Real Estate Commission Challenges Spark Lawsuits and Potential Market Shifts

Lawsuits challenging the real estate commission system could have a significant impact on the housing market. A federal jury in Missouri has found that the National Association of Realtors and its members have illegally conspired to fix commission rates on home sales. The jury awarded a $1.8 billion judgment on behalf of half-a-million home sellers in Kansas, Missouri, and Illinois. The lawsuit alleges that the fixed commission rates make homes more expensive for buyers and benefit large firms that dominate the industry. The verdict, if upheld, could lead to changes in the costs of buying and selling homes and overall affordability in the housing market.