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The 6% commission on buying or selling a home is gone after Realtors association agrees to seismic settlement (www.cnn.com)

submitted 9 months ago* (last edited 9 months ago) by MicroWave@lemmy.world to c/news@lemmy.world

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The 6% commission, a standard in home purchase transactions, is no more.

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

The NAR, which represents more than 1 million Realtors, also agreed to put in place a set of new rules. One prevents sellers’ brokers from setting buyers’ agents’ compensation, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.

The agreement effectively will destroy the current homebuying and selling business model, in which sellers pay both their broker and a buyer’s broker, which critics say have driven housing prices artificially higher.

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[-] MicroWave@lemmy.world 7 points 9 months ago

Can you elaborate? NY Times and Washington Post are reporting the same:

American homeowners could see a significant drop in the cost of selling their homes after a real estate trade group agreed to a landmark deal that will eliminate a bedrock of the industry, the standard 6 percent sales commission.

https://www.nytimes.com/2024/03/15/realestate/national-association-realtors-commission-settlement.html

The real estate group, which represents 1.5 million real estate agents around the country, said it will pay $418 million over four years to settle several cases, along with agreements to change the rules that plaintiffs alleged supported 5 to 6 percent commissions paid by home sellers. The association said it continues to deny wrongdoing.

https://www.washingtonpost.com/business/2024/03/15/nar-real-estate-commissions-settlement/

[+] helenslunch@feddit.nl -2 points 9 months ago* (last edited 1 month ago)

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[-] MicroWave@lemmy.world 5 points 9 months ago* (last edited 9 months ago)

You may be right it's negotiable, but this lawsuit happened because sellers felt they didn't have a choice:

The NAR had required homesellers to include the compensation for agents when placing a listing on a multiple listing service. Although NAR has long said commissions are negotiable and that the structure helped making housing more affordable for buyers, critics have long argued that the fees were expected and homesellers felt they would lose buyers if they didn’t offer them.

...

Individual sellers often feel powerless to negotiate a better deal for themselves, given the risk that offering lower commissions could cause brokers to steer buyers to other properties, said Robert Braun, a partner in Cohen Milstein’s antitrust practice.

this post was submitted on 15 Mar 2024

210 points (99.1% liked)

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