Realtors Group Slashes Commissions, Settles Lawsuits

The New York Times reports:

American homeowners could see a significant drop in the cost of selling their homes after a real estate trade group agreed to a landmark deal that will eliminate a bedrock of the industry, the standard 6 percent sales commission.

The National Association of Realtors, a powerful organization that has set the guidelines for home sales for decades, has agreed to settle a series of lawsuits by paying $418 million in damages and by eliminating its rules on commissions.

Housing experts said the deal, and the expected savings for homeowners, could trigger one of the most significant jolts in the U.S. housing market in 100 years. “This will blow up the market and would force a new business model,” said Norm Miller, a professor emeritus of real estate at the University of San Diego.

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Breaking News: Home sellers in the U.S. would no longer be forced to pay up to 6% commission to agents under a settlement that experts say will drive down prices. https://t.co/Sje336oG8L

— The New York Times (@nytimes) March 15, 2024