Josh Sitzer, plaintiff in commission case, launches à la carte platform

Landian, a flat-fee and à la carte brokerage, offers $49 tours and $199 for written offers to sellers, but the real bombshell may be Sitzer’s involvement so soon after the $5B Sitzer | Burnett verdict.

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Josh Sitzer, whose last name became famous in the real estate industry thanks to his role as a plaintiff in the high-profile Sitzer | Burnett commission lawsuit, has followed up his legal victory by co-launching an à la carte real estate platform.

The project is called Landian, and according to its website it’s “a platform that schedules and coordinates service contracts between homebuyers and licensed real estate agents.” The company lets would-be homebuyers schedule tours and make offers, and includes multiple different pricing tiers.

For consumers paying entirely à la carte, for example, Landian charges $49 per home tour. An offer written by an agent costs $199, but “AI-Powered Offers” are only $99. The company also has an “exclusive agent package” that costs $1,799, paid at closing. The package gives buyers up to five tours and two offers.

Customers using the exclusive package who want more tours or to make more offers are charged the à la carte price for those additional services.

A la carte and flat-fee services are not new to the industry, and indeed have been among the buzziest concepts in real estate over the past few years.

But what may surprise many in the industry is Sitzer’s involvement. Though it’s unclear what specific role he has in Landian, TechCrunch reported on Thursday — the day the company came out of stealth mode — that Sitzer had “teamed up with Bryce Galen and Neal Batra.” According to the TechCrunch profile of Landian, the company is designed to “take advantage of the new landscape.”

That new landscape stems from the National Association of Realtors’ landmark settlement that changed rules regarding agent pay. The settlement resolved several different antitrust lawsuits, one of which was known as Sitzer | Burnett — a name that comes from its lead plaintiffs, including Josh Sitzer.

Inman reached out to Landian Thursday with a request for comment. A company spokesperson offered to send emailed questions to Galen, the CEO. Inman responded with a request for a phone interview and had not heard back by the time of publication. This story will be updated with any comments the company provides.

In any case, though, the company’s website includes an exhortation for consumers to “join the real estate revolution,” followed by a quote from Sitzer.

“After our hard-won settlement paved the way for a new era of fairness and transparency, I’m thrilled to help launch Landian’s revolutionary flat-fee model for home tours and offer submissions, liberating homebuyers from the excessive commissions they were previously forced to pay,” Sitzer says on the website.

The company’s website additionally argues that it can save consumers the “equivalent to a year of mortgage payments.” It also states that “sellers are increasingly declining to pay buyer agent commissions,” but that when sellers do offer buy-side commissions, buyers ultimately still “pay agent commissions through the purchase price, which is higher than what a seller would otherwise accept for the property to receive the same net proceeds after commissions are paid.”

Consumers can schedule a tour or make an offer on a home by pasting a link to a listing from another site, such as Zillow, into Landian’s homepage.

Credit: Landian

In addition to working directly with consumers, Landian also includes an agent signup option. Landian is not a brokerage, and agents who work with the company still have to hang their shingle somewhere else. But the website does promise that agents can “unlock a new era of success” by working with Landian.

Registration for agents is free, but Landian’s website does not say how much money agents will make if they do home tours or write contracts with the company. The website also does not say how many agents have signed up so far, or what kind of lag time consumers might face when connecting with an agent for a tour or to make an offer.

Agents who write Landian offers will conduct “offer prep” sessions with consumers, according to the company’s website, during which they’ll discuss issues such as prices, terms and contingencies.

“After the session, the agent will draft the offer and submit it to the seller (via a listing agent, if applicable) on your behalf,” Landian’s website further explains. The agent will also manage any counteroffers, providing guidance and support until the offer is accepted, rejected, or expires. This service is provided for a flat fee, covering all aspects of the offer process.”

Among the industry changes that resulted from the settlement in Sitzer’s and other cases is a rule that seller’s agents can no longer make offers of compensation to buyers’ agents within their NAR-affiliated multiple listing service. The rule has raised questions about how exactly buyers agents might get paid going forward. One school of thought posits that they will get paid much as they have in the past, with the caveat that agents will simply have to communicate privately to hash out commissions.

However, another school posits that sellers will — like Sitzer himself and other lawsuit plaintiffs — balk at paying buyers agent commissions and refuse to make offers of compensation. That would place the burden of paying for those agents on the buyers themselves. Landian appears to be betting on this outcome, and that buyers will consequently gravitate to lower-cost offerings.

