Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Home buyers to be spared automatic broker commissions under new $418 million settlement
NBC News ^ | Mar 15, 2024 | Rob Wile

Posted on 03/15/2024 11:08:04 AM PDT by where's_the_Outrage?

The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers' longstanding automatic commissions, commonly of up to 6% of the purchase price.

Instead, home buyers and sellers would be able to negotiate fees with their agents up front. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices.

"For years, anti-competitive rules in the real estate industry have financially harmed millions," said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement's negotiators. "This settlement bring sweeping reforms that will help countless American families."

The NAR acknowledged the pending settlement in a statement Friday and denied any wrongdoing.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers," said Nykia Wright, interim CEO of NAR, whose previous chief stepped down late last year amid fallout from a federal lawsuit.

"It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” Wright said in the statement.

(Excerpt) Read more at nbcnews.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: commissions; homeselling; housebrokerage; realestate
Navigation: use the links below to view more comments.
first 1-2021-28 next last
"There's no good reason for sellers to pay buyer-brokers."

Well, if you add a buyer's commissions agents buyer agents will push your home.

1 posted on 03/15/2024 11:08:04 AM PDT by where's_the_Outrage?
[ Post Reply | Private Reply | View Replies]

To: where's_the_Outrage?
Two Questions. Who is getting the money?

The article says "consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices."

If there are less agents there will be less competition. How will less agents result in lower prices?
2 posted on 03/15/2024 11:16:11 AM PDT by PhillyPhreeper
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

Good grief.
Did end users benefit from the AT&T breakup? NO!
This is a lot of nonsense that benefits lawyers and agencies.


3 posted on 03/15/2024 11:18:20 AM PDT by Honest Nigerian
[ Post Reply | Private Reply | To 1 | View Replies]

To: Honest Nigerian

Government agencies. Sorry that i did not make it more clear.


4 posted on 03/15/2024 11:22:47 AM PDT by Honest Nigerian
[ Post Reply | Private Reply | To 3 | View Replies]

To: Honest Nigerian

“Did end users benefit from the AT&T breakup? NO!”

I am guessing you don’t remember the AT&T monopoly ...


5 posted on 03/15/2024 11:24:42 AM PDT by TexasGator
[ Post Reply | Private Reply | To 3 | View Replies]

To: where's_the_Outrage?

Always been a split when I bought /sold property


6 posted on 03/15/2024 11:27:08 AM PDT by ridesthemiles (not giving up on TRUMP---EVER)
[ Post Reply | Private Reply | To 1 | View Replies]

To: ridesthemiles

Split or not, still less money in seller’s pocket.


7 posted on 03/15/2024 11:30:24 AM PDT by TexasGator
[ Post Reply | Private Reply | To 6 | View Replies]

To: where's_the_Outrage?

Sounds like a recipe for Blackrock to own all residential real estate.


8 posted on 03/15/2024 11:31:06 AM PDT by E. Pluribus Unum (The worst thing about censorship is █████ ██ ████ ████████ █ ███████ ████. FJB.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

At $418 million, it sounds like I can sign up for about $50 back on the commissions for the last 4 housing transactions I’ve been involved with.


9 posted on 03/15/2024 11:34:57 AM PDT by alancarp (George Orwell was an optimist.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

we are a very litigious society and the paperwork in a RE transaction can be overwhelming. Some people have successfully sold their homes on their own and more power to them I know investors who do it all the time. but 95% are not experienced enough or able to sludge thru the legal documents.

My wife and i are brokers and we get ill and uninformed clients all the time.

75 years ago the RE contract in CAL was 1 page. now there are dozens of pages and disclosure and title reports and so forth. That’s why we still have work.

We charge 4.5 % and give the buyers agent 2-3% depending on the number of showings and how long it takes.

If we bring the buyer we charge 3.5% We have an obligation to represent both in that case. Yes. it can be done.

Lastly of course commission is negotiable. In a mid or large sized market if an agency told me I must pay 6% I would just walk away and start contacting others.

Be careful with the 1 and 2 % Who is paying the buyer’s agent and what services won’t they do? Some brought about never going to see the house Big mistake.


