Realtor settlement on commission-fixing could create seismic changes in how Americans buy homes | CNN Business
www.cnn.com
The 6% commission, a standard in home purchase transactions, is no more.

The 6% commission, a standard in home purchase transactions, is no more.

In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement with groups of homesellers of landmark antitrust lawsuits by agreeing to pay $418 million in damages and eliminating rules on commissions.

…

In November, a federal jury in Missouri found the NAR and two brokerages liable for $1.8 billion in damages for conspiring to keep agent commissions artificially high. The NAR had pledged to appeal the case, but other brokerages settled — and, eventually, so did the NAR on Friday.

NAR had required homesellers to pay a set 6% commission that is typically split evenly between the seller’s agent and the buyer’s agent. Although the NAR said the commission was negotiable and helped make housing more affordable for buyers, critics have long argued that the fees were effectively set and made housing more expensive.

  • helenslunch@feddit.nl
    0·
    6 months ago

    The 6% commission, a standard in home purchase transactions, is no more.

    It is not and never was…

    This author is a moron.

    • MicroWave@lemmy.worldOPEnglish
      0·
      6 months ago

      Can you elaborate? NY Times and Washington Post are reporting the same:

      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.

      https://www.nytimes.com/2024/03/15/realestate/national-association-realtors-commission-settlement.html

      The real estate group, which represents 1.5 million real estate agents around the country, said it will pay $418 million over four years to settle several cases, along with agreements to change the rules that plaintiffs alleged supported 5 to 6 percent commissions paid by home sellers. The association said it continues to deny wrongdoing.

      https://www.washingtonpost.com/business/2024/03/15/nar-real-estate-commissions-settlement/

      • helenslunch@feddit.nl
        0·
        6 months ago

        I honestly don’t understand. The best understanding that I can come up with is that buyers “felt” like they couldn’t negotiate with their buyers’ agent, even though they totally could.

        It’s also been said that NAR requires sellers to provide some sort of compensation to buyers, but I’ve never seen this officially documented anywhere either.

        What I know with absolute certainty is that I work in the field and I’ve taken <6% on many occasions, and even <1% on the buyer’s side. If I work a buy/sell deal I don’t even ask for 6%, I just write 5% in. And no one gives a shit. My broker doesn’t like it but I’m the one writing the agreements.

        Broker also requires 3% on buyers side but that’s nothing to do with NAR. And the buyer is totally free to negotiate that with their agent upon completing a representation agreement, which is required.

        • MicroWave@lemmy.worldOPEnglish
          0·
          6 months ago

          I think both you and the articles are right. Saw this on Redfin:

          Typically, real estate commission is 5%–6% of the home’s sale price. In most areas, the buyer’s agent receives 2.5%–3% in commission and the seller’s agent receives 2.5%-3% in commission. This can vary by agent and location.

          …

          There are no laws or regulations in the U.S. dictating commission rates, so agents may be willing to negotiate lower rates depending on the type of transaction, the required services, and the relationship.

          https://www.redfin.com/guides/how-much-is-real-estate-agent-commission-buyer-seller

          • helenslunch@feddit.nl
            0·
            6 months ago

            How are we both right when what you quoted says commission is negotiable and the article says NAR requires 6%?

            • MicroWave@lemmy.worldOPEnglish
              0·
              6 months ago

              The CNN article just updated to remove the part about the required 6% and I’ve updated the summary to match.

          • helenslunch@feddit.nl
            0·
            6 months ago

            Thanks for editing your comment

            The NAR had required homesellers to include the compensation for agents when placing a listing on a multiple listing service.

            I’ve already addressed this. This is another lie I’ve heard several times, and no one who has claimed this has ever provided documentation of such policies. I have looked thoroughly myself.

            homesellers felt they would lose buyers if they didn’t offer them.

            That’s because they would. Whose fault is that?

    • Jo Miran@lemmy.ml
      0·
      6 months ago

      I’ve never paid more than 3% on my home sales in Austin. Put simply, the market was too hot. I said “I’m not paying more than 3% total” to which most independent Realtors I interviewed said that.they would not do it because it would impact the showings. So I went to the top Realtor in the city and they agreed. All they did was list it on MLS and on their website. The longest sale took less than a month with the shortest being under contract before it was even listed. They just called one of their clients and it was gone in less than two hours.

      6% for essentially zero effort is bullshit.

      PS: You can list your home for sale on MLS yourself. There are plenty of services that do it for a fixed fee.