The residential real estate industry is currently undergoing significant changes due to legal actions and settlements involving major players such as the National Association of Realtors (NAR), Zillow, Costar, and The Real Brokerage. A recent NAR ruling has led to a reduction in seller commission rates from the traditional 5-6% to 3.5%, with the selling agent receiving 2.5% and the buying agent receiving either 1% or a flat fee ranging from $10,000 to $25,000. This adjustment is expected to decrease the total commission pool by 40 to 45%. Additionally, The Real Brokerage has agreed to a $9.25 million settlement in a commission lawsuit and will make operational changes as part of its settlement agreement. This includes releasing its subsidiaries and 16,000 agents from the suit's claims. Analysts from KBW have indicated that the DOJ plans to intervene in NAR's commission lawsuit settlement, particularly concerning the off-MLS compensation workaround created by the terms of NAR's settlement agreement.
The Real Brokerage agreed to change business operations as part of its proposed settlement agreement in Umpa v. NAR. https://t.co/p0zfJMMwlp
The Real Brokerage agreed to change business operations as part of its proposed settlement agreement and release Real, its subsidiaries and its 16,000 agents from the suit’s claim https://t.co/bjwuBWvEp2
The Real Brokerage settles Umpa commission lawsuit for $9.25M: The Real Brokerage joins NAR, Compass, Keller Williams, Anywhere and RE/MAX in settling commission-related litigation. https://t.co/hap4NtAxJQ
DOJ will intervene in NAR’s commission lawsuit settlement: KBW analysts: Analysts at KBW believe the DOJ will take issue with the off-MLS compensation workaround created by the terms of NAR’s settlement agreement. https://t.co/uALc9C31v9
Real Brokerage makes $9.25 million deal to settle commissions suit https://t.co/JAYiZu5LLH #realestatenews #realestate
The immediate reaction to the NAR ruling seems to be the seller pays 3.5%, instead of 5-6%. Selling agent still makes 2.5%. The buying agent either gets 1% or $10-$25K flat fee. In essence, the commission pool will decrease by 40 to 45% in total.
Interesting discussion on the residential real estate "portal wars" Discusses the recent NAR settlement and Zillow and Costar $Z $CSGP https://t.co/MxPo8m4FK9