums of capital to participate in real estate markets. Instead, they can purchase tokens representing fractional ownership, allowing for more diversified portfolios and reduced investment barriers.

Security

Blockchain technology, the underlying technology behind real estate tokenization, offers enhanced security. All transactions are recorded on a decentralized ledger, providing a tamper-proof record of ownership and transactions. This distributed nature of the blockchain reduces the risk of fraud and improves trust among investors.

Lower Entry Costs

Traditional real estate investments often require significant upfront costs, including legal fees, property management expenses, and maintenance costs. 

Real estate tokenization reduces these entry costs by allowing investors to buy fractional ownership stakes in properties. This lower barrier to entry enables more investors to participate in real estate markets.

Global Investment Opportunities

Real estate tokenization unlocks access to global real estate markets. Investors can diversify their portfolios by investing in properties around the world without the need for extensive legal and regulatory compliance. This global reach opens up new investment opportunities and reduces geographic limitations for investors.

This innovative approach should not be confused with speculation on Bitcoin or other digital currencies, primarily because it fundamentally pertains to tangible assets and property rights.

Toward an Efficient Market

Tokenization in real estate represents a shift toward a more granular, divisible, and accessible ownership of physical properties. Each token corresponds to a specific share of a property, backed by real-world value—be it a residential building, commercial space, or land. This direct link to a tangible asset grounds the tokens’ value.

Regulatory frameworks must continue to evolve such that tokens comply with laws concerning property ownership, financial reporting, and investor protection.

In summary, real estate tokenization is fundamentally about access to property investment and managing real assets through a modern technological approach.

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Coming Up - Part 2

Crowdfunding and Advanced Concepts in Real Estate Tokenization

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

Meet Emily White, a Founder of Collective Entertainment and the #iVoted Concerts and Festivals:

Support #iVoted

A passionate advocate on behalf of democracy, committed to increasing new voter registration and civic engagement.

#iVoted is a non-partisan 501(c)3 non-profit founded by entrepreneur Emily White, Mike Luba, and Pat Sansone of Wilco / The Autumn Defense.

#iVoted increases voter turnout by producing record-breaking events & activating entertainment venues to let fans in who show a selfie from outside their polling place or at home with a blank & unmarked ballot.

Cracking The Code - From Music Venue to Voting Booth

She has cracked the code - demographics and micro-targeting of music fans which pairs nicely with micro-targeting of voters and political engagement efforts.

Emily is a Visiting Fellow at Johns Hopkins and a planning committee member of the 2024 Elijah E. Cummings Democracy & Freedom Festival.

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The Musicians Roadmap

In 2020, the first edition of How to Build A Sustainable Music Career and Collect All Revenue Streams was published in conjunction with a podcast.

The methods and techniques described have received widespread acclaim.

Episode Notes

00:30 - Introduction

02:25 - Who is Emily White?

05:15 - Grandma and Grandpa White - Swimming and Special Olympics

07:20 - History of #iVoted

16:30 - Living Above the Politics - Elijah E. Cummings Democracy and Freedom Festival

23:25 - How To Build A Sustainable Music Career

26:20 - Mining Revenue from Big Data

29:30 - Prince - Musical Genius and Entrepreneur

33:35 - Your Website, Pre-Orders and Bundles

38:05 - A Billion Streams

39:50 - The Living Wage for Musicians Act

48:40 - Know Your Numbers and Your Art

53:05 - Top Trending Artists - Not Who You Think

59:00 - Blockchain, AI, IP, and Smart Contracts

1:01:05 - The Cellist with 1 million followers

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Mentioned in the Episode

We discuss streaming revenue and the range of payment per stream.

As an example, Taylor Swift was mentioned and the proper estimate of 2023 revenue is $100mm on 26.1 billion streams. That’s a very big number and a minor correction to comments made during our discussion.

Websites

beatBread - “Own your music, fund your career.”

bandcamp - “an online record store and music community”

Podcasts

Sports Management

Olympic medalists Anthony Ervin and Jay Litherland

Music

Zoe Keating, The Dresden Dolls, Amanda Palmer, Noel Gallagher, Kinto Soul, Certified Trapper

Venue

No Studios , interior design by Everick Brown

Photo of Emily White - Credit: Adrian Buckmaster

About The Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

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Let's Talk Diabetes Prevention and Care

38 million Americans have diabetes (about 1 in 10).

Approximately 98 million American adults -- that's 1 in 3, have prediabetes. More than 80% don't know they have it. 

The CDC reports that 18% of adolescents have prediabetes, and it’s on the rise.

Nearly 4 in 10 Americans are deemed obese. It is estimated that by 2035, the number will rise to 50% of the population.

Ultra-processed foods, sugary drinks, and a sedentary lifestyle have fed what the American Diabetes Association terms "an epidemic."

Lifestyle changes - diet and exercise - save lives.

Joining the podcast today is Lara Al-Dandachi, a Registered Dietitian Nutritionist (RDN), Certified Diabetes Educator, and Obesity specialist at UCLA Health's Gonda Diabetes Center.

We define and discuss diabetes, obesity, and even Ozempic.

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Episode Notes

00:15 - Who is Lara Al Dandachi?

01:12 - Increase in Obesity and Diabetes

03:40 - Type 1 vs Type 2

05:30 - Body Mass Index (BMI)

07:10 - GLP-1 Antagonists - Ozempic, Wegovy

11:38 - Ozempic and Pregnancy

14:35 - IMPORTANT - Diabetes and Prediabetes

16:45 - What are Beta Cells?

22:35 - Food and Drink to Eliminate From Your Diet

24:15 - Ultra-Processed Foods

26:45 - Mediterranean Diet

28:05 - Putting Diabetes into Remission

What Is Prediabetes?

Prediabetes is a serious health condition. Blood sugar levels are higher than normal, but not high enough yet to be diagnosed as type 2 diabetes. 

With prediabetes, action is the best medicine.

American Diabetes Association

What is Diabetes?

About 38 million Americans have diabetes (about 1 in 10), and approximately 90-95% of them have type 2 diabetes. 

Type 2 diabetes most often develops in people over age 45, but more and more children, teens, and young adults are also developing it.

Preventing Type 2 Diabetes

If you have prediabetes, losing a small amount of weight if you're overweight and getting regular physical activity can lower your risk for developing type 2 diabetes.

A small amount of weight loss means around 5% to 7% of your body weight, just 10 to 14 pounds for a 200-pound person.

Regular physical activity means getting at least 150 minutes a week of brisk walking or a similar activity. That's just 30 minutes a day, five days a week.

