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My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Trends
regulatory disruption

Real Estate Broker Industry Collapse

Timeframe: 3-5 years for major industry restructuring

What's Changing

National Association of Realtors facing $2B+ in judgments, traditional 6% commission model breaking down

Driving Forces

$2B jury verdict against NAR for price fixing

Potential $40B in additional state-level judgments

Consumer awareness of overpriced broker services

Technology enabling direct transactions

Winners

  • Alternative real estate platforms
  • Discount brokerage services
  • Technology-enabled transaction services
  • Direct buyer-seller platforms

Losers

  • Traditional full-service real estate agents
  • National Association of Realtors
  • MLS-dependent business models
  • High-commission brokerage firms

How to Position Yourself

1

Build technology to replace broker functions

2

Create direct transaction platforms

3

Offer unbundled real estate services

4

Target cost-conscious buyers and sellers

Early Signals to Watch

Additional state lawsuits filedMajor brokerages lowering commission ratesTechnology platforms gaining market shareConsumer behavior shifts toward FSBO

Example Implementation

Launch platform that helps buyers and sellers complete transactions for flat fee instead of percentage-based commission.