Jury Awards $1.8 Billion in Landmark Realtor Case, Exposing Commission Conspiracy

A Kansas City jury has awarded $1.8 billion in damages to about 500,000 Missouri home sellers in a case that accused the National Association of Realtors (NAR) and other real estate organizations of conspiring to artificially inflate home sale commissions. The plaintiffs argued that an NAR rule requiring sellers to make a nonnegotiable commission offer before listing homes on the Multiple Listing Service (MLS) stifled competition and resulted in higher prices. Analysts suggest that this verdict, along with a similar case in Illinois, could lead to changes in commission structures, potentially reducing the $100 billion consumers pay in commissions by 30 percent. The NAR plans to appeal the verdict, while investors reacted with drops in Zillow and Redfin shares.