Tests for Diabetes and Prediabetes

Your doctor will have you take one or more of the following blood tests to confirm the diagnosis:

A1C Test

The A1C test measures your average blood sugar level over the past 3 months. An A1C below 5.7% is normal, between 5.7 and 6.4% indicates prediabetes, and greater than 6.5% indicates diabetes.

Fasting Blood Sugar Test

This test measures your blood sugar after an overnight fast. A fasting blood sugar level of 99 mg/dL or lower is normal; 100 to 125 mg/dL indicates prediabetes and greater than 126 mg/dL indicates diabetes.

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GLP-1 Antagonists - Ozempic, Wegovy, Byetta, Rybelsus

This class of drugs is commonly called glucagon-like peptide 1 (GLP-1) agonists.

These drugs mimic the action of a hormone called glucagon-like peptide 1. When blood sugar levels start to rise after someone eats, these drugs stimulate the body to produce more insulin. The extra insulin helps lower blood sugar levels.

Lower blood sugar levels are helpful for controlling type 2 diabetes. But it's not clear how the GLP-1 drugs lead to weight loss. Doctors do know that GLP-1s appear to help curb hunger. These drugs also slow the movement of food from the stomach into the small intestine.As a result, you may feel full faster and longer, so you eat less.

Along with helping to control blood sugar and boost weight loss, GLP-1s and SGLT-2 inhibitors seem to have other major benefits. Research has found that some drugs in these groups may lower the risk of heart disease, such as heart failure, stroke and kidney disease. Source: The Mayo Clinic

Guest Biography - Lara Al-Dandachi

Lara Al-Dandachi is the Nutrition Director of the PRO (Program to Reduce Obesity) within the Division of Endocrinology at David Geffen School of Medicine and UCLA Health. 

Lara is a Registered Dietitian Nutritionist (RDN), Certified Diabetes Educator, and Obesity specialist who cares for patients in UCLA Health's Gonda Diabetes Center.

She is one of very few Registered Dietitians in the nation who are triple board certified in diabetes care specialty CDCES, advanced diabetes management BC-ADM, and obesity and weight management subspecialty (CSOWM).

Medical Board Certifications

American Association of Diabetes Educators, 2016

National Certification Board for Diabetes Educators, 2015

Blackburn, Obesity Medicine, Harvard Medical School 

Degrees

MPH, Loma Linda School of Allied Health, 2003

BS in Nutrition & Dietetic, American University of Beirut 

About The Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

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An LA Native Tells A Smoggy Story

In late-1970's Los Angeles schoolchildren lived with days of smog alerts and limits on play time because the level of air pollution was unhealthy.

Eye stinging, lung burning, headache-inducing dirty air.

Mr. Sobel's eighth-grade physical education class sat cross-legged on the black-top dressed in the green and gold uniform of their middle school.

Arranged in rows of ten, we were issued VG's (very goods) or demerits according to our behavior. Run a little further than required - get a VG. Pick up a bit of trash blowing across our field - get a VG. Talk out of turn, interrupt the coach, fail to complete the exercises - receive a demerit.

Earn enough in the plus column and receive relief of some sort. Too many demerits and eventually earn a trip to after-school detention.

So why, on this moderately smoggy April afternoon, did Coach Sobel, standing in front of us calling roll, so casually toss his apple core to the base of the tree trunk?

With glee, my classmate raised his hand anxiously anticipating giving the tall, lanky, marathon runner a verbal demerit for littering.

We had only just learned that throwing trash to the ground made its way through the sewer system and eventually to the Santa Monica Bay. 

The beach vision was, of course, an easy inducement and the first step toward life-long behavioral change for the John Burroughs Junior High students, as we all loved summertime at the beach.

Dr. Sobel called on my classmate, who on this day was wearing the gold side of his reversable uniform top.

"Dr. Sobel, you littered!"

The random opening allowed our coach to respond with a dreaded homework task - issued by our P.E. teacher, who was never shy about crossing the line to academic coach.

"Does anybody know what biodegradable means?"

Not a single hand went up, and the journey of a lifetime began for an eighth-grade class of LA natives.

Recycling bins would not appear in Los Angeles until 1983 with the home recycling pilot program.

Gift This Post

Smog Days in LA

It is hard to remember how often we were confined to our classrooms. 

What is clear are the memories of the Hollywood Sign hidden from sight behind a blanket of pollution. 

Most often during the summer months, but with one-half of annual calendar days deemed either hazardous or unhealthy, it could have been any day, in any month, that we were without outside play.

Catalytic Converters and Environmental Policies Work

I can only find yearly data going back to 1980 when the "Total Unhealthy/Hazardous Air Days" numbered 286. For comparison, the 2023 total was 94.

Even more striking 

When comparing "Very Unhealthy or Hazardous Air Days" - 3 - count 'em, three days in 2023 versus 159 heavy smog days in 1980!

Environmental Protection Agency

The EPA was created in 1970 by executive order. President Richard Nixon, cognizant of electoral politics and with love for San Clemente, CA, the home of his western White House, signed the order creating the Agency, leading to a significant expansion of the Clean Air Act (1970) and the Clean Water Act (1972).

Smog - A Photo History

For $150 per day plus film and expenses, photographers, with direct support from the EPA, shot 80,000 images for DOCUMERICA. 

The entire catalog is free for use as part of the National Archives.

Talk The Talk - Earth Day 2024

In an era of politicization of everything, it is heartwarming and hope-inspiring to know that there are people who walk the walk every day of their lives.

17 years ago, I was introduced to Anna Cummins. She arrived at the coffee house via bicycle.

If I recall correctly, the two-wheeler also produced sufficient energy to power a smoothie blender (or other small draw machine) that could be attached to the plank behind the seat.

She had come to discuss my new project, The Sustainable Group, carbon reduction, conservation, and the devasting impact of plastics on our oceans.

Anna's enthusiasm, professionalism, and dedication were already engrained and evident. Her willingness to teach, guide, and make introductions came from the heart.

It is, therefore, not in the least bit surprising what was on her horizon.

The 5 Gyres Institute

Anna and her husband, Markus Eriksen, co-founded and lead the 5 Gyres Institute.

Dedicated to understanding the global impact of plastic pollution and to creating change through education, action, and science.

Spend a few minutes on their website. Review the FAQ, learn about GYREs, and the impact of plastic on human and animal health.

Support and Donate

Hear the story of the JUNK RAFT beginning at 16:04.

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

Yesterday, the National Association of Realtors provided a timeline to approval of the proposed settlement agreement announced on March 15, 2024, to end litigation of claims brought on behalf of home sellers related to industry practices and commissions.

Actual timing, final terms, and liklihood of approval are still in flux, but here’s what we know so far.

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NAR Settlement Update and Timeline

Katie Johnson, Chief Legal Officer, writing on behalf of the NAR via email to members, stated:

We expect that the Court will rule on the motion for preliminary approval soon.