Update: This story was updated after publication with additional details about Landian. 

Email Jim Dalrymple II

NAR to fight DOJ investigation all the way to the Supreme Court

The case dates back to a 2020 settlement between NAR and the DOJ, and to the DOJ’s 2021 attempt to withdraw from that settlement — something NAR is trying to block.

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The National Association of Realtors on Thursday revealed that it plans to take its fight over a Department of Justice investigation to the U.S. Supreme Court.

The trade group mentioned its plan in a court filing, stating that it plans to file a petition for a writ of certiorari — or a request to review a case — to the high court by Oct. 10. The request comes about a month and a half after NAR suffered a setback in the case when an appeals court refused the organization’s request for a rehearing.

The origins of the legal fight go back to 2020, when the DOJ simultaneously announced a lawsuit against and settlement with NAR. The lawsuit focused on several NAR rules that federal officials believed were anticompetitive. The settlement was meant to increase transparency regarding commissions and to prevent claims that buyer broker services are free.

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The matter appeared to be closed at that point, but in July 2021 the DOJ withdrew from the settlement. Days later, the feds quietly resumed their probe and sent NAR a subpoena for information related to its now-defunct Participation Rule — which required listing brokers to offer compensation to buyer brokers in order to submit a listing to a Realtor-affiliated MLS — and on anti-pocket listing Clear Cooperation Policy.

However, NAR has spent the last three years fighting the DOJ’s withdraw from the settlement. In September 2021, NAR asked a court “to quash a request by the Department of Justice that reneges on the terms of a settlement agreement.”

Later, in January 2023, a federal judge sided with NAR and ruled that the DOJ’s resumed probe violated the “validly executed settlement agreement” between the two parties.

The DOJ then appealed. In April of this year, an appeals court sided with the DOJ and ruled that the investigation could resume. NAR responded by asking for a rehearing, but in July the appeals court denied that request — a turn of events that makes the Supreme Court NAR’s next step.

The legal battle between NAR and the DOJ is separate from the numerous consumer-led commission lawsuits that have challenged, and ultimately changed, the way agents do business. Those lawsuits led to a March settlement, as well as rules changes that went into effect on Aug. 17.

However, the DOJ has engaged in talks with attorneys who litigated the commission cases, and earlier this year NAR President Kevin Sears framed the federal agency as potentially more disruptive than the consumer lawsuits. The DOJ has also sent signals regarding what it would like to see happen with agent commissions.

All of which means the case that NAR now plans to take to the Supreme Court is just one component of a larger struggle the organization is having with the DOJ.

Besides revealing the intention to take the case to the Supreme Court, Thursday’s filing additional states that the DOJ has agreed to narrow its request for documents. In response, NAR has agreed to turn over some documents by Sept. 30, and will turn over others if the Supreme Court refuses to review the case or if the court rules in the DOJ’s favor.

Read NAR’s latest filing here (refresh the page if the document doesn’t appear):

Email Jim Dalrymple II

What this summer’s foreign buyer data means for you

The U.S., throughout most of this century, was the top destination for foreign homebuyers from many countries, including China. However, its position has slipped due to the strong dollar and the after-effects of the global pandemic.

For buyers from China, the U.S. today is now the fifth-most-popular destination. We think this ranking could again improve in the years ahead because there remains a strong flow of Chinese to the U.S.

The Migration Policy Institute reports that some 2.4 million Chinese citizens live in the United States. The Institute on International Education says more than 280,000 Chinese students were studying in the U.S. And the NAR report reveals that billions of dollars of Chinese investment money sought a home in the stable U.S. housing market.

What it all means for agents

Understanding these trends is crucial for agents who aim to work with foreign buyers and capitalize on the transaction flow they represent.

One actionable strategy is to target buyers who seek premium properties, such as high-net-worth individuals from China, Canada, Latin America and Europe. Emphasize the unique benefits of U.S. real estate, such as stability and the potential for high returns. Also, learn about the property types that most interest these buyers in your area.

Focusing on key destinations will help you with this strategy. Because foreign buyers are most active in Florida, Texas, California, Arizona and Georgia, tailor your marketing strategies to showcase the lifestyle and investment benefits of these locations. Be ready to provide useful information that will help these buyers hit the ground running when they fly in to visit properties and explore the place that might become their new home.

4 tips for getting past the buyer conversation struggle

The settlement has changed a lot, but consumers still need agents, Amy Corr writes. Stay confident, listen to potential clients, be the advisor they need, and you will thrive.  

