Sawbuck Realty's Unique Business Model Protected by DOJ/NAR Settlement

Department of Justice Supports Sawbuck's Pro-Consumer Approach

WASHINGTON, May 27 /PRNewswire-USNewswire/ -- Today's announced settlement between the U.S. Dept. of Justice and the National Association of Realtors ensures that home buyers will continue to benefit from Sawbuck Realty's consumer-friendly approach to home shopping and buying.

Online real estate broker Sawbuck Realty launched earlier this year with an innovative business model that is unique among online real estate brokers. Sawbuck saves home buyers thousands of dollars, while connecting them with the best local buyer's agents. Sawbuck partners with top agents from competing brokers.

Sawbuck's Referral Model Outlawed by Anti-Competitive NAR Policy

Sawbuck's referral model was specifically outlawed by NAR's previous policy -- which prompted an anti-trust suit from the DOJ in September 2005. "We believe in connecting our buyers with the best buyer's agent, no matter who they work for," said Guy Wolcott, Sawbuck's co-founder, "but until the Justice Department got involved, our new model was dead in the water."

Sawbuck Called by DOJ to Testify in Anti-Trust Trial

Shortly after Sawbuck's launch, Wolcott was subpoenaed by the Department of Justice to testify in the anti-trust trial scheduled for July. "DOJ was very interested in how Sawbuck buyers save money while using top local buyer's agents," Wolcott said. "They wanted to show the court how consumers would be hurt if NAR's policy put us out of business."

Settlement to Protect Consumer-Friendly Models like Sawbuck

In today's settlement, NAR agreed to allow new business models like Sawbuck to participate fully in the MLS, right alongside traditional bricks-and-mortar brokers. A referral model is explicitly referenced in the settlement, and Sawbuck's innovative referral-plus-savings model was referenced specifically in today's Justice Department press release. "We know consumers love our combination of big financial benefits and great local agents," said Wolcott. "We're glad the Justice Department went to bat for us, and for consumers."

About Sawbuck Realty

Sawbuck Realty (www.sawbuckrealty.com) is a web-based real estate broker headquartered in Washington, DC. Sawbuck's unique business model: empowers buyers with the best search tools, technology and information; connects buyers with the very best local agents; gives buyers a below-market mortgage with no closing costs; and negotiates the lowest possible settlement costs for buyers. Sawbuck and its network of real estate agent partners currently serve the Maryland, Virginia and Washington, DC markets.

First Call Analyst:
FCMN Contact:

Source: Sawbuck Realty

CONTACT: Stephen Cook of Sawbuck Realty, SteveKCook@aol.com,
+1-202-257-3652

Web Site: http://www.sawbuckrealty.com/

2008-05-27 17:18:09 0371089 PRNEWSWIRE