The practice changes set forth in the settlement agreement are slated to take effect in late July of this year, and class notice will take place no earlier than August 17, 2024.

The settlement is subject to final Court approval, and plaintiffs have requested a hearing on final approval of the settlement to be held on November 22, 2024…

Further,

The motion for preliminary approval is the plaintiffs’ position. While we disagree with some of plaintiffs’ statements about NAR and real estate professionals, we agree that the settlement is fair, reasonable, and should be approved by the Court.

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NAR Settlement Timeline and Milestones

NAR Settlement Timeline - 4/20/2024

151KB ∙ PDF file

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KBW Analyst Sees Rough Road for Realtors Group

Following a March 29, 2024 ruling by the U.S. Court of Appeals for the District of Columbia, the Justice Department can reopen an antitrust probe into the National Association of Realtors.

“In particular, we believe it is likely that the DOJ will now look to intervene in the recent NAR nationwide settlement agreement in order to close any loopholes/workarounds, such as off-MLS compensation offers, and ensure more impactful changes to commission policies,” read a note published April 7, 2024.

US DOJ Can Still Exert Influence

“Real-estate commissions in the United States greatly exceed those in any other developed economy, and this decision restores the Antitrust Division’s ability to investigate potentially unlawful conduct by N.A.R. that may be contributing to this problem,” said Assistant Attorney General Jonathan Kanter, the head of the DOJ’s antitrust division, in an emailed statement.

“The Antitrust Division is committed to fighting to lower the cost of buying and selling a home.”

Opinion

It is too soon to presume or expect that the settlement as proposed will receive final approval. Even using the NAR's timeline of a late-April preliminary approval and a late-November 2024 hearing for final approval leaves six months for objections, DOJ influence, and for unknowns to be uncovered and expressed.

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Who is KBW?

Now known as Keefe, Bruyette & Woods - A Stifel Company after the 2013 merger, the firm is probably best known for the KBW Bank Index. The index, formed in 1991, served as a banking sector benchmark and brought name recognition to the highly respected boutique firm.

KBW and 9/11

The firm’s NYC headquarters occupied the 88th and 89th floors of the World Trade Center South Tower. On that infamous day, 67 of 172 New York employees perished.

September 11, 2001, forever changed our country, our industry, and our organization. Today, we pay special tribute to 67 KBW associates who died in the World Trade Center that day and reflect on the incredible legacy they left behind. As KBW CEO Tom Michaud explains, "the story of 9/11 isn't over, the chapters just keep getting turned.

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

Stories and Advice for Aspiring Freelancers

Ann Logue (rhymes with vogue) started her career as a Wall Street financial analyst covering the healthcare sector. She followed a traditional path - undergrad studied economics, earned an MBA in finance, and joined an investment bank. Then, an awakening and a career change.

She is now a full-time freelance writer of six books and hundreds of articles.

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She regularly shares her witty thoughts on The Whatever Years (Substack).

We have known each other for decades and reminisce on the ‘old days,’ including stories of WIRED Magazine, Henry Blodget’s fall from grace and reemergence at Business Insider, and the early days of the internet (Netcom, Netscape, Drugstore.com), and the dot-com bubble.

Her list of ‘must have’ books for every aspiring Wall Street trainee is in the notes below. Hint: Michael Lewis’s Liar’s Poker is at the top.

What is her favorite bookstore? Unabridged Bookstore in Chicago, IL.

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Table Of Contents

00:25 From Wall Street to Author of 6 books

7:30 Day Trading for Dummies

11:30 Visions of Becoming a WIRED staff writer

12:50 Her First Paid Clip - the New York Times

16:15 Liar’s Poker and Other Books to Have on Your Shelf

17:00 Salomon Brothers

20:30 Disruption - Publishing Industry, Real Estate, Wall St

22:30 Freelancing Evolves

26:30 Cost of Education

40:40 Advice on Starting A Freelance Writing Career

44:25 Writing Advice - Practical Tips

53:04 Henry Blodget

1:02:10 Annie’s Favorite Bookstore

1:03 My Netcom (NETC) Story

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Notes:

For the Native Angelino Podcast episode with Annie Logue, recorded on April 11, 2024.

1. Michael Lewis, Liar’s Poker

From Wall Street and author of Liar’s Poker, The Big Short, Moneyball, The Blind Side, The Undoing Project and many more.

For those who don’t know the story of Liar’s Poker, let’s say that the book was (is) required reading for all first-year trainees in finance. Listen to Michael Lewis discuss the book.

“This discrete period of insanity that was coming to and end.”

2. Mandy Hofmockel on Substack

Journalism jobs and a photo of my dog

3. Annie Logue’s List of Books to Have on Your Shelf

Liar’s Poker, The Madness of Crowds, The Art of War

Candlestick Charting for Dummies, Day Trading for Dummies

Berkshire Hathaway Letters to Shareholders

4. My Favorite Ann C. Logue Articles

Henry Blodget and I Lead Parallel Lives

Paying for College: Colleges will be closing and merging

Five Movies About Money

5. Freelance Success Website

6. Technology Articles

1. The Story of UUNet

2. The Last Days of Netcom

3. Follow The Money

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About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges - Pitzer College campus with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Have a challenging transaction? Let's discuss. 

Connect on LinkedIn

I consult on a range of transaction types and deal structures.

"At ten minutes after nine in Atlanta, Georgia, Henry Aaron has eclipsed the mark set by Babe Ruth." Vin Scully, April 8, 1975

Yes, Scully, the legendary broadcaster who accompanied the Dodgers from Brooklyn to Los Angeles, actually used the word 'eclipsed' in his call of the home run. (2:29 min mark - listen to the call below).

Fitting on this 50th anniversary of home run 715 that today, April 8, 2024, will be marked by a total solar eclipse.

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Trivia: What fans don’t know about Hank Aaron and Al Downing

Look closely at the photos from April 8, 1975.

The unknown is not that two towering men who overcame tremendous obstacles to reach the major league faced each other in Los Angeles on this soon-to-be historic night.

The overt racism that each faced during their years in major league baseball is well documented. The angry, ugly phone calls Aaron received in the months prior to breaking the record are also well known.

In fact, Scully makes direct mention of the tone and tenor of the times and the history of racism in professional sports.

The connection that is almost always overlooked: both men played for the Milwaukee Brewers during their careers, and on this night, each wore number 44 - Downing on the mound and Aaron at the plate.

Hank Aaron “Couldn’t Have Been A Nicer Man - Al Downing, Los Angeles Dodgers

The New York Times sub-headline read, "Forever linked to a legend, Al Downing says Aaron, the Hall of Famer who died on Friday, "couldn't have been a nicer man."