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There’s no doubt that the recent changes to broker compensation have shaken up the industry, and it’s natural to wonder how this will play out in your business over the long term, especially if a majority of your clients are buyers.  

Buyers are probably already approaching you with myriad questions based on what they’ve heard and read over the past several months. We have been encouraging our agents to lean into these questions. Use this time as an opportunity to strengthen your value as a trusted advisor with buyers as you continue to build those all-important relationships at your business’s core. 

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Here are some things to consider as you navigate this new environment.   

Don’t fear the conversation

This is new for you, and it’s also new for your clients, so it’s likely that both sides will be a bit apprehensive.

After the overwhelming amount of news on this topic in the past several months — with terms like “price fixing” and “collusion” in the headlines — it’s likely that some of your clients are feeling unsure and perhaps even a little defensive when it comes to navigating their next real estate purchase. It’s your job to stay calm and confident, remembering that one of your primary roles is education.

Let their questions open the door to productive conversations. In some of our markets, the settlement changes went into effect in early July, which let us see how the new laws would play out.

In most cases, sellers understood the new buyer-broker compensation arrangement and were willing to cover those fees as part of the terms of their purchase offer when asked by the buyer. 

Be ready to articulate your value

Hone your pitch so that when a potential buyer questions the cost of your services, you’re able to communicate your value in a way that resonates with them.

To prepare, make a list of the tangible benefits you bring to the table.

  • Do you achieve a lower sales-price-to-list-price ratio for buyers?
  • Does your firm hold top market share in an area?
  • And what does that mean in terms of being able to access off-market listings?

A buyer simply wants to understand how working with you — your experience, your access to pre-market inventory, your strong relationships with other agents in the market — is ultimately going to benefit them. 

Ask yourself these questions to come up with talking points. Remember to keep them concise, boiling the information down to three or four things that are easy to understand. Practice until you feel confident.  

Tell a story

The above points notwithstanding, don’t try to sell yourself by reciting long lists of services you provide or explaining your market position with a laundry list of numbers. That will just confuse your clients.

Instead, tell a story that relates to your clients and help them understand that you have worked with other buyers in situations just like theirs. Perhaps you worked with a buyer who bought a home off-market that they never would have been able to see without you. Or maybe you had a seller who was concerned about a half-point commission difference, but they wound up netting several additional points because you were able to negotiate a great deal.

They want to know that you get it and that you get them. And as an added benefit: The more you tell your story, the more confident you will become.   

Lean on the data

Last year, real estate consultancy 1000Watt surveyed 1,000 consumers who bought a home in the past three years. The survey asked homeowners to consider a possible future in which they’d be required to sign an exclusive agreement with a buyer agent and pay out of pocket for their services.

The response? Seventy-five percent of those surveyed said they would still choose to have an agent represent them, which bodes very well for the future of buyer agency.

I also want to point you to a number of studies of consumer purchasing behavior that, time and time again, show that a large majority of consumers will pay more for a higher-quality experience. Keep these statistics in mind as you work with buyers.

While the settlement has changed a number of things, it has not changed the fact that your clients still need you. Stay confident, listen to potential clients, be the advisor they need, and you will thrive.  

Amy Corr is the chief brokerage officer for @properties Christie’s International Real Estate. Find her on InstagramTwitter and LinkedIn.

A 5-step plan to reduce buyer stress and sell more homes now

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In a market filled with buyer agency changes, compensation questions and fluctuating interest rates, is it any wonder that prospective buyers are stressed out by all the confusion? This article shares a simple, five-step process for reducing buyer stress that will not only lead to more sales now but more referrals in the future as well.

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1. Bring clarity and confidence

When you bring a buyer clarity about the process and confidence that you will get them to the closing table, they move from a place of nervousness to excitement. The pathway to clarity and confidence is achieved through three aspects you can provide using the acronym ACE.

A – Assistance

A buyer’s understanding that you will be with them every step of the way, offering assistance and guidance throughout the process, breeds confidence. You can help them better understand how this assistance will look by sharing details about the resources you have available.

You should discuss your relationships with lenders, title companies, inspection companies, etc. Let them know how you will not only help them find the best service providers but guide them in choosing the highest quality programs and services available through these providers.

C – Communication

The most common complaint about real estate agents is their poor communication skills. This is an opportunity to turn what is normally a negative into a positive.

Give them consistent updates about the process from your first meeting until after closing. Be consistent, concise and thorough in your communication. By telling them upfront what they can expect from you and communicating throughout the process, lifelong client relationships can be built.

