The National Association of Realtors (NAR) has reached a landmark $418 million settlement, marking a significant shift in the residential real estate industry. This development comes after years of investigation by the Department of Justice's (DOJ) antitrust division, highlighting the government's ongoing efforts to foster competition in the real estate market. The settlement, summarized in a document of 25 pages or less, outlines 10 significant changes to the industry, identifying winners and losers in the process. It is poised to dismantle the longstanding commission monopoly held by NAR, potentially saving homeowners thousands of dollars in fees and reshaping the future landscape of real estate transactions. Critics of the current system argue that it has long favored a cartel-like structure that imposes excessive burdens on consumers, with some estimating that breaking this cartel could yield up to $100 billion in benefits over time. The settlement also includes provisions that will alter how agents set their commissions, specifically forbidding the setting of commissions via the Multiple Listing Service and prohibiting the publication of buyer-agent compensation on these platforms. This change is expected to prompt a reevaluation of the value of real estate agents' services, as the industry moves towards greater transparency and competition.
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"In the United States, nothing has been certain except death, taxes and the 6 percent real estate agent commission," the Editorial Board writes. "But after a legal settlement this month, the list might be down to two again." https://t.co/o1H90XcMDi https://t.co/FTYALEn9xx
This is a HUGE win! The process of buying & selling houses in the US is probably as egregious an example of special interest politics putting huge burdens on consumers as anything we have Breaking the Realtor cartel could have $100B in benefits over time https://t.co/A5UL5SqPy4
This is a HUGE win! The process of buying & selling housing in the US is probably as egregious an example of special interest politics putting huge burdens on consumers as anything we have Breaking the Realtor cartel could have $100B in benefits over time…
This is a HUGE win! The process of buying & selling a home in the US is probably as egregious an example of special interest politics putting huge burdens on consumers as anything we have Breaking the Realtor cartel could have $100B in benefits over time https://t.co/A5UL5SqPy4
Settlement notices related to multiple lawsuits against the National Association of Realtors and several major brokerages are legitimate. Here’s how to file a claim. https://t.co/Z052JpRtGb
The settlement forbids agents from setting their commissions via the Multiple Listing Service. https://t.co/9LkihgE7V6 via @reviewjournal
Nick Narodny, CEO of real estate marketplace Aalto—which is backed by Sequoia Capital—shares his take on where he thinks the industry goes next following the NAR proposed settlement 👇 https://t.co/chkkYsz6Ny https://t.co/ntM7kskD6F
"Americans will have to ask themselves something they should have asked decades ago: How much is a real estate agent worth to you?" The latest from @asymmetricinfo: https://t.co/fsPaLb62AQ
It’s not at all clear that a settlement agreed between agents and homeowners will bring about a Utopia of greater competition and lower commissions. The stakes are too high to accept a deal that protects brokers from future lawsuits https://t.co/lcHQLNTp2k 👇
"I don’t want to pay a buyer’s agent"—homeowners are charged up after $418 million settlement, top real estate CEO says. https://t.co/YbR3ADpaka
These home sellers don’t want to pay 6% commissions — so they’re pushing back @aarthiswami https://t.co/CAodoNeOrJ
Ending 6% commissions would mean ‘dangerous times’ for home buyers, mortgage lender says @aarthiswami https://t.co/XpGLJuvV0N
A couple of days ago, I got in touch with a homeowner in upstate NY who was processing all the Realtor news. Since he's sold homes many times before - he was going to do things differently w.r.t. commissions. No 6%, he decided. Here's the story. https://t.co/jwG7Rh7DO8
Ending 6% commissions would mean ‘dangerous times’ for home buyers, mortgage lender says https://t.co/K1rXSeCtKi
America’s realtor racket is alive and kicking One of the settlement's main provisions "is that offers of buyer-agent compensation can no longer be published on a multiple-listing service, the databases used in the industry. But they can still be made, and can be published on…
Recent changes will have Americans having to ask themselves something they should have asked decades ago, Megan McArdle writes: How much is a real estate agent worth to you? https://t.co/lTEvjnaSwE https://t.co/qBp8USOyy4
Opinion by: The value of real estate brokerage services has been dropping for more than a century. Only the price has remained high. https://t.co/v4L32oHFsj
It remains to be seen how the Realtor commission settlement could impact veterans who are prohibited from paying fees or commissions charged by a real estate agent under VA loan rules. https://t.co/EYlz145BoI
For decades, the DOJ pushed for more competition in the real estate market — now the agency might be getting its way. https://t.co/jflss7IDUR
The fact that NAR losing a lawsuit can impact the contractual relationships residential realtors nationwide must have with their clients proves how broken the entire residential system is. Those of us in the commercial real estate space can complain about CoStar all day long,…
Yahoo Finance's @RebeccaChenP provides tips for new home buyers: https://t.co/oktzHWCsEh
We’ll soon find out the true value of real estate agents, @asymmetricinfo writes. https://t.co/KemaNxnJcv
Bye-Bye Big Fees: NAR $418 million settlement could save you thousands on your next home. https://t.co/ZSWwuka7hc Click the image to read more:
Everything you ever wanted to know about the proposed NAR settlement in 25 pages or less. 10 things that will change and the winners and losers. $EXPI $Z $ZG $RDFN $CSGP $DOUG $RMAX $HOUS $COMP https://t.co/aGuBfwXJRA
Anyone who tells you it isn’t a good thing the end of the NAR commission monopoly in residential real estate. Is someone about to make less money. This is an amazingly positive thing for current and future homeowners.
Even though the DOJ wasn't a party in the class action suit, it's been investigating the industry for years, and pressure from its antitrust division likely played a role in getting to the settlement announced by the National Association of Realtors. https://t.co/iDpAQ4B6XJ