In the United States District Court, Northern District of Illinois, Eastern Division, Janet Wallach has filed a class action lawsuit against Silvercreek Realty Group LLC (Case No. 1:24-cv-3356) on April 25, 2024. The plaintiff alleges that Silvercreek, the largest residential real estate brokerage in Idaho and the eighteenth largest independent brokerage in the U.S., has engaged in anti-competitive measures in the real estate broker services market. The defendant's alleged conduct is said to have artificially inflated commissions paid to real estate brokers and increased home prices and costs for homebuyers nationwide.
The lawsuit details that Silvercreek and its co-conspirators are members of the National Association of Realtors (NAR), a national trade association providing access to primary Multiple Listing Services (MLSs). MLSs are databases that serve as a marketplace for properties listed for sale in a given area. Most residential real estate transactions are facilitated through NAR realtors who list available properties on an MLS.
The complaint further explains how both supply and demand sides of the housing market depend on MLSs. To effectively market and sell a property, a seller-broker must list that property on an MLS because that is where buyer-agents search for properties. Similarly, buyer-agents rely on MLSs to understand the marketplace and determine which homes are listed for sale.
Janet Wallach seeks judgment against Silvercreek Realty Group LLC for engaging in anti-competitive practices that have allegedly resulted in increased home prices and unnecessarily high costs for homebuyers. The plaintiff argues these practices have artificially inflated commissions paid to real estate brokers.