E – Experience

Buyers need to know the agent they are working with has experience in helping other buyers. Stats tell but stories sell, so one effective way to build a buyer’s confidence is to share the stories of how you’ve helped others. This is an example of subtly showing your experience through sharing a story:

Just like the two of you, I was working with a couple a few months ago who weren’t sure about the price of the home they could afford. The process we utilized for them — and that I will be suggesting for the two of you — involved me introducing them to a lender that many of my clients have used successfully in the past.

The lender requested all the needed financials from them, and after evaluating their situation, he provided them with the loan options they qualified for. At that point, I worked with them to evaluate the options. We looked at monthly payment options, closing costs and down payment options.

After evaluating their options, they chose the loan program that made the most sense for them. This gave them the confidence, just as it will you, that when they found their perfect home, they were able to write an offer with confidence that they would be approved for the loan and have no surprises throughout the loan process.

When you share stories of your experience, you bring much-needed clarity and confidence to the process (and your value).

2. Remove fears about signing a buyer agreement

Many buyers in this new post-NAR settlement environment are hesitant to sign a long-term buyer’s broker agreement right after meeting an agent. So how do we remove or mitigate these fears?

For this example, let’s imagine a couple coming into town over a weekend to see properties in an area for the first time. Before this trip, they’ve never met the agent who will be showing them properties. This is an example of how that conversation could go to remove these fears:

In case you haven’t heard, in order to see any homes listed in the MLS, a buyer must now sign a buyer agreement prior to seeing the home. I know this is our first meeting, and I would not want to sign a long-term agreement with someone I just met, so I imagine you feel the same way.

So, here’s my suggestion that I think helps both of us decide if we want to commit to working with each other long-term. This buyer’s broker agreement is limited, and it states I will represent you as your buyer’s agent on any homes we might see this weekend.

This way, our agreement to each other only applies to any homes I show you this weekend. If we don’t find the perfect home this weekend, then we can both decide if we want to commit to each other through a more formal, longer-term agreement. How does that sound?

By eliminating their fears, you’ve positioned yourself to build trust and the foundation for a lifelong client.

3. Answer questions before they ask them

Uncertainty leads to stress, and stress often comes from not having a complete grasp of a process or answers to questions you might have. One way to reduce the number of questions your prospective buyers might have is to prepare a frequently asked questions page that you can give them early in the process.

You may be wondering, “But how do I know what the most frequently asked questions prospective buyers have?” This is where ChatGPT can really help. If you’re wanting to prepare this for your prospective buyers, this is a prompt you can use:

Act as an expert real estate copywriter and provide me with a frequently asked questions page with the questions and answers to the 20 most common questions prospective real estate buyers have about buying a home.

This simple step will streamline the process and answer many of the questions your prospective buyers have.

4. Show them, don’t just tell them

Most buyers won’t remember everything you discuss with them. This is where having a buyer brochure or premade buyer folder available can provide the buyer prospects with confidence in your ability to move them from wanting to buy a home to owning a home.

This brochure or folder should have specific items included, such as:

  • A letter from you thanking them for the opportunity to earn their business
  • An outline of your plan of action to find their ideal home, including the use of the MLS, utilizing your network of other agents to identify “coming soon” listings for them before other buyers, and your plan of action to uncover off-market opportunities for them
  • Testimonials from other buyers you’ve worked with in the past

If you’re unsure about what these should look like, do a simple Google search for “real estate buyer brochure examples.” Utilize the examples or templates you find to build a buyer brochure that you will be proud to share with prospective buyers.

5. Tell them their next steps

Confidence comes from knowing what to expect next. Here are a few examples of how you can communicate their next steps and consistently build their confidence in you and the process:

  • Now that we’ve completed our initial meeting, the next step is for me to introduce you to a lender who can help you get pre-approved for a loan.
  • Now that you’ve been preapproved for your loan, and we know the price range of the home you’ll be looking for, let’s discuss neighborhoods that might fit your desires and price range.
  • Now that we’ve identified your target neighborhoods, the next step is for me to send you an email with the homes currently for sale in these neighborhoods so we can choose the homes you’d like to see.
  • Now that we’ve found a home you love, the next step is for me to prepare an offer for you to make on the home.
  • Now that we are under contract, the next steps are for the lender to order an appraisal and for me to order a home inspection.

Focus on the buyer’s pressure points. Be attentive to their fears, and do everything in your power to give them confidence in you and their ability to buy a home. When you do this, transactions will run smoother and opportunities to help buyers will come more frequently.

