All articles tagged with #home sellers
Originally Published 1 year ago — by KVIA
The National Association of Realtors has settled a lawsuit with a group of home sellers, prompting discussions on how this could impact the cost of buying and selling homes in El Paso, Texas.
Originally Published 1 year ago — by The Colorado Sun
The National Association of Realtors settled a lawsuit with Missouri homeowners, leading to changes in real estate agent commissions. Home sellers are still required to pay their agent a commission, but the fee is negotiable. Buyers are not obligated to pay the buyer's agent commission, but covering it could attract more buyers. The settlement also requires written agreements about compensation and prohibits advertising seller-paid commissions. This change may lead to lower costs for sellers and higher costs for buyers, with potential impacts on realtors' earnings. Various discount brokerages offer alternative fee structures, and the industry is adapting to these changes.
Originally Published 1 year ago — by The New York Times
Six home sellers in Missouri, led by Rhonda Burnett, won a landmark class-action case against the National Association of Realtors, resulting in a $1.8 billion settlement and significant changes to the structure of real estate commissions in the United States. The settlement will prevent sellers' agents from offering commissions to buyers' agents on most home sale databases, which experts believe will lead to lower commissions across the industry.
Originally Published 1 year ago — by OCRegister
Home sellers who sold a home in the last four years are entitled to a portion of the $418 million Realtor settlement fund, with individual payouts estimated to be as low as $13 after deducting attorneys' fees. The settlement also includes revisions to commission rules, requiring written agreements between Realtors and buyers, potentially impacting how buyer agents get paid. While some anticipate a significant drop in commission rates, others believe the settlement may not lead to substantial changes in industry practices.
Originally Published 1 year ago — by Tampa Bay Times
The National Association of Realtors has agreed to pay $418 million in damages and overhaul its commission policies, allowing buyers and sellers to pay their own agents starting in mid-July. Sellers are expected to benefit the most, as they won't have to deduct the buyer's agent fee from their sale proceeds. This change could lead to potential drops in home prices and commissions, affecting first-time homebuyers and potentially causing a mass exodus of real estate agents from the industry. The new commission structure may also lead to changes in how real estate transactions are conducted, with some agents adapting to charging flat fees and a potential emergence of a new type of agent focusing on contracts and closings.
Originally Published 1 year ago — by Fortune
The National Association of Realtors has agreed to a $418 million settlement to resolve lawsuits claiming that its rules artificially inflated home seller costs by setting agent commissions. As part of the agreement, the NAR will no longer require upfront compensation to a buyer's agent and will mandate written agreements between agents and homebuyers. These changes could lead to lower agent commissions and increased price competition, but homebuyers may need to negotiate how to cover their agent's compensation. The settlement resolves lawsuits and covers over one million NAR members and affiliated brokerages, with the aim of creating a more competitive real estate market.
Originally Published 1 year ago — by The Denver Post
The National Association of Realtors has reached a landmark legal settlement that disrupts the traditional model of sellers paying for the buyer’s agent in a home purchase, potentially saving home sellers billions of dollars annually. Starting in July, buyers can no longer rely on sellers paying the agents representing them, which could shift typical commission costs back to the buyer. The settlement also prohibits listing buyer agent compensation and requires written agreements detailing compensation and services. This change may lead to a shake-up in the real estate industry, with potential impacts on transaction costs, agent services, and the emergence of new business models.
Originally Published 2 years ago — by CNBC
High mortgage rates have been limiting opportunities for homebuyers and sellers, with many homeowners choosing to stay put. However, recent declines in mortgage rates have led to an increase in mortgage applications and a slight easing of factors that have contributed to homeowners' immobility. While the median monthly mortgage payment has decreased and the number of new listings has increased, Zillow's forecast suggests that any changes in the housing market will be gradual. Prospective buyers hoping for a significant drop in home prices may be disappointed, as slower home price growth is expected over the next five years.