Of Hank Aaron's 755 career home runs — a total surpassed only by Barry Bonds — it was the 715th that defined him. It was that home run that pushed Aaron past Babe Ruth as the sport's career leader, and the abuse he took to get to that point became a huge part of his legacy.

Al Downing had the distinction of allowing No. 715 on April 8, 1974. A left-handed starter for the Los Angeles Dodgers, Downing left a 1-0 fastball up and over the plate. Aaron, as he had done so often, pounced on the pitch, driving it into the bullpen in left-center field at Atlanta Stadium. NYTimes January 23, 2021

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What about Vin Scully’s call of the home run? He noted the significance, that “a Black man is getting a standing ovation in the Deep South.” Were you considering that context at the time? Al Downing - NYTimes January 23, 2021

What I heard from Scully was somebody replaying those quips, those sound bites. But he was absolutely right in what he was saying. It was unusual because you weren’t too far past the time when the races couldn’t mix on the athletic field. When I say we weren’t too far past, I’m talking about like ’68, ’69. That’s how recent. So all of a sudden, you looked in ’74 and you have this Black guy here in Atlanta, and you have all these white people in the stands standing up and clapping for him. It was totally unheard-of.

Prior to the start of the 1971 season, the Brewers traded Downing to the Los Angeles Dodgers for Andy Kosco. In his first season in the National League (NL), Downing won twenty games, and pitched a league-leading five shutouts. He earned NL Comeback Player of the Year honors as well as finishing third in NL Cy Young Award balloting behind Ferguson Jenkins and Tom Seaver. ^{Source: Wikipedia}

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Connect on LinkedIn

Have a challenging transaction? Let's discuss. 

I consult on a range of transaction types and deal structures.

Real Estate Agents Brace For Change

Introduction

Since March 15, 2024, the airwaves and digital press have been inundated with articles and opinions attempting to describe and predict the outcome and impact of the proposed Sitzer-Burnett settlement.

A group of home sellers filed the landmark class-action lawsuit in Missouri federal court against NAR and others, including Anywhere, Berkshire Hathaway HomeServices, Keller Williams, and RE/MAX.

The plaintiffs claimed that real estate commission rates are too high, buyers’ representatives are paid too much, and NAR’s guidance and practices lead to inflated commission rates.

The National Association of Realtors (NAR) has unleashed a beast of a marketing and reputation repair campaign.

The damage has been done.

The NAR’s neglect and mismanagement have depreciated public trust in agent value and destroyed the National Association’s reputation.

Real estate agents and brokers will bear the cost and must adapt to survive. Prosperity is possible for the nimble.

The economic benefit available to the consumer, the home buyer and seller is yet to be determined.

Regulatory scrutiny, lawsuits, and settlements accelerate change already in motion.

Innovation and technology, paired with competition and transparency will lead to a more efficient marketplace.

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Table of Contents

1. Real Estate Agents Brace For Change and Pay The Price

2. NAR Regulatory Scrutiny Accelerates Change Already in Motion

   1. Googlization and Anything Can Be Digitized

3. Review Of Proposed NAR Settlement Terms

   1. What We Know and Don’t Know

4. National Association of Realtors (NAR) Media Blitz

5. Residential Real Estate Post Sitzer-Burnett

6. Real Estate Agents Will Pay in Dollars and Reputation

7. How To Prosper In The New Commission Jungle

   1. 12 Topics Every Real Estate Agent Should Evaluate

8. The Future

   1. Do we need a new National Association and Multiple Listing Service

9. Let’s Work Together

10. Appendix - Definitions - Notes

    ---

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NAR Regulatory Scrutiny Accelerates Change Already In Motion

Two years ago, in February 2022, I wrote an article Real Estate Agent Compensation: Are Commission Rates and Fees Too High?

The article began:

At the risk of cutting off my nose to spite my face, the answer to the question, “Are fees too high?” is a foregone conclusion. Agent compensation is coming down. 

Consider it axiomatic that there is no stopping the downward pressure on commission rates and fees.

I expect to feel the ire of real estate agents and brokers directed toward me relentlessly for highlighting the obvious.

Without a doubt, I felt the ire and venom directed toward me by scores of angry real estate agents, brokers, and peripheral players.

Anything That Can Be Digitized, Will Be Digitized - Kara Swisher

Even without Sitzer-Burnett and numerous other lawsuits, it was clear that technology and free or cheap access to information (Googlization) were fundamentally reshaping how residential real estate transactions are to be completed in 2024 and beyond.

It defied logic that with the likes of Zillow, Redfin, Aalto, Opendoor, and literally dozens of digital tools, software platforms, databases, and let us not forget artificial intelligence (AI), the industry was going to avoid a reckoning and rationalization of commission, fees, and employment.

If you don’t agree with me yet, spend 30 minutes with a search engine and ask questions such as:

• How to Buy A Home Without An Agent

• Do I Need An Agent to Sell My Home

• Is Buying A House Without A Realtor A Good Idea

• Can I Negotiate Real Estate Commission

Go down that rabbit hole and then rethink any logic that is based on the status quo.

Reflect on this, and you will likely agree with me that although change is upon us, there remains—and will always remain—a place for value-added services and service providers.

A real estate agent or broker who demonstrates value and justifies a fee, whether flat or commission-based, will be paid, praised, promoted and will succeed.

Review Of Proposed NAR Settlement Terms

What We Think We Know And What We Don’t Know

A brief outline of the main elements of the settlement proposal. NAR targets mid-July 2024 for implementation of changes.

Sitzer-Burnett proposed settlement - March 2024

Final approval of all conditions of the agreement is pending.

Buyer Representation Agreement

Written agreements with buyers will be required before touring a home. Consumers must be fully informed of services offered and their cost.

Compensation to Buyer Brokers

Disclosure of fees and commission as negotiable and may take the form of:

• Fixed-fee commission paid directly by consumers

• Concession from the seller

• A portion of the listing broker’s compensation

MLS Changes

A new rule prohibiting offers of compensation on the MLS.

Consumers may continue to receive cooperative compensation as an option if it is pursued off-MLS through negotiation and consultation with real estate professionals.

U.S. Department of Justice

The Department of Justice (and the Federal Trade Commission) have signaled their interest in real estate commission cases.

Previously, the DOJ raised "significant concerns" with the settlement agreement in a different MLS lawsuit, stating it's not enough just to allow $0 buyer-broker commissions.

Outstanding Lawsuits

A slate of active or potential lawsuits and challenges exist. Much will become clear after the DOJ and FTC state their concerns and conditions and the Court approves or denies the proposed settlement.

