Technically negotiable rate had been sold ‘as is’ for decades T he real-estate industry’s 6% agent commissions have been 86’d. By Jason Walsh At least that’s likely to be the result following the March settlement between the National Association of Realtors (NAR) and groups of lawyered-up home sellers from Missouri, who filed anti-trust lawsuits last year alleging NAR and a pair of brokerages conspired to keep agent commissions artificially high. Last November, a federal jury found the defendants liable for $1.8 billion in damages; faced with dim prospects on appeal, NAR settled March 15. As part of its agreement to end the antitrust suits, NAR promised to pay out $418 million in damages and revise its rules regarding agent commissions. With more than 1.5 million members, the National Association of Realtors is among the largest trade associations in the U.S. Under the current NAR model, home sellers have typically paid a 5% to 6% commission—split between the buyer’s and the seller’s agents—on the sale price of the home. On a $1 million home, a seller would likely pay about $60,000 in commissions.
36 NorthBaybiz NorthBaybiz 36
April 2024
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