{"id":3371,"date":"2022-08-04T15:52:52","date_gmt":"2022-08-04T15:52:52","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/08\/04\/opinion-we-should-not-be-gloating-about-the-failures-of-competitors\/"},"modified":"2025-03-13T02:44:57","modified_gmt":"2025-03-13T02:44:57","slug":"opinion-we-should-not-be-gloating-about-the-failures-of-competitors","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/08\/04\/opinion-we-should-not-be-gloating-about-the-failures-of-competitors\/","title":{"rendered":"Opinion: We should not be gloating about the failures of competitors"},"content":{"rendered":"\n<p>So, the FTC took &#8220;bold&#8221; action and whacked <strong>Opendoor<\/strong> for <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/ftc-fines-opendoor-62m-for-deceptive-practices\/\" target=\"_blank\" rel=\"noreferrer noopener\">deceptive practices<\/a>. It&#8217;s now an executed consent order, along with a $62 million fine \u2014  a lot of money for sure, but probably not as much as Opendoor would have spent litigating the consent order. <\/p>\n\n\n\n<p>Initially, I did not plan on commenting on the event, because Opendoor is an iBuyer, and I do not really consider them a competitor. However, seeing all the &#8220;Ah, Ha! I told you so!\u201d posts from industry peers, I feel I must respond. <\/p>\n\n\n\n<p>As an industry, we need to stop gloating at the failures of competitors. It makes us all look bad. iBuyers have never reached more than 10% market share nationwide, and in many markets they don\u2019t even exist.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-a-clear-warning-shot\">A clear warning shot<\/h4>\n\n\n\n<p>The big issue here, that is totally being missed, is the fact that this is a clear warning shot across the bow of the entire real estate industry. For two years now, we have been warning as loudly as possible of the coming changes that will result because of the pending <a href=\"https:\/\/preprod.realtrends.com\/blog\/articles\/realogy-tcpa-class-action-suit-headed-to-trial\/\" target=\"_blank\" rel=\"noreferrer noopener\">class-action lawsuits<\/a>, and DOJ\/FTC inquiries because of the executive order issued January 26, 2021. <\/p>\n\n\n\n<p>If you are a real estate practitioner, you would be well advised to spend time researching these issues and focusing on modifying your business to survive the coming changes.<\/p>\n\n\n\n<p>Opendoor presented the low-hanging fruit of offenses, and by jumping on it with this consent order, the FTC is clearly positioning itself to be the public\u2019s hero against those \u201cgreedy\u201d practitioners of real estate. The real estate agent who is driving up home prices, thereby reducing the availability of affordable housing, by charging such \u201chigh\u201d commissions, supposedly. This is true especially as it relates to automatic shared compensation. No where else in the world is there an expectation that a real estate agent should get paid just because they brought a buyer to a transaction. If the client wants representation, the client hires representation.<\/p>\n\n\n\n<p>The class-action lawsuits may or may not work out for the plaintiff(s).\u00a0I am convinced that the DOJ and FTC have been biding time waiting until they can determine directional outcomes before moving forward to modify our industry through outright regulation. Don\u2019t even get me started about the Pandora&#8217;s box this opens regarding liability of the practitioner\u2019s fiduciary responsibilities.<\/p>\n\n\n\n<p>Whether you feel all this is good, bad or are indifferent is irrelevant. If you are a real estate practitioner, you better be paying attention and preparing your business for a different way of doing business.<\/p>\n\n\n\n<p><em>Phillip Cantrell is founder and CEO of Benchmark Realty.<\/em><\/p>\n\n\n\n<p><em>This column does not necessarily reflect the opinion of RealTrends\u2019 editorial department and its owners.<\/em><\/p>\n\n\n\n<p>To contact the author of this story:<br>Phillip Cantrell at <a href=\"mailto:phillip@benchmarkrealtytn.com\">phillip@benchmarkrealtytn.com<\/a><\/p>\n\n\n\n<p>To contact the editor responsible for this story:<br>Tracey Velt at&nbsp;<a href=\"mailto:tracey@hwmedia.com\">tracey@hwmedia.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We should not gloat about the failures of our competitors, such as OpenDoor&#8217;s FTC fine. Instead, we should be preparing for possible changes to the way agents get paid.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[2776],"class_list":["post-3371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Opinion: We should not be gloating about the failures of competitors - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"We should not gloat about the failures of our competitors. 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