A couple to keep an eye on:

Moehrl v. The National Association of Realtors

Wang v. National Association of Realtors et al

National Association Of Realtors Media Blitz

With the announcement of the proposed Sitzer-Burnett settlement, the NAR immediately began an information campaign directed at both the general public and its members.

Emails and videos were distributed to NAR members and an all-out PR campaign was initiated with press outlets.

The NAR continues to deny any wrongdoing and proposes a $418 million payout over four years.

NAR Factsheet

On March 15 of this year, and subsequently updated and moved from URL to URL, the NAR sent members the NAR Settlement Factsheet:

NAR and plaintiffs have reached a proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions.

The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. The settlement is subject to court approval.

Did The NAR Properly Represent and Protect Member Interests?

The NAR Mission Statement

Take four minutes to watch the video highlighted below and consider whether the NAR lived up to its tacit dual mandate of "always working in the best interest of our members…and those that it serves.”

June 2020 Video: What NAR's Mission and Vision Statements Mean for Members

Members want flexible and proactive leaders who anticipate…provide tools before they need it.

Did The NAR Protect The Interests of Home Buyers and Sellers?

Further excerpts from the mission and vision statement and video:

Our vision is to be a trusted ally, guiding our members and those they serve through the ever-evolving real estate landscape.

These duties, which are in the client’s best interest, can be summarized by the acronym OLDCAR: obedience, loyalty, disclosure, confidentiality, accounting, and reasonable care.

Expertise and Committment to The Code of Ethics…that consumers can trust.

Never forget the impact we have on buyers, sellers and all consumers and communities.

Residential Real Estate Post Sitzer-Burnett

Rebuild Reputational Capital

There is no doubt that the NAR has suffered reputational damage. I suspect the damage is permanent, and it is unlikely that the Association will ever garner the influence it once wielded.

The negative impact on public perception of the industry and the harm caused to agents and real estate brokers is perhaps unquantifiable. What is known is that the damage to licensed professionals is massive.

Reputational capital takes much time to build, and requires very little to destroy. For this destruction, the NAR is responsible.

Agents and Brokers must work tirelessly, from the ground up, to restore faith in their chosen profession and to establish a framework to benchmark the value provided in exchange for the fees they will charge and the commissions they will earn.

A Cooperative Environment

Cooperation is not collusion.

Cooperation is the process of working with another person, company, or organization to achieve something.

Collusion is a deceitful agreement or secret cooperation between two or more parties to limit open competition by deceiving, misleading, or defrauding others of their legal right.

Prepare to Share the Real Estate Pot of Gold

Commissions on average will be reduced. The trend is in place and is accelerating.

Plan and reorganize around a new business model that includes full commission services and flat-fee, a la carte offerings.

Establish working relationships with agents and consultants who work on a flat-fee or reduced commission basis.

How To Prosper In The New Commission Jungle

12 topics every real estate agent should evaluate

1. Fiduciary Responsibility

   1. Think and operate as a fiduciary first

      1. Go above and beyond

         1. Fiduciary duties are all the duties that a real estate agent or broker is legally beholden to when working with a client

         2. Fiduciary duties include duty of care, loyalty, good faith, confidentiality, prudence, and disclosure

            1. To serve the best interests of the beneficiary

2. Advocate for Higher Licensing Standards and Greater Oversight

   1. I know of no other profession where so much is at stake ($$$) with such limited oversight

   2. It is too easy to obtain a real estate license

3. Be Proactive - Commissions Are Coming Down

   1. Outline your new business plan and create multiple levels of service offerings

4. Adapt To Change - Don’t Fight It

   1. A quote attributed to Bruce Lee: Be like water making its way through cracks. Do not be assertive, but adjust to the object, and you shall find a way around or through it

      1. Don’t fight the inevitable

5. Know Your Value

   1. Learn to clearly and concisely articulate your value proposition

      1. An elevator pitch as well as a long-form version

6. Know Your Brand

   1. Whatever it is, get comfortable in your own skin

7. Become a Better Negotiator

   1. The negotiating skill you demonstrate during the quest for your new client will directly influence the commission or fee you can charge

   2. Think of it this way: assume I am the prospective client; my attitude is that if you can not convince me to pay you, I certainly do not want you representing me in a negotiation with property and money at stake

8. Buyer Rep Agreements Are A Good Thing

   1. Knowing what you will be paid and setting expectations with your client contractually establishes a professional relationship

      1. Rule of Thumb: People do not appreciate what they get for free

9. Prepare For A Marketplace Of Unrepresented Buyers

   1. The DIY model is in play

10. Develop Relationships With New Referral Sources

    1. Find professionsls willing to work for a flat fee or reduced commission (Zero Hour Group and Native Angelino Real Estate)

11. Constant Learning

    1. Technology moves quickly - keep up

12. Plan to Prosper and to Survive - It’s A Jungle Out There - Think Like A Winner

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The Future

NAR Failed Real Estate Professionals and The General Public

I am a member of the NAR. I often question the value of membership, services received, and whether the lobbying efforts (which I choose not to support financially every year when I pay my dues) are aligned with my interests.

I value access to forms via the California Association of Realtors and my local MLS. Additionally, the historical databases and access to professionals for industry-specific information are of value. 

I do maintain a .realtor website as the SEO juice associated with the franchise is powerful.

Yet, the historical requirement to join the Association and the inability to visualize a direct link between my membership fee and services rendered leaves me to wonder if a better solution should be formulated.

I don't believe home buyers, sellers, investors, or any other party I have worked with care whether or not I am an NAR member. Never have I been asked.

Services to be Unbundled

In my opinion, it is inevitable that real estate services will be unbundled. An "a la carte" menu offering will become standard in the not-too-distant future.

This applies to real estate purchases and sales as well as the routine forms agents use to create and submit offers. Documents will likely be available via monthly subscription, on a per-use basis, or from a third-party source, e.g., an attorney. Thus, the need to join NAR or similar organizations will be further reduced.

Higher Licensing Standards

It is far too easy to become a real estate agent. Barriers to entry are low, while obstacles to success are high. Increasing standards would reduce the number of agents and act to improve performance and public perception.

Independent Contractor Status

An industry heavy on independent contractor relationships, with many brokerages operating pseudo pyramid structures dependent on monthly office or 'desk' fees, does not lend itself easily to a trust-based, fiduciary framework.

The self-regulatory framework needs to be more cohesive and consistent. The need for and benefit derived from a trusted national organization is apparent.

Greater Oversight Is Required

The oversight is minimal. Can you think of another relationship that includes fiduciary elements with such minimal oversight and very low barriers to entry?

Do we need a new National Association and Multiple Listing Service?

