Fred Glick, a Broker, Real Estate Realist, and Founder of Arrivva, holds a stellar track record with over $2 billion in residential transactions while grounded in a lifelong passion for real estate. Listen closely as Fred Glick gives you real estate hacks and tips through Arrivva’s AI Podcasters in the weekly We Fixed Real Estate podcast.
Arrivva is a comprehensive real estate and mortgage brokerage, catering to qualified motivated buyers, sellers, and mortgagees committed to brokering with love, integrity, knowledge, a well-defined plan, and a transparent flat fee structure. As featured in the Wall Street Journal, Arrivva leads the way in transforming the future of real estate, one happy client at a time.

Here’s a glimpse of what you’ll learn:
- Get a clear, concise overview of the $418 million settlement and what it means for homeowners
- Discover how this landmark agreement could reshape buyer-broker commissions and promote transparency
- Explore how these changes empower buyers and sellers
- Delve into the potential downsides of the settlement
- Dive into the possible ripple effects on the real estate market and what changes homeowners can expect
In this episode with Fred Glick
Fred Glick of Arrivva takes on the National Association of Realtors (NAR) $418 million settlement in a way that simplifies its impact on the real estate market. With the help of AI guest podcasters, they break down the 67-page NAR settlement and explain how it changes buyer-broker commissions, putting power back into the hands of homebuyers and sellers.
Will these changes transform how commissions are handled, and what does it mean for future transparency in real estate? Whether you’re a first-time buyer, a seasoned seller, or just curious about the future of real estate, tune in to the We Fixed Real Estate podcast for clear insights on how this landmark case could affect you!
Resources mentioned in this episode
EPISODE TRANSCRIPT
[00:00:00] Drew Thomas Hendricks: Welcome to another episode of We Fixed Real Estate. Today, Fred and I are, we’re still delving deep into this NotebookLM. And Fred’s got a, Fred has downloaded or he’s uploaded the entire NAR settlement into this NotebookLM.
And our favorite AI podcast guests are going to dissect it for us. Fred, why don’t you tell us a little more about what’s about to happen here, if you didn’t listen last week.
[00:00:24] Fred Glick: Yeah, I hope you enjoyed it, and we’re working on more. I’m loving this. You don’t need to listen to me, yak.
They really talk in the type of language where you can really understand it. It’s very comprehensive, but it’s very explainable and simple. Props to Sergey Brin, man. I mean, this is his baby was the AI.
He came back and jumped right in on it. And there’s been good and bad, do we all remember Bard is, you know, too soon to hit on his Bard’s ex? I mean, you know, would be the joke. It’s a joke. But then, you know, they got Gemini, we’re using it in Google Meet. Hit one button, it summarizes records, transcribes, it does everything.
So, you know, it’s a nice clean product. Every AI is going gonna do differently. Anyway, I’m way off-topic here. So what I did is I took the settlement from the National Association of Realtors and the plaintiffs and stitch case.
[00:01:24] Drew Thomas Hendricks: The entire 67-page settlement.
[00:01:26] Fred Glick: That’s all I did, you’re gonna hear what’s coming up, so enjoy it and hopefully it’ll answer your questions. I know that’s one little thing. It’s since it’s been down the road a little bit and we’ve seen the consequences of it, that really won’t be in there. So this is really kind of would have been great six weeks ago.
[00:01:44] Drew Thomas Hendricks: To the average listener, if you haven’t heard of the NAR settlement, it’s new to you.
[00:01:50] Fred Glick: Yeah, exactly. So here you go. Enjoy.
[00:01:54] Drew Thomas Hendricks: Enjoy. Let us know your thoughts.
[00:01:56] AI Podcaster 1: Okay, so, let’s dive into something pretty big happening in the real estate world.
[00:02:02] AI Podcaster 2: Sounds good to me.
[00:02:03] AI Podcaster 1: Yeah. We’re going to be talking about a legal case.
[00:02:05] AI Podcaster 2: Okay.
[00:02:06] AI Podcaster 1: A settlement, actually, that could really change things for anyone who’s ever bought or sold a house.
