How the Landmark $418 Million Realtor Settlement is Disrupting the Real Estate Market
Realtor settlement is opening up home buying options for consumers. A powerful real estate trade group agreed to do away with policies that helped set realtor settlement costs. Here’s what this means for home buyers and sellers.
The National Association of Realtors (NAR) recently agreed to a $418 million settlement to resolve lawsuits claiming its rules artificially inflated costs for home sellers. NAR will eliminate rules requiring home listings on MLS platforms to include preset payment offers to buyer’s agents. This significant realtor settlement paves the way for lower negotiated commissions.
Under the old system, sellers’ agents typically split a 5-6% commission with buyer’s agents. But the new rules let sellers negotiate commissions outside MLS. This could motivate agents to lower rates to attract more business. The realtor settlement also mandates buyer-agent agreements in writing, ensuring transparency around fees.
How Will This Impact Home Buyers And Sellers?
Experts anticipate the realtor settlement producing lower commissions over time as buyers gain negotiating power. Sellers may refuse buyer-agent payment requests but still attract unrepresented buyers. And some buyers may opt to skip agents entirely with resources to search independently. Overall, the changes aim to remove barriers driving high commissions.
While change takes time, the realtor settlement opens the door to a more flexible and affordable system for consumers. Home buyers and sellers will have to learn to navigate new commission dynamics. But greater choice and competition could benefit many in the long run as real estate becomes less reliant on preset commission structures.
