Real Estate (REALTOR®) Commission Lawsuit​

A recently announced settlement in a lawsuit against the National Association of Realtors (NAR) could create substantial changes in how real estate commissions are paid. This has big implications for homebuyers, potentially adding costs to the process. Here’s what you need to know and why acting before the changes go into effect is crucial.

The Lawsuit and Proposed Settlement

  • The lawsuit against NAR claimed that their rules requiring sellers to pay buyer’s agent commissions were unfair and inflated costs for consumers.
  • The settlement will change this practice.
  • Come July 2024 , homebuyers could be directly responsible for paying their buyer’s agent commission.

Why This NAR Lawsuit Matters to Homebuyers

  • Increased Costs: If you’re planning to buy a home, this change could mean thousands of dollars out of your pocket on top of the purchase price.
  • Impact on Negotiation: This shift could change negotiating dynamics during a home purchase, potentially requiring you to factor buyer’s agent commissions into your offers.
  • Importance of Professional Representation: While you might be able to navigate the process alone, working with an experienced agent is more important than ever. A qualified realtor can guide you through the transaction and potentially help save you money, even with the added commission structure.

Why Homebuyers and Sellers Should Act NOW

  • Current Market: As of today, many sellers are still offering to cover buyer’s agent commissions in the MLS.
  • Take Advantage: Buying a home before the settlement changes go into effect means you likely won’t have to pay your buyer agent’s commission out of pocket.
  • Beat the Rush: As news of this spreads, more buyers might rush to close before the deadline, increasing competition.

We’re Here to Help you navigate these new lawsuit changes!

The Jason Giomboni Team  understands these changes can be confusing. We’re committed to keeping our clients informed and guiding you through a successful home purchase, no matter the commission landscape.

Free Buyer Consultations:
 We’ll walk you through the entire home buying process, discuss the settlement changes, and get you preapproved.

Have Questions About The National Association of REALTORS ® Lawsuit?

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What Is The Class Action Lawsuit REALTORS ® EXPLAINED

The National Association of Realtors (NAR) has agreed to a settlement that could bring significant changes to how real estate commissions are paid in the United States. This article outlines the lawsuit’s background, the settlement’s terms, and the potential impact on home buyers and sellers.

The Lawsuit

  • A series of lawsuits accused NAR of violating antitrust law by requiring sellers to pay commissions to both the listing agent and the buyer’s agent.
  • Plaintiffs argued that these rules inflated costs for home sellers and limited competition within the real estate industry.

The Settlement Agreement

  • NAR will pay $418 million to settle the litigation.
  • The settlement receives court approval.
  • Key changes under the agreement include:
    • MLS Listings: Real estate agents will no longer include buyer’s agent commission offers on Multiple Listing Services (MLS). However, these commissions can still be negotiated directly between agents and clients.
    • Written Buyer Brokerage Agreements: Agents working with buyers must now have written agreements outlining their fees and services.
  • These changes are expected to go into effect in mid-July 2024.

NAR’s Position

  • NAR has consistently denied any wrongdoing, maintaining that the buyer’s agent commission structure benefits consumers.
  • The settlement agreement protects most NAR members and associated MLSs from liability in these lawsuits.
  • NAR leadership states their priority was to minimize the impact on members and allow the industry to move forward.

Implications for Homebuyers and Sellers

  • Potential Cost Changes The impact of this settlement on overall home sale transaction costs is uncertain.
  • Negotiation: Homebuyers may need to factor in the cost of their buyer’s agent more directly during negotiations.
  • Professional Representation: NAR maintains that buyer’s agents offer valuable services, and encourages buyers to negotiate fees while still leveraging professional representation.

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