[00:02:11] AI Podcaster 2: Yeah. This is a big one for sure.
[00:02:12] AI Podcaster 1: Yeah. This involves the National Association of Realtors.
Yeah. You know, NAR.
[00:02:17] AI Podcaster 2: Right.
[00:02:17] AI Podcaster 1: And honestly, this whole thing is pretty fascinating.
[00:02:20] AI Podcaster 2: Yeah. It’s a, it’s not your average legal document, that’s for sure.
[00:02:24] AI Podcaster 1: We’ve actually got excerpts from the agreement itself.
[00:02:27] AI Podcaster 2: Oh, wow. And let me tell ya.
[00:02:28] AI Podcaster 1: It’s dense.
[00:02:29] AI Podcaster 2: I bet.
[00:02:29] AI Podcaster 1: But that’s why you’re here.
[00:02:30] AI Podcaster 2: Happy to help break it down.
[00:02:32] AI Podcaster 1: So, for those of us who haven’t been like glued to real estate news lately.
[00:02:36] AI Podcaster 2: Sure.
[00:02:37] AI Podcaster 1: Can you give us the backstory on this lawsuit? What was it all about?
[00:02:40] AI Podcaster 2: Okay, so, imagine this. You’ve got a group of homeowners.
[00:02:44] AI Podcaster 1: Okay.
[00:02:44] AI Podcaster 2: And they are fed up with the lack of transparency.
[00:02:47] AI Podcaster 1: Okay.
[00:02:48] AI Podcaster 2: Around something called buyer-broker commissions.
[00:02:50] AI Podcaster 1: buyer-broker commissions.
[00:02:51] AI Podcaster 2: This is the fee that a buyer’s agent gets for helping their client, you know, buy a house.
[00:02:56] AI Podcaster 1: Right,
[00:02:57] AI Podcaster 2: Usually, it’s a percentage of the sale price.
[00:02:59] AI Podcaster 1: Yeah, like those percentages you always see on listings online, right? Like, buyer’s agent 2. 5%.
[00:03:05] AI Podcaster 2: Exactly.
[00:03:05] AI Podcaster 1: Oh, I was wondering who sets that number anyway.
[00:03:07] AI Podcaster 2: Yeah, that’s a great question. And it’s basically what these homeowners were questioning.
[00:03:12] AI Podcaster 1: Okay.
[00:03:12] AI Podcaster 2: They felt like NAR was kind of creating this system.
[00:03:15] AI Podcaster 1: NAR being the?
[00:03:16] AI Podcaster 2: The National Association of Realtors, which basically sets the rules of the game for how realtors operate.
[00:03:22] AI Podcaster 1: Okay.
[00:03:23] AI Podcaster 2: They felt like NAR created this system where these commissions were artificially inflated.
[00:03:28] AI Podcaster 1: So they’re saying NAR was rigging the system to favor real estate agents.
[00:03:32] AI Podcaster 2: Well, I wouldn’t say rigging, but they were arguing that NAR’s rules made it seem like these buyer-broker commissions were non-negotiable like it was some kind of mandatory fee set in stone.
[00:03:45] AI Podcaster 1: Interesting.
[00:03:46] AI Podcaster 2: And they claimed that this lack of transparency really limited their ability to negotiate better deals when selling their homes.
[00:03:54] AI Podcaster 1: I see. So it’s more about having control and clarity than like accusing anyone of like pocketing extra cash or something.
[00:04:01] AI Podcaster 2: Right. It’s about transparency and control.
[00:04:03] AI Podcaster 1: Right. Okay. So let’s get to the good stuff here.
[00:04:05] AI Podcaster 2: Oh.
[00:04:06] AI Podcaster 1: The settlement itself.
[00:04:07] AI Podcaster 2: All right.
[00:04:07] AI Podcaster 1: Didn’t NAR admit they did anything wrong?
[00:04:10] AI Podcaster 2: So let’s think they didn’t.
[00:04:11] AI Podcaster 1: Really?
