Insiders Advisor
  • Stocks
  • World News
  • Business
  • Politics
  • Stocks
  • World News
  • Business
  • Politics

Insiders Advisor

Business

Home buyers to be spared broker commissions up to 6% under Realtor group settlement

by March 17, 2024
March 17, 2024
Home buyers to be spared broker commissions up to 6% under Realtor group settlement

The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers’ long-standing commissions, commonly of up to 6% of the purchase price.

Instead, home buyers and sellers would be able to negotiate fees with their agents upfront. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices.

‘For years, anti-competitive rules in the real estate industry have financially harmed millions,’ said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement’s negotiators. ‘This settlement bring sweeping reforms that will help countless American families.’

A sale sign stands outside a home in Wyndmoor, Pa., in June 22, 2022.Matt Rourke / AP file

The NAR acknowledged the pending settlement in a statement Friday and denied any wrongdoing.

‘NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers,’ said Nykia Wright, interim CEO of NAR, whose previous chief stepped down late last year amid fallout from a federal lawsuit.

‘It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,’ Wright said in the statement.

Currently, a home seller is essentially locked into paying a brokerage fee for listing their property on a multiple listing service, or MLS — usually 5% or 6% depending on their geographic area. Upon selling, half of the fee goes to a listing agent representing the seller, while the buyer’s agent gets the other half.

The practice — which has become standard in the real estate industry in recent decades — led to accusations that some buyers’ agents were steering prospects toward more expensive homes. In October, a federal jury found the NAR and some major brokerages liable for colluding to inflate commission fees, ordering the trade group to pay a historic $1.78 billion in damages.

‘It’s a bribe,’ Doug Miller, an attorney and longtime consumer advocate in the real estate industry, said of the commission-splitting arrangements. ‘You’re paying someone to negotiate against you. There’s no good reason for sellers to pay buyer-brokers.’

If the settlement is approved, brokerage commissions would be stripped from MLS sites and opened up to negotiation with sellers, among a series of other changes. Homebuyers, too, would be able to negotiate fees more easily if they choose to sign up with a broker — though experts say the new arrangement may incentivize more buyers to forgo brokers entirely.

The new brokerage-fee changes would begin to take effect within months of the settlement’s approval. A preliminary hearing to approve the deal is slated to take place in the coming weeks.

CORRECTION (March 15, 2024, 2:27 p.m. ET): A previous version of this article misstated when a federal jury found the NAR and some major brokerages liable for colluding to inflate commission fees. It was in October, not November.

This post appeared first on NBC NEWS
previous post
What the National Association of Realtors’ settlement means for consumers and brokers
next post
New report blasts government’s COVID response, warns of repeating same mistakes

Related Posts

The lunch rush is dead as Americans live...

May 20, 2024

Capital One-Discover merger could put a bigger squeeze...

February 21, 2024

Netflix says its ad tier now has 94...

May 15, 2025

How Calvin Klein and Tommy Hilfiger got caught...

February 6, 2025

Federal Reserve fines Walmart-linked Green Dot Corp $44...

July 22, 2024

CVS replaces CEO as profits, share price suffer

October 19, 2024

What the National Association of Realtors’ settlement means...

March 17, 2024

IBM pledges $150 billion to boost U.S. tech...

April 29, 2025

Shein and Temu see U.S. demand plunge as...

June 6, 2025

U.S. Steel sues Biden admin, union boss after...

January 7, 2025

    Fill Out & Get More Relevant News


    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Latest News

    • ‘Game changer’: Bipartisan senators gunning for Russia sanctions ready to give Trump runway

      July 15, 2025
    • Constitutional scholar uses Biden autopen to flip Dems’ ‘democracy’ script against them: ‘Scandal’

      July 15, 2025
    • Senate GOP braces for test vote on Trump’s $9.4B clawback package

      July 15, 2025
    • Anthony Bernal: Who is Jill Biden’s top aide ordered to testify about alleged cover-up?

      July 15, 2025
    • Hegseth abruptly pulls Pentagon officials from ‘globalist’ Aspen conference

      July 15, 2025
    • Mike Waltz faces post-Signalgate ‘brutal’ grilling from Dems in UN ambassador hearing

      July 15, 2025

    Categories

    • Business (1,306)
    • Politics (6,388)
    • Stocks (904)
    • World News (460)
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: insidersadvisor.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 insidersadvisor.com | All Rights Reserved