All articles tagged with #real estate commissions
Originally Published 3 months ago — by RealEstateNews.com
Law firms Hagens Berman and Cohen Milstein have filed a class-action lawsuit against Zillow, accusing the company of inflating homebuyer costs through its Zillow Flex referral program and engaging in deceptive practices related to listing standards, seeking damages on behalf of U.S. homebuyers over the past four years.
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 KTLA Los Angeles
The National Association of Realtors has agreed to pay $418 million to settle antitrust lawsuits alleging inflated real estate commissions, leading to changes in how homes are bought and sold. Under the settlement, home sellers would pay smaller commissions and buyers would decide how much buyer's agents are paid. The lawsuits challenge NAR's cooperative compensation rule, and if approved, the new rules would affect anyone using a multiple listing service. The settlement could lead to more complex negotiations and changes in how buyer's agents are compensated, potentially impacting buyers and sellers in the real estate market.
Originally Published 1 year ago — by NPR
The National Association of Realtors settled a lawsuit that could change the way real estate agents are paid, potentially doing away with the traditional 5-6% commission. This could lead to more negotiation, competition, and lower costs for buyers and sellers. Sellers may no longer have to spell out a commission for the buyer's agent, and buyers may need to pay their own agent out of pocket. The changes are expected to take effect in July, prompting potential homebuyers and sellers to consider the impact on their decisions.
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 1 year ago — by Fortune
Economists from the Richmond Federal Reserve Bank propose a new "à la carte" compensation model for real estate agents in the U.S. that could potentially slash roughly $30 billion from buyer-agent commissions annually. They argue that the current U.S. model for real estate commissions is "puzzling" and propose a shift to a cost-based commission model to increase homebuyers' welfare. The proposed model would require both homebuyers and sellers to pay their own agents separately and independently of the final home price, aiming to prevent steering and overuse of agent services. Despite potential negative impacts on the real estate industry, the economists believe their proposed model would be beneficial for the economy as a whole.
Originally Published 2 years ago — by Yahoo Finance
A recent $1.8 billion jury verdict against the National Association of Realtors (NAR) and several large brokerage firms could lead to a 30% reduction in the $100 billion Americans pay in real-estate commissions each year, according to an analyst. The lawsuit, along with others like it, may reshape the housing structure and potentially drive more than half of the nation's 1.6 million realtors out of the industry. The court ruling challenges the common practice of setting fees at around 5-6% and could result in negotiated fees and buyers deciding how much to pay a buyer's agent. The long-term implications for the real estate industry include changes to the current system of split commission fees and a potential decrease in demand for buyer agents.
Originally Published 2 years ago — by CNN
The standard 6% commission for real estate agents may be changing as a result of a recent antitrust court case and similar lawsuits. This could allow for negotiation of commission rates and who pays them. The internet has not significantly impacted the 6% commission, which is double the percentage paid in other countries. The National Association of Realtors (NAR) has played a significant role in maintaining the current commission structure. However, there are emerging cracks in the system, and changes are already happening in New York City. The current structure places the burden of commission payment on home sellers, but potential changes could shift this responsibility to buyers or allow for negotiation.
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.