Originally Published 2 years ago — by CBS News
A federal jury's ruling against the National Association of Realtors (NAR) and several large brokerages could lead to reduced real estate agent fees and lower costs for home buyers and sellers. The ruling may result in greater transparency in real estate transactions, as well as potential changes to the payment structure for agents. The Department of Justice is also investigating real estate agent compensation practices, which could trigger a broader overhaul of how agents are paid. However, industry experts caution that the final judgment in the case is still pending, and any changes may not have a significant impact on the industry.
Originally Published 2 years ago — by Honolulu Star-Advertiser
The real estate industry is facing legal challenges that aim to disrupt the long-standing practice of determining agent commissions and who pays for them. In a recent case, a federal jury ordered the National Association of Realtors (NAR) and major real estate brokerages to pay nearly $1.8 billion in damages for artificially inflating commissions. Another class-action lawsuit has been filed seeking nationwide coverage for anyone who sold a home in the last five years. The focus of the lawsuits is an NAR rule that requires home sellers to pay the commission for the agent representing the buyer, in addition to their own listing agent's commission. Plaintiffs argue that this rule keeps commissions artificially high and costs Americans billions of dollars. The NAR defends the practice, stating that it benefits consumers by giving them access to more buyers and professional representation. The outcome of these lawsuits could potentially reshape the real estate industry's commission structure.
Originally Published 2 years ago — by CBS News
The National Association of Realtors and several real estate companies, including Keller Williams and Berkshire Hathaway's HomeService of America, have been ordered to pay $1.8 billion in damages by a federal jury in Missouri for conspiring to inflate brokerage commissions. The verdict could have significant implications for the real estate industry, particularly as the U.S. market is experiencing a slowdown. The case revolves around the commissions paid to buyer's realtors, with plaintiffs alleging collusion to drive up these fees. The lead attorney expects the jury award to be tripled under U.S. antitrust law. Two other brokerages have already settled with the plaintiffs, paying a combined $138.5 million. The defendants plan to appeal the ruling.
Originally Published 2 years ago — by The New York Times
The National Association of Realtors (N.A.R.) and several large brokerages have been ordered by a federal jury to pay damages of nearly $1.8 billion for conspiring to inflate commissions paid to real estate agents. The verdict could lead to a significant shift in the real estate industry, potentially reducing the cost of moving homes by lowering commissions. Under the ruling, home sellers would no longer be required to pay their buyers' agents, and agents would be free to set their own commission rates, potentially cutting them in half or more. The N.A.R. plans to appeal the verdict, but the decision could prompt a reevaluation of agent commissions and diminish the influence of the organization.
Originally Published 2 years ago — by The Washington Post
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.
Originally Published 2 years ago — by New York Post
Mortgage demand has dropped to its lowest level in almost three decades as the average long-term mortgage rate approaches 8%. The average rate on a 30-year home loan climbed to 7.53%, the highest since 2000. The higher rates add significant costs for borrowers, limiting affordability in an already unaffordable market. Homeowners with low rates are discouraged from selling, exacerbating the lack of housing supply. In response, applications for adjustable-rate mortgages have increased. The rise in mortgage rates is tied to the increase in the 10-year Treasury yield, which could keep inflation pressure high and interest rates elevated. As a result, home sellers are slashing prices to attract buyers, with some facing losses in major cities like San Francisco and New York.
Originally Published 2 years ago — by Yahoo Finance
Americans overall are feeling worse about the housing market, with Fannie Mae's index measuring housing sentiment decreasing by 1.2 points to 65.6 in May. However, sellers are feeling better, with the "good time to sell" component increasing in May to its highest level since last July. The contradictory perspectives reflect a market with meager inventory, where buyers continue to outnumber listings and the sellers who remain are getting multiple offers on their properties. Confidence among homebuilders has also improved for the fifth month in a row in May, hitting the highest level in 10 months, due to limited inventory on the resale side.