Leadership

It's time for change, and perhaps now, a new association built from the ground up, in line with the modern world, will emerge and gain significant market share.

Review and consider joining:

The National Listing Service (NLS)

The American Real Estate Association (AREA)

NAR Settles - Real Estate Agents Will Pay The Bill

A $481 million fine over four years likely paid from member dues.

With unearned dollars and a hit to reputational capital, real estate professionals have and will continue to pay the price for the lapses at NAR.

In this article, we discuss the hard truths, estimate income dynamics, and, importantly, sketch out a plan for success and prosperity in the 'deregulated' or perhaps newly "regulated" environment.

Prosperity is possible. A few will gain market share and experience higher income. The many will struggle to compete, and it is very likely that overall employment and the number of active licensed practitioners will fall rather dramatically.

NAR Leadership Failed to Be Proactive

Googlization, artificial intelligence, and financial market transactions at the speed of light; the signals were everywhere and bright as the shining sun.

I don't know which metaphor is correct: the mighty battleship that is large and changes course very slowly or the happy glutton stuffed and immobile.

In either case, the failings are real, and the bill will be borne by dues-paying real estate agents and brokers. 

Worse than the crimes or misdeeds that may or may not have happened is the failure to anticipate change, protect their members, and skate to where the puck is going.

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Let’s Work Together

Dual-Agency Revisited

A dual agent is a real estate broker, or agents working for the same broker, who act on behalf of both the seller and the buyer in a transaction. A broker is permitted to act as a dual agent in California only if the buyer and seller are both aware of and consent to the dual agency.

The holy-grail in real estate transactions is to act as dual-agent. In industry jargon, to double-end a deal or also known as ‘home cooking’.

Dual-agency by it’s very nature raises questions of conflict of interest. Arms-length transaction tests and the like are necessary to build trust and maintain a fair and orderly market.

Consider Refusing to Act As A Dual-Agent

In this era or realignment, it might make sense for a listing agent to refer business to an outside agent or consultant to avoid any hint of impropriety.

Give up a little to make a lot. Longevity is key.

Appendix

Definitions - Notes

Agent, Broker, Realtor

I use the term agent, broker and realtor interchangeably. In practice there are different licensing requirements for agent and broker. The term realtor is trademarked and available for business use only by those that are members of the National Association of Realtors (NAR).

What Is an Arm's Length Transaction?

Arm's length transactions assert that both parties act in their own self-interest and are not subject to pressure from the other party. They also assure others that there is no collusion between the buyer and seller.

Googlization

Googlized: Googleization (to googleize) is the process of data addition to the Google database; transparency and access to information increase as data acquisition costs approach zero. The term's first use is credited (2003) to John Battelle and Alex Salkever. 

I modify the definition only slightly to add: When private or proprietary information becomes readily available without friction, such information and data sets are "cheap," i.e., inexpensive to acquire.

This phenomenon is almost passe as artificial intelligence and machine learning expand the logic stack of simple, one-dimensional information.

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges with a term at the London School of Economics. Additionally, he holds a CADRE broker's license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

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Have a challenging transaction? Let's discuss. 

I consult on a range of transaction types and deal structures.

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Heavy government debt levels restrain the ability of policymakers to correct problems even in light of obvious trends.

An aging population, a declining population, increasing wealth disparity and education inequality pressure the social security system.

What policy prescriptions are available to ensure the proper functioning and availability of the system for future generations?

He correctly predicts (1:08 min) the interest rate hike by the Japan’s central bank. The first rise in 17 years and a major policy shift.

The social security system is analyzed at the 17:35 mark.

Update Bloomberg, Weekend Reading, March 23, 2024

It was a big week for central banks, replete with surprises, told-you-so’s and new projections about where monetary policy is headed the world over. The Swiss National Bank, citing progress on inflation, became the first among global peers to cut interest rates…

…the Bank of Japan ended its negative interest rate regime, the world’s last. The radical policymaking tool had been adopted to encourage bank lending, spur demand and stem disinflation.

In the US, the Federal Reserve kept rates unchanged at 5.25% to 5.5% as policymakers maintained their projections for three rate cuts this year if inflation continues its retreat. But after a couple of bumps on the path back to 2%, there’s a chance the Fed could drop one of those cuts.

Bio: Professor Yamane is a Professor of Economics at Pitzer College in Claremont, California. He joined the Pitzer faculty in 1988, and is currently on sabbatical (2023-2024).

His research interests include the Japanese Economy, Labor Economics, Econometrics and Macroeconomics. He attended Yale University (MA, MPhil, PhD)and the Massachusetts Institute of Technology (BS).

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Additional Episodes

The Proposed Sitzer-Burnett Settlement

Is Compass just Redfin on Steroids?

The Race Between Education and Technology

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About The Author And Podcast Host Tom Levine

Tom Levine is an LA native and graduate of USC Marshall School of Business, the Claremont Colleges, and spent a term at the London School of Economics.

Following a 25 year career in capital markets, he founded Zero Hour Group in 2014. The Los Angeles, California-based firm provides consulting, strategic analysis, valuation and real estate services. Serving individuals, family offices, institutions and professional investors.

“We solve complex problems. Have a difficult strategic issue, or a real estate sale that requires fresh ideas? Please schedule a a consultation”.

Native Angelino Real Estate, established 2017, for residential, commercial and investment related transactions. Tom Levine is real estate consultant, broker and certified Short Sale and Forclosure specialist under the National Association of Realtors. (CADRE #2052698)

The Native Angelino Podcast is underwritten and produced in conjunction with the Zero Hour Group.

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“From a vantage point within sight of the Hollywood Sign, seated beneath a palm tree, Tom Levine takes you on a twisted, exploratory tour of popular thought, the upside-down theories of classical economics, politics, and other strange things.

Tom talks all things Los Angeles, bright new ideas, and complex topics of interest to creative thinkers and discerning skeptics.

L.A. locals state with pride, "You can surf in the morning and ski in the afternoon."

Well, if you get a really early start, it's true.

Sometimes.

Los Angeles is the City of the Angels, and Tom Levine is a Native Angelino.

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In recent weeks, the real estate community has been inundated with discussions surrounding a proposed Sitzer-Burnett settlement, sparking concerns among agents about the future of their careers.

It's understandable to feel apprehensive amidst such transformative changes, especially when headlines seem to predict a seismic shift in our industry.

However, it's crucial to recognize that with change comes opportunity.

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The adaptation of our practices can not only secure our place in this evolving landscape but can also enhance our service value to clients.

Let's consider three strategic tips to navigate these changes:

1. Embrace Technology and Innovation: Leverage the latest digital tools and platforms to streamline your operations, enhance your marketing strategies, and offer unparalleled convenience to your clients. Staying ahead of technological trends can set you apart in a competitive market.

