Real estate commissions
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On Friday morning, March 15, star real estate brokers across the country awoke to the news that the embattled National Association of Realtors (NAR), which represents around 1.5 million agents, had made an industry-altering deal. Not only will NAR settle several lawsuits claiming artificial inflation of commissions to the tune of $418 million, but also it will institute rule changes that may bring soaring real estate prices down while decreasing realtors’ commissions significantly.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible,” NAR interim CEO Nykia Wright said in a press release. “This settlement achieves both of those goals.”
So seismic was the news that some of the country’s biggest brokerages refused to comment to The Hollywood Reporter on the deal. If the new rules are approved by a judge, agents will no longer be allowed to bake the industry standard of 5 to 6 percent commission into their MLS listings. Brokers will also be required to sign a buyer’s broker agreement directly with clients and not be required to sign up for multiple local MLS sites. Currently, a commission for the buyer’s agent is baked into a deal and paid by the seller.
According to USA Today, The…