[00:04:11] AI Podcaster 2: Yeah. They agreed to settle this lawsuit to avoid, you know, a long drawn out legal battle.
[00:04:17] AI Podcaster 1: Sure makes sense.
[00:04:18] AI Podcaster 2: But they haven’t admitted to any wrongdoing.
[00:04:20] AI Podcaster 1: Companies hate bad press.
[00:04:22] AI Podcaster 2: Yeah.
[00:04:23] AI Podcaster 1: And lengthy legal battles.
[00:04:25] AI Podcaster 2: Right. So what did they agree to? Did they have to pay up?
[00:04:28] AI Podcaster 1: Oh, they paid up. All right.
[00:04:29] AI Podcaster 2: Okay.
[00:04:29] AI Podcaster 1: A whopping $418 million.
[00:04:32] AI Podcaster 2: Wow. Okay, so they put their money where their mouth is.
[00:04:35] AI Podcaster 1: Yeah, that got everyone’s attention.
[00:04:36] AI Podcaster 2: I bet it did $418 million.
[00:04:39] AI Podcaster 1: Big money.
[00:04:39] AI Podcaster 2: So where does that money actually go?
[00:04:42] AI Podcaster 1: So some of it will cover legal fees and, you know, administrative costs, but a good portion is going to be distributed amongst those homeowners who joined the lawsuit.
[00:04:51] AI Podcaster 2: Oh, wow. So potential windfall for those involved in the case.
[00:04:55] AI Podcaster 1: Yeah. Potentially a nice little bonus.
[00:04:57] AI Podcaster 2: But I have a feeling that payout isn’t the real story here, is it?
[00:05:01] AI Podcaster 1: You’re right. The settlement goes way beyond just money.
[00:05:05] AI Podcaster 2: Okay.
[00:05:05] AI Podcaster 1: NAR also agreed to some pretty major changes in how they do business.
[00:05:09] AI Podcaster 2: And these changes could have a ripple effect throughout the entire real estate industry.
[00:05:15] AI Podcaster 1: All right, now we’re talking. Okay, so we’re talking some serious shakeups in the real estate world. All because of this lawsuit against NAR.
[00:05:22] AI Podcaster 2: Yeah, it’s a big one.
[00:05:23] AI Podcaster 1: They agreed to that big payout.
[00:05:25] AI Podcaster 2: Right.
[00:05:25] AI Podcaster 1: But the real story here is how this could change the game for buyers and sellers.
[00:05:30] AI Podcaster 2: Absolutely.
[00:05:31] AI Podcaster 1: So, one of the big changes you mentioned is how buyer-broker commissions are handled.
[00:05:35] AI Podcaster 2: Right.
[00:05:36] AI Podcaster 1: So, are you telling me that those percentages we see on websites like Zillow, Redfin, all those, those might become a thing of the past?
[00:05:44] AI Podcaster 2: They very well could. This settlement aims to make those buyer-broker commissions fully negotiable.
[00:05:50] AI Podcaster 1: Okay, now we’re talking.
[00:05:51] AI Podcaster 2: Put the power back in the hands of buyers and sellers.
[00:05:53] AI Podcaster 1: But how would that work in practice?
[00:05:55] AI Podcaster 2: So let’s say you’re selling your home, right? Instead of that buyer-broker commission being like right there up front.
[00:06:01] AI Podcaster 1: Right.
[00:06:01] AI Podcaster 2: As this like non-negotiable fee. It becomes a point of discussion just like any other term of the sale.
You as the seller have more leeway to negotiate with your listing agent.
[00:06:13] AI Podcaster 1: Okay.
[00:06:14] AI Podcaster 2: Potentially lowering the overall cost of selling your home.
[00:06:17] AI Podcaster 1: That sounds like a win for sellers, but what about for buyers? Yeah. Especially those who are maybe like first time home buyers and trying to navigate this crazy market.
[00:06:28] AI Podcaster 2: That’s a great point. And the settlement actually addresses that.
[00:06:30] AI Podcaster 1: Okay.
[00:06:31] AI Podcaster 2: It ensures that all listings are treated equally.