2. Specialize and Diversify: Identify niche markets or specialize in specific areas of real estate that interest you. Whether it's luxury properties, green homes, or urban developments, specializing can make you the go-to expert in your area and help safeguard your career against broader market changes.

3. Focus on Building Relationships: Despite industry changes, the importance of strong, trust-based relationships with clients remains constant. Prioritize excellent service, transparency, and personal connections. Clients loyal to their agents for their expertise and integrity will always be a stable source of business.

What Changes?

The landscape of real estate is on the cusp of a monumental shift heralded by the proposed Sitzer-Burnett settlement with the National Association of Realtors (NAR).

Here's a closer analysis for the discerning professional:

• Unbundling Services: A pivotal move towards a pay-per-service model, transforming the traditional all-in-one package of real estate services.

• Reduction in Commissions: A significant decrease in the total dollar value of commissions, reflecting the evolving dynamics of the real estate market.

• Decline in Agent Numbers: An anticipated meaningful reduction in the number of active real estate agents and brokers due to increasing market pressures and technological advancements.

• Price Competition Intensifies: An environment ripe for fierce price competition among brokers and agents, especially in securing listings and representing buyers.

• Dual-Front Negotiation for Buyers: Buyers will navigate negotiations on both a gross and a net price for property, adding complexity to the purchasing process.

• Stability in Housing Prices: Contrary to some predictions, significant change in housing prices is not anticipated as a direct consequence of this settlement.

This is Transformational and Inevitable

Don’t fight it.

The implications of the proposed NAR settlement, emerging from possible resolution of the Sitzer-Burnett dispute, are profound.

Notably, it institutionalizes buyer representation agreements, as soon as mid-July 2024 and initiates the separation of compensation offers from the MLS, moving towards a more transparent and negotiable framework off-MLS.

This pivot towards unbundling of real estate services—akin to the diversification seen with the advent of technology and increased data accessibility—heralds a future where consumers can selectively pay for specific services.

This evolution towards granularity in service selection and payment will inevitably lead to a reduction in overall commission rates, echoing the transformation seen in the aftermath of the MayDay 1975 deregulation of stock trading commissions.

Real Estate Agent Commissions Will Fall

The trajectory towards deregulation, heightened competition, and transparency will invariably lead to a decrease in average commission rates. This trend is a testament to the enduring impact of technological advancements and market liberalization on professional practices.

The Number of Agents and Brokers will Fall Meaningfully

Technological innovation, coupled with the ramifications of a possible NAR settlement, is set to accelerate the reduction in real estate employment figures. This forecast is supported by the increasing integration of artificial intelligence and regulatory changes, reshaping the compensation structure for real estate transactions and mortgage financings.

Buyer Representation Agreements

Under the proposed settlement, Buyer Representation Agreements will move toward standardization of the business practices, with buyers directly negotiating their agent's fee, either as a combination of seller contributions and out-of-pocket expenses or fully borne by them. This aligns more closely with practices in commercial real estate transactions and facilitates a more distinct and negotiable compensation model.

Buyer's to Negotiate on Two Fronts

The guidelines will encourage buyers to approach property negotiations with a dual perspective, considering both the gross and net prices. This nuanced approach underscores the evolving dynamics of real estate transactions and the strategic considerations buyers must navigate. There is no denying the impact Google, Zillow and other data services have created by allowing access to cheap, plentiful information.

No Significant Change to Housing Prices as a Result of Sitzer-Burnett

Despite some narratives to the contrary, the proposed settlement is unlikely to result in dramatic shifts in housing prices.

The adjustment of commission structures and the potential redistribution of payment responsibilities between sellers and buyers will foster a more competitive and transparent market without fundamentally altering the pricing landscape of real estate.

In conclusion, the Sitzer-Burnett settlement signifies a watershed moment in real estate, promising a future marked by increased transparency, competition, and consumer choice. As we navigate these changes, it is imperative for professionals within the industry to adapt and innovate, ensuring their practices align with the evolving market dynamics.

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Have a tough transaction? Let’s discuss!

I consult on a range of transaction types and deal structures.

Connect on LinkedIn

About The Author And Podcast Host

Tom Levine, leveraging a 25-year tenure in capital markets, leads Zero Hour Group and Native Angelino Real Estate, offering a suite of consulting, strategic analysis, and real estate services.

An alumnus of USC Marshall School of Business and the Claremont Colleges with a term at the London School of Economics. Additionally, he holds a CADRE brokers license (#02052698) and the designation certified Short Sale Specialist under the National Association of Realtors.

Connect on LinkedIn

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Almost a year ago, New York Community Bank (NYSE: NYCB) acquired Signature Bank's assets as a fresh banking crisis had emerged almost overnight.

The fallout from the failure of Silicon Valley Bank wreaked havoc on financial markets and raised fears of a 2008 scenario.

Over the past week, those fears have again come to life. NYCB issued a dismal earnings report, followed by a set of questionable disclosures. The stock tumbled, and commercial real estate values are again in question.

With more write-offs and loan losses surely to come, why are many of the S&P Real Estate Sector fund components showing signs of life and stock price momentum? We pose this question to our guest, Katie Stockton, of Fairlead Funds.

Fairlead recently added The Real Estate Select Sector SPDR Fund (XLRE) to their portfolio based on proprietary research utilizing technical analysis.

Mortgage rates, which were in the 2-3% range during Covid, have recently retreated from the eight percent level and are bouncing between 6.5 and 7%.

The stock market has reached new highs, unemployment is low, and job creation is strong. What comes next?

What would John Bogle, founder of Vanguard Funds, comment if he were alive today? Would he continue to advocate for long-term investing in low-cost index-related funds? Yes.

What does our guest, Katie Stockton, a Chartered Market Technician, have to say about current market conditions? Let's find out.

Technical analysis is a methodology using charts and trends for forecasting the direction of prices through the study of past market data, primarily price and volume. Additionally, momentum and relative strength.¹

Fundamental analysis, in accounting and finance, is the analysis of a business's financial statements (usually to analyze the business's assets, liabilities and earnings); health; and competitors and markets.²

Guest

Katie Stockton, CMT is Founder and Managing Partner of Fairlead Strategies, LLC, an independent research firm and investment advisor focused on technical analysis. Prior to forming Fairlead Strategies, Katie spent more than 20 years on Wall Street providing technical research and advice to institutional investors. Most recently, she served as Chief Technical Strategist for BTIG and Chief Market Technician at MKM Partners. She also worked for technical strategy teams at Morgan Stanley and Wit Soundview.