Jimmy Burgess is the CEO for Berkshire Hathaway HomeServices Beach Properties of Florida in Northwest Florida. Connect with him on Instagram and LinkedIn.

Proptexx gives buyers a fresh look at listings: Tech Review

Find out what tech expert Craig Rowe thinks about Proptexx, an application that allows buyers to instantly remodel a room with AI-based interior design tools.

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Proptexx is an AI listing visualization solution.

Platforms: Browser

Ideal for: Sellers, listing agents

Top selling points:

  • In-browser rendering window
  • Before and after slider UX
  • Intuitive, lightweight setup
  • Multiple downline benefits
  • NAR Reach member

Top concern:

There’s a lot of competition in the virtual rendering and staging space.

What you should know

Proptexx may be new to you, but the company has left footprints in Europe that help it gain traction as it pitches its in-search room design applet.

An interactive pop-up that engages the user to compare the current state of a listing’s interior with a number of virtual makeovers is the core value proposition here.

A slider reveals the new look, which can come from a series of design themes selected from a drop-down menu, and the user can choose to “like” or “dislike” each option. It can work in furnished and unfurnished rooms.

Proptexx requires a single line of API code to be installed, so access to the website’s content management system will be necessary, which should be simple for marketing staff, but I know that a number of brokerages outsource their website administration.

There’s a distinct advantage to Proptexx’s execution, and that it’s not overwhelming the user’s search experience. As I mentioned in the above highlights list, it’s lightweight and unobtrusive.

While it is a feature of the software, I like that it doesn’t push too hard on post-makeover valuations, and the rapid rendering ensures the buyer is aware that it’s merely a potential look for the room. At least for now, it’s not trying to be anything other than a tool for buyers to understand what their new home could look like.

It creates exterior sky renderings, de-clutters, handles landscaping updates, repairs siding and generally tackles most of what you’ve seen its competitors address.

Proptexx serves as a clever way to keep buyers browsing, something everyone knows brokerages need to stay visible amidst the ever-increasing visibility and reach of legacy search portals. It’s best paired with other forms of lead capture and calls-to-action, and in that respect, I’d like to see Proptexx actively keep its users up-to-date with how often the tool is used as an impetus for an agent to reach out.

I asked them about that, and a user stats dashboard is in the works, as is an update that will allow buyers to maintain a history of previous home visits. Look for it later this fall.

Proptexx offers metrics on appraisal complexity and home condition and encourages buyers to search room by room, an emerging trend in home search thanks to the onset of computer vision, a form of AI that reads and processes photo content.

In total, the company has users in 62 countries. And if your website is built/run by BoldTrail or rests on a legacy BoomTown site, it’ll be ready for Proptexx. If you’re an Exit Realty agent, you, too, have access to it (in case you were unaware).

Still, among Proptexx’s toolbox, I’d reach for the staging widget as a differentiator because it’s a buyer tool, a category not being addressed as often as I’d like to see.

I was told the software has processed up to 1.2 million images in a 24-hour period and around 400,000 renderings on average each day. That’s a lot of data. The company isn’t yet capitalizing on that, which it calls “exhaust.”

They’re aware of its value, and I got the sense they’re poking around revenue models for it. But I understand not wanting to move in that direction quite yet, as the app’s value is in its impressively quick rendering and simple user experience and that’s an already crowded field.

Instead of leveraging data for hard sales insights, it could be better used for potential retail partners and service providers.

Its deployment at an open house would be cool, too. Touring buyers could access a tablet iteration to be even more immersed in a room’s potential. It’s also a great option for landlords looking to turn apartments with an “apply now” button and listing agents needing to get a listing agreement signed.

Conceptually, you’ve seen this before, as BoxBrownie and others have been digitally re-rendering rooms and houses and greening lawns for years. Compass Lens offered the single-screen before and after slider years ago — but — what stands out to me is the in-search, consumer-first delivery and packaging, characteristics I think will soon be emulated by the bigger players.

It would be very cool if they found a way to let buyers snap a pic of any room in any house in the app and do it right there, in real-time. In time, I guess.

Until then, Proptexx can still make your website better than it likely is today.

Have a technology product you would like to discuss? Email Craig Rowe

Craig C. Rowe started in commercial real estate at the dawn of the dot-com boom, helping an array of commercial real estate companies fortify their online presence and analyze internal software decisions. He now helps agents and proptechs with technology and partnership decisions and lends his expertise to Inman to review and report on the people and products inciting industry change.