[00:06:33] AI Podcaster 1: Okay.
[00:06:34] AI Podcaster 2: Regardless of the buyer-broker commission offered.
[00:06:36] AI Podcaster 1: So no more like playing favorites based on who’s offering the biggest piece of the pie.
[00:06:41] AI Podcaster 2: Exactly. No more hiding listings for their clients just because the seller is offering a lower commission.
[00:06:45] AI Podcaster 1: I like it. Transparency is key.
[00:06:47] AI Podcaster 2: 100%. And that focus on transparency goes beyond just like how the listings are presented.
[00:06:52] AI Podcaster 1: Okay.
[00:06:53] AI Podcaster 2: NAR will also require real estate agents to be super upfront about those buyer-broker commissions.
[00:06:58] AI Podcaster 1: So, like, no more burying these fees in the fine print?
[00:07:01] AI Podcaster 2: Exactly.
[00:07:02] AI Podcaster 1: Yeah.
[00:07:02] AI Podcaster 2: It has to be crystal clear what the commission is, how it’s calculated.
[00:07:05] AI Podcaster 1: Gotcha.
[00:07:06] AI Podcaster 2: And both the buyer and the seller have to acknowledge that they understand it’s negotiable.
[00:07:14] AI Podcaster 1: So this all sounds good, you know, in theory.
[00:07:17] AI Podcaster 2: Yeah.
[00:07:18] AI Podcaster 1: But are there any potential downsides here?
[00:07:20] AI Podcaster 2: So some real estate professionals are saying that getting rid of those kind of fixed commissions could make it harder for smaller brokerages to compete.
[00:07:27] AI Podcaster 1: Interesting.
[00:07:28] AI Podcaster 2: With these like bigger firms that can afford to offer lower fees.
[00:07:31] AI Podcaster 1: That makes sense.
[00:07:32] AI Podcaster 2: They also worry that it might be more difficult for first time homebuyers, especially those on a tighter budget, to find an agent who’s willing to represent them.
[00:07:40] AI Podcaster 1: Interesting.
[00:07:41] AI Podcaster 2: Yeah.
[00:07:41] AI Podcaster 1: So transparency is good, but it’s not like a magic solution that’s going to solve everything.
[00:07:47] AI Podcaster 2: Exactly. It’s going to be really interesting to see how this all plays out. We’re in uncharted territory here.
[00:07:51] AI Podcaster 1: Yeah. It sounds like there’s some uncertainty about how this will actually work long-term.
[00:07:55] AI Podcaster 2: For sure. But this settlement has the potential to be a real turning point in real estate.
[00:08:01] AI Podcaster 1: Yeah.
[00:08:02] AI Podcaster 2: Empowering both buyers and sellers with more information and more control.
[00:08:07] AI Podcaster 1: Okay, so we’ve talked about the big picture here, but let’s break it down for our listener, the person at home who’s maybe heard about this case, but they’re not quite sure how it actually impacts them personally.
[00:08:19] AI Podcaster 2: Right, so if you sold a home in the U. S. anytime between 2015 and now, you might be eligible for a piece of that $418 million payout.
[00:08:27] AI Podcaster 1: Yeah, free money is always nice.
[00:08:29] AI Podcaster 2: Right.
[00:08:29] AI Podcaster 1: But what about for someone who’s thinking about buying or selling a home in the near future?
[00:08:34] AI Podcaster 2: Yeah.
[00:08:35] AI Podcaster 1: What’s like the key takeaway here for them?
[00:08:37] AI Podcaster 2: So the big thing to remember is that those buyer-broker commissions, they’re not this mysterious non-negotiable part of the deal anymore.
[00:08:46] AI Podcaster 1: Okay.
[00:08:46] AI Podcaster 2: This settlement really levels the playing field.
[00:08:49] AI Podcaster 1: Okay.
[00:08:50] AI Podcaster 2: It gives both buyers and sellers a much clearer picture of the cost involved and it empowers them to negotiate more favorable terms.
[00:09:00] AI Podcaster 1: It’s like we’re lifting the veil on a practice that’s been kept in the shadows for a long time.