CNBC Fast Money, January 24, 2024

With help from the Fairlead Strategies team, Katie provides research and consulting services to institutions and individuals, and she is the portfolio manager for the Fairlead Tactical Sector ETF (TACK). Katie received her Chartered Market Technician (CMT®) designation in 2001, and later served as Vice President of the CMT Association from 2012 to 2016. For several years, she has been honored by The Technical Analyst, a U.K. based publication, including an award in 2022 for Best Cryptocurrency Research.

Katie graduated with honors from the University of Richmond with a BSBA, and she now serves on the business school’s Executive Advisory Council. She is a member of the Endowment Investment Committee for her church. Katie frequently shares her views on CNBC and other financial news networks.

Jack Bogle

CNBC, Cramer, Obit, Jack Bogle was despised and he loved it

Jack Bogle Shares the Investment Lessons of a Lifetime

John Bogle wikipedia

John Bogle remarks to CFA Institute, May 23, 2017

John Bogle advice

About The Author And Podcast Host Tom Levine

Tom Levine is a Native Angelino and graduate of USC Marshall School of Business, the Claremont Colleges, and spent a term at the London School of Economics.

Following a 25 year career in capital markets, Tom Levine founded Zero Hour Group in 2014. The Los Angeles, California-based firm provides consulting, strategic analysis, valuation and real estate services. Serving individuals, family offices, institutions and professional investors.

Native Angelino Real Estate, established 2017, for residential, commercial and investment related transactions. Additionally, he is a broker and certified Short Sale and Forclosure specialist under the National Association of Realtors. (CADRE #2052698)

The Native Angelino Podcast is underwritten and produced in conjunction with the Zero Hour Group, 1929 and Native Angelino Real Estate, and associated real estate assets.

Native Angelino description found on iTunes:

“From a vantage point within sight of the Hollywood Sign, seated beneath a palm tree, Tom Levine takes you on a twisted, exploratory tour of popular thought, the upside-down theories of classical economics, politics, and other strange things.

Tom talks all things Los Angeles, bright new ideas, and complex topics of interest to creative thinkers and discerning skeptics.

L.A. locals state with pride, "You can surf in the morning and ski in the afternoon." Well, if you get a really early start, it's true. Sometimes.

Los Angeles is the City of the Angels, and Tom Levine is a Native Angelino.

Neither the author, nor Native Angelino/1929, is a registered investment, legal or tax advisor or a broker / dealer. All investment/ financial opinions expressed here are from the personal research, experience, and opinions of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate, occasionally unintended errors and misprints may occur. Do your Own Research please. Our content is for informational purposes only.

Let's put the 'early retirement' of NAR CEO Goldberg aside. Let's put the Sitzer/Burnett verdict aside. Further, let's table the various other pending lawsuits for the moment and just focus on the impact of technology on the business of residential real estate.

To argue that artificial intelligence is not simplifying and streamlining numerous aspects of the production process is foolhardy. To argue that greater transparency and streamlining will not lead to the narrowing of spreads or reduction in fees and commissions is to long for the era of the buggy whip. 

It's over. The game is changing, and this change will bring significant disruption, displacement of labor, and lower income to many industry participants as direct and indirect suppliers of services.

Compass is a classic, albeit well-funded roll-up.

"A roll-up (also "roll up") is a process used by investors (commonly private equity firms) where multiple small companies in the same market are acquired and merged.

The principal aim of a roll-up is to reduce costs through economies of scale.  

Roll-ups may also have the effect of rationalizing competition in crowded and fragmented markets, where there are often many small participants but room for only a few to succeed.

The characteristics that can make a roll-up particularly attractive come into play, especially when there are many small players in a fragmented market or in fields where technology can play a role in revitalizing industries with small margins." From Wikipedia (edited).

Compass grew through the acquisition of rivals and by inducing agents to join the firm via the offering of temporarily enhanced compensation packages.

No surprises, as the firm was founded and driven by an engineer with experience at formidable technology companies and by an MBA with a background in politics, consulting, and investment banking. Unsurprisingly, the duo had an understanding of and entre to the world of venture capital.

Why the Comparison to Steroids?

Because they wear off - they stop working.

Steroids, specifically anabolic steroids, are synthetic versions of the hormone testosterone. They are primarily used to promote muscle growth and enhance athletic performance. However, they are often abused for non-medical purposes and risk long-term harm to the body. 

Short-Term Effects:

1. Increased Muscle Mass and Enhanced Athletic Performance

2. Improved Recovery post-workout

3. Increased Red Blood Cell Production, improved oxygen delivery and stamina. 

In the long run, the body (with luck) returns to its normal state without lasting negative consequences. Muscle strength and stamina revert to their original status, and the body moves forward in the then-current state of affairs.

Can steroids be harmful? Yes, anabolic steroids can be harmful. Just as injecting too much venture capital and cheap money into an industry where the talent walks out the door each night can be detrimental to the long-term profitability of a firm and to the health of an industry.

Therefore, this is a long introduction to get to the point: Compass is nothing more than Redfin on Steroids.

Residential Agent Commissions Will Approach Zero

The era of 5%-6% total commission is over. Whether or not most industry participants know it or will admit that massive structural change to compensation is upon us is another story.

I predict that in the not-too-distant future, the vast majority of purchase and sale transactions will be done for total commissions of 3% or less. Somewhere between 5% and 20% of transactions will garner a more substantial fee, but these will be the exception, not the rule.  

If you don't buy off on my argument of structural change, take a peek at Aalto, where it is possible TODAY to buy a home online.

Compass sells on service; Redfin sells on price.

If one reviews the marketing offered by each firm, you will notice this clear as day. At first glance, the homepage for each company is virtually identical. 

Each site leads with "Search" for a home as the entre to the firm's offerings. Submit your zip code, and it is likely that the results returned will be very similar. In fact, I suspect that the MLS data presented will have significant overlap. 

Review this Redfin page and note the marketing slanted toward 'selling on price.' Scroll to the bottom of the page and look at the comparison chart.

Review this Compass page, and note the offering targets 'service.' This is the Compass Concierge service, which appears prominently across the website. 

Interestingly, Redfin offers a similar service called Redfin Concierge Service, but one must dig a bit deeper to find the product.

Sure, the vast Compass network of independent contractors, agents, brokers, and staff are professional and intellectually capable, and the firm garners massive market share. But, the landscape is changing and morphing in ways that will lead to a reversion to the mean whereby, on average, the Redfin transactional experience and the Compass experience will become virtual substitutions for one another.

Technology, Transparency, and AI Win

It’s a foregone conclusion that creative destruction combined with chips and multi-layered matrices and a bevy of Department of Justice and private party lawsuits, enhanced regulation, and transparency will crush the existing compensation structure for generic real estate transactions and mortgage financings. Mark my words.