#referral-fees

#referral-fees

The plaintiffs are represented by Hagens Berman, a consumer protection law firm that was also involved in similar litigation against Zillow and the National Association of Realtors. In a press release announcing the action, the law firm said that Rocket including its affiliates Rocket Mortgage, Amrock Holdings and Rocket Homes Real Estate, which were also named as defendants conspired to pressure clients to use Rocket's mortgage company to finance their purchase.

In the filing, Dupuis claims that under the Preferred Agent program, the fee an agent pays to Zillow varies depending on the sales price of the home, with fees running up to 40% of the agent's commission. She claims that this is above the typical referral fee of 25%. According to Dupuis, agents are willing to pay these fees as Zillow leads are an essential source of business for many.

The California Association of Realtors has long championed compensation transparency, especially when it comes to real estate transaction referral fees. C.A.R. has always led the way in demonstrating public trust by supporting full disclosure of referral fee arrangements and advising its members accordingly, she said in a statement. Ensuring that consumers know exactly how their real estate professionals are compensated is central to protecting consumers' interests and reinforcing trust in the transaction process.

Portals, brokers and even trusted voices like Dave Ramsey, take their cut. A closed deal can be worth up to 40% of an agent's commission, or $10,000$12,000 on a $1 million home, just for an introduction. Zillow thrives on free brand traffic, while everyone else pays $2,000$3,000 per customer to compete. That moat is why new ideas never pencil. Why there's no price competition