[00:09:04] AI Podcaster 2: Exactly. And it makes you wonder, right?
[00:09:06] AI Podcaster 1: Yeah.
[00:09:06] AI Podcaster 2: If we can do this with buyer-broker commissions, what other aspects of the real estate industry could benefit from this kind of transparency?
[00:09:13] AI Podcaster 1: That’s the million-dollar question right there.
[00:09:15] AI Podcaster 2: Right.
[00:09:16] AI Podcaster 1: And this settlement focuses on residential real estate.
[00:09:20] AI Podcaster 2: Hmm.
[00:09:20] AI Podcaster 1: But could this spark a broader conversation about fairness and transparency across like the entire industry?
[00:09:27] AI Podcaster 2: Absolutely. Including commercial real estate.
[00:09:29] AI Podcaster 1: Now that’s a thought-provoking point.
[00:09:31] AI Podcaster 2: It really is.
[00:09:32] AI Podcaster 1: It’s like a domino effect.
[00:09:33] AI Podcaster 2: Yeah.
[00:09:34] AI Podcaster 1: This settlement could trigger a wave of change in how we buy and sell property in the future.
[00:09:39] AI Podcaster 2: I think so.
[00:09:40] AI Podcaster 1: We’ve covered a lot here today, and I know our listener’s head might be spinning with all these potential changes.
[00:09:46] AI Podcaster 2: I bet.
[00:09:46] AI Podcaster 1: So much to unpack here. We’ve talked about the potential impact of this settlement with NAR, but let’s break it down for our listeners.
[00:09:53] AI Podcaster 2: Yeah, let’s get specific.
[00:09:54] AI Podcaster 1: What are the concrete changes they can actually expect to see like in the real estate world moving forward?
[00:09:59] AI Podcaster 2: So one of the big ones, and this is going to be pretty immediate, is how those buyer-broker commissions are displayed.
[00:10:05] AI Podcaster 1: Okay.
[00:10:05] AI Podcaster 2: Or rather not displayed on all those real estate websites we use. You know, Zillow, Redfin, all those.
[00:10:11] AI Podcaster 1: You mean those percentages you see right next to the listing price?
[00:10:14] AI Podcaster 2: Exactly.
[00:10:15] AI Podcaster 1: The ones that always make me wonder, like, can I negotiate that?
[00:10:17] AI Podcaster 2: Yep. Those are going to be a lot less prominent.
[00:10:19] AI Podcaster 1: Really?
[00:10:20] AI Podcaster 2: NAR is telling all the multiple listing services, the MLS platforms, that they have to remove those upfront offers of compensation to buyer-brokers from their public sites.
[00:10:31] AI Podcaster 1: So no more seeing that 2. 5 percent buyer agent commission plastered right there on the listing?
[00:10:36] AI Podcaster 2: You got it.
[00:10:37] AI Podcaster 1: Wow. That’s kind of a big deal.
[00:10:39] AI Podcaster 2: It is. It reinforces that those fees are negotiable.
[00:10:42] AI Podcaster 1: Okay.
[00:10:43] AI Podcaster 2: And it pushes that conversation offline, you know, into the hands of the buyer, sellers, and their agents.
[00:10:48] AI Podcaster 1: Hmm. I see, I’m starting to see how this could actually like change the whole feel of a real estate transaction.
[00:10:53] AI Podcaster 2: Right.
[00:10:54] AI Podcaster 1: Like more transparency up front should, in theory, lead to more informed decisions. Exactly.
[00:10:59] AI Podcaster 2: It’s not just about what’s visible on those websites, though.
[00:11:03] AI Podcaster 1: Okay.
[00:11:03] AI Podcaster 2: This settlement also says that agents have to be really upfront about those commissions.
[00:11:08] AI Podcaster 1: Okay.
[00:11:08] AI Podcaster 2: Like, disclose them in writing to both sides before anything serious happens, negotiation-wise.
[00:11:13] AI Podcaster 1: So no more hiding those fees in the fine print?
