National Association of Realtors Settlement May Lead To Lower Home Sales Prices
Unsplash | Published: March 16, 2024
What the National Association of Realtors Settlement Means For Home Buyers and Sellers
In a significant development for the real estate industry, the National Association of Realtors (NAR) recently reached a nationwide agreement aimed at transforming the compensation model for real estate agents. This decision comes after NAR faced criticism for its longstanding practice of allowing home sellers to determine the commission paid to buyers' agents through the use of Multiple Listing Services (MLS). This arrangement has resulted in high commission rates, often around 5% to 6%, significantly exceeding those seen in many other nations.Critics and the class action lawsuit prosecutors argued that the common practices up until now presented a possible conflict of interest because the seller decides on the buyer's agent's payment, potentially impacting their ability to negotiate objectively during the sales process, or "steering" sellers to sell to buyers who were will to accept higher commissions - thus, increasing the commission for themselves and resulting in higher home sales prices, driving the already high-demand home market prices up even further.
This recent shift towards greater flexibility in setting commissions follows NAR's loss of a staggering $1.8 billion lawsuit last year, coupled with additional legal challenges targeting the established remuneration framework. These penalties posed such financial strain that NAR risked insolvency. As per the terms of the settlement, NAR will contribute $418 million towards resolving these cases within the upcoming four years without acknowledging responsibility for any wrongful conduct.
Once approved by a federal judge, the revised guidelines for real estate commissions will go live in July. Notably, under the new rules, commissions will become increasingly negotiable, thereby potentially decreasing costs associated with purchasing or selling residential properties while simultaneously increasing competition among real estate professionals vying for clients. However, concerns linger regarding the possibility of reduced earnings driving certain agents out of business due to the enforced modifications.
Homebuyers or sellers seeking redressal for previously incurred expenses linked to this disputable pricing mechanism should consider joining an active class-action suit pertaining to MLS real estate practices. Interested parties must submit their claim via the Real Estate Broker and Agent Commission Fees Open Class Action here before May 9, 2025 to participate in securing potential reimbursements stemming from this landmark case.
How Do I Find Class Action Settlements?
Find all the latest Class Action Settlements you can qualify for by getting notified of new lawsuits as soon as they are open to claims:Filing Class Action Settlement Claims
Please note that your claim form will be rejected if you submit a settlement claim for payout with any fraudulent information. By providing this information and your sworn statement of its veracity, you agree to do so under the penalty of perjury. You would also be harming others that actually qualify for the class action settlement. If you are not sure whether or not you qualify for this class action settlement, visit the class action administrator's website below. OpenClassActions.com is only providing information and is not a class action administrator or a law firm. OpenClassActions is a participant in the Amazon affiliate advertising program and this post may contain affiliate links, which means we may earn a commission or fees if you make a purchase via those links.
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