Realtor commission fees consumers pay to buy and sell a house could soon change.
The National Association of Realtors, embroiled in legal battles over the real estate industry’s commission structure, has reached a settlement that could dramatically slash the fees paid to agents.
NAR said Friday that the settlement would lead to it put in place a new Multiple Listing Service rule, which would prohibit offers of broker compensation.
The association’s rules do not set commission rates, NAR said, which are negotiated between consumers and their agents.
However, the real estate industry has long worked under a model of a 5% to 6% commission paid by the seller and split between the seller’s agent and the buyer’s agent.
A federal case in Missouri that challenged that commission structure led to a jury deciding in October that NAR and large brokerage firms conspired to keep costs artificially high. The jury awarded $1.8 billion in damages, which could rise to more than $5 billion under antitrust rules.
What could happen to real estate commissions?
If the class-action case settlement announced Friday is approved, the changes could dramatically lower costs for those looking to sell their home.
The settlement must still get court approval. If it gets the okay, changes would go into effect in mid July, NAR said.
“This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS…