10 posted on 03/15/2024 11:46:25 AM PDT by coalminersson (since )
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?

Real estate broker fees have always been negotiable where I live. I’ve never chose to negotiate because I remember the biblical parable about ‘not binding the mouth of the ox.’


11 posted on 03/15/2024 11:47:27 AM PDT by DugwayDuke (Most pick the expert who says the things they agree with.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: where's_the_Outrage?
The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers' longstanding automatic commissions, commonly of up to 6% of the purchase price. Instead, home buyers and sellers would be able to negotiate fees with their agents up front.

That has been the law (at least in NJ where I am licensed) for as long as I can remember. Brokerage fees are negotiable between seller or buyer and agency. The agency may stand firm on a certain percentage if it chooses to do so; the buyer or seller seeking representation can go elsewhere if they do not agree.

12 posted on 03/15/2024 11:49:37 AM PDT by JimRed (TERM LIMITS, NOW! Finish the damned WALL! TRUTH is the new HATE SPEECH!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: PhillyPhreeper

I got my notice..
I sold my house in 2018, and an part of the class...
I don’t know how much yet..


13 posted on 03/15/2024 11:53:20 AM PDT by joe fonebone (And the people said NO! The End)
[ Post Reply | Private Reply | To 2 | View Replies]

To: alancarp

That was almost my 1st thought, that it should be 418 Billion, at least.


14 posted on 03/15/2024 11:57:42 AM PDT by where's_the_Outrage? (Drain the Swamp. Build the Wall.)
[ Post Reply | Private Reply | To 9 | View Replies]

To: PhillyPhreeper

The same way that cutting employees in a business saves costs.


15 posted on 03/15/2024 11:58:10 AM PDT by Rockingham (`)
[ Post Reply | Private Reply | To 2 | View Replies]

To: ridesthemiles

I sold my last house using Zillow, no commissions on me.


16 posted on 03/15/2024 11:59:00 AM PDT by where's_the_Outrage? (Drain the Swamp. Build the Wall.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: where's_the_Outrage?

When I sold my house in NY State, the realtor made almost four times what the agent made, and he did all the work. My house was in contract in a week to the first person who looked. For that 6%, the agent should do all the contract work, as is done in Florida.


17 posted on 03/15/2024 12:04:07 PM PDT by Ge0ffrey
[ Post Reply | Private Reply | To 1 | View Replies]

To: Ge0ffrey

CORRECTION
When I sold my house in NY State, the realtor made almost four times what the LAWYER made, and the LAWYER did all the work. My house was in contract in a week to the first person who looked. For that 6%, the agent should do all the contract work, as is done in Florida.


18 posted on 03/15/2024 12:06:15 PM PDT by Ge0ffrey
[ Post Reply | Private Reply | To 17 | View Replies]

To: coalminersson

There was never any reason for them to get a percentage of the sale. A fixed fee or an hourly fee is much fairer.


19 posted on 03/15/2024 12:32:22 PM PDT by Neanderthal ("Knowledge is good" - Emil Faber)
[ Post Reply | Private Reply | To 10 | View Replies]

To: where's_the_Outrage?
I think a 6% commission is not fair to the seller and buyer. The people doing the actual work, like escrow and lawyers deserve that money. Most of the agents I have dealt with don't know much. When my husband and I were much younger, we didn't know about the capital gains law in which you had to own your home for two years, otherwise you would get taxed. We were young homeowners, and didn't know that. We put our condo up for sale 1 1/2 years of owning it, and hired an agent who owned a brokerage firm and ran a real estate school. Our accountant got wind of this, and told us to wait 6 more months before we put the condo on the market. We called the real estate agent ( who knew we only owned the home for 11/2 years ) and she told us she didn't know that, and if she did ,it was not her responsibility to tell us. We took the condo off the market, relisted it again after 6 months with a new agent. I don't find the majority of real estate agents smart at all. They are making too much money doing one or two open houses, and writing an offer. The escrow company does the real work. Its extortion.
20 posted on 03/15/2024 12:42:59 PM PDT by kaila
[ Post Reply | Private Reply | To 1 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-28 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson