Realtor settlement on commission-fixing could create seismic changes in how Americans buy homes

[essentialsaltes]

In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement of landmark antitrust lawsuits by agreeing to pay $418 million in damages and eliminating rules on commissions.

In November, a federal jury in Missouri found the NAR and two brokerages liable for $1.8 billion in damages for conspiring to keep agent commissions artificially high. The NAR had pledged to appeal the case, but other brokerages settled.

This settlement opens the door to a more competitive housing market. Realtors could now compete on commissions, allowing for prospective buyers to shop around on rates before they commit to buying a home.

 

[RestoreTheJoy]

In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement of landmark antitrust lawsuits by agreeing to pay $418 million in damages and eliminating rules on commissions.

In November, a federal jury in Missouri found the NAR and two brokerages liable for $1.8 billion in damages for conspiring to keep agent commissions artificially high. The NAR had pledged to appeal the case, but other brokerages settled.

This settlement opens the door to a more competitive housing market. Realtors could now compete on commissions, allowing for prospective buyers to shop around on rates before they commit to buying a home.

Many years ago, by way of my professional license, I decided to pick up a Realtor's license for a time as well. I was surprised even then at the essential price-fixing on commissions, in my higher-price-than-usual state.
So,not shocked. Even since then I have used flat-fee brokers with great ease and while paying half the commission plus a fee up front. Saved me tens of thousands.