[00:11:16] AI Podcaster 2: Nope. Crystal clear what the commission is, how it’s calculated.
[00:11:19] AI Podcaster 1: Okay.
[00:11:20] AI Podcaster 2: And both the buyer and the seller have to say, yeah, I get it, this is negotiable.
[00:11:24] AI Podcaster 1: Okay, that’s a win for transparency for sure.
[00:11:26] AI Podcaster 2: Absolutely.
[00:11:27] AI Podcaster 1: But now I’m curious about the actual process of like, buying a house.
[00:11:31] AI Podcaster 2: Okay.
[00:11:31] AI Podcaster 1: Will this settlement change anything for the people who are out there touring homes, making offers, all that?
[00:11:36] AI Podcaster 2: Yes. So for buyers, one of the big changes is that before you even step foot in a house, your agent has to tell you in writing how much they stand to make from that sale.
[00:11:48] AI Podcaster 1: So no more surprises down the line.
[00:11:49] AI Podcaster 2: Exactly. That information’s on the table right away.
[00:11:52] AI Podcaster 1: Okay.
[00:11:52] AI Podcaster 2: Buyers know exactly what’s up financially.
[00:11:55] AI Podcaster 1: That makes a lot of sense. And what about for the sellers out there?
[00:11:58] AI Podcaster 2: Yeah.
[00:11:58] AI Podcaster 1: Are there any protections built in for them in all this?
[00:12:01] AI Podcaster 2: Oh, absolutely. The settlement makes it clear that sellers have to sign off on any payments or offers of payment made to a buyer’s agent.
[00:12:09] AI Podcaster 1: So if a listing agent is trying to sweeten the deal to encourage a sale, the seller has to be in the loop.
[00:12:15] AI Podcaster 2: A hundred percent. It’s all about making sure sellers are in control of the money part of the transaction.
[00:12:21] AI Podcaster 1: Wow. This really does feel like a turning point for real estate. You know, from transparency to making sure buyers and sellers have more control, this has the potential to really change how we buy and sell homes.
[00:12:33] AI Podcaster 2: You said it.
[00:12:33] AI Podcaster 1: Yeah.
[00:12:34] AI Podcaster 2: And while it’ll take time to see how it all plays out, one thing’s for sure.
[00:12:38] AI Podcaster 1: Okay.
[00:12:38] AI Podcaster 2: This settlement has people talking about fairness and transparency in real estate.
[00:12:44] AI Podcaster 1: It’s like shining a light on a system that’s been kind of in the shadows for a long time.
[00:12:48] AI Podcaster 2: And that’s huge.
[00:12:49] AI Podcaster 1: Yeah.
[00:12:50] AI Podcaster 2: That willingness to kind of challenge how things have always been done.
[00:12:53] AI Podcaster 1: Yeah.
[00:12:53] AI Podcaster 2: That could have effects way beyond residential real estate.
[00:12:57] AI Podcaster 1: That is a really good point. So for our listener who’s been with us this whole time.
[00:13:00] AI Podcaster 2: Yeah.
[00:13:01] AI Podcaster 1: What’s the big takeaway here? The thing they should remember about this case and this settlement?
[00:13:06] AI Podcaster 2: I’d say this whole thing was about giving the power back to the buyers and sellers.
[00:13:10] AI Podcaster 1: Okay.
[00:13:10] AI Podcaster 2: It’s about making the market a more transparent and fair place, one transaction at a time.
[00:13:16] AI Podcaster 1: Well said. It’s a good reminder that even in something as complex as buying and selling a house, knowledge is power.
[00:13:22] AI Podcaster 2: Right.
[00:13:23] AI Podcaster 1: The more you know, the better off you’ll be.
[00:13:25] AI Podcaster 2: Exactly.
[00:13:26] AI Podcaster 1: Well, this has been incredibly insightful.
Thanks so much for breaking it all down for us.
[00:13:30] AI Podcaster 2: Anytime. Happy to help.
[00:13:32] AI Podcaster 1: And to our listeners out there, stay informed, stay curious, and happy house hunting.