What a $418 million settlement on home-sale commissions may mean for you

The National Association of Realtors (NAR) recently settled an antitrust lawsuit for $418 million.

This settlement has the potential to significantly impact the way homes are bought and sold in the United States.

Currently, the NAR’s multiple listing service (MLS) facilitates the compensation rates for both buyers’ and sellers’ agents.

When a property is listed, the home seller negotiates with the listing agent what the compensation would be for a buyer’s agent, and this compensation is displayed on the MLS.

However, if a seller isn’t aware that this is negotiable, they often end up paying the full brokerage fee listed.

The proposed settlement would remove the commission offer altogether from the NAR’s system.

This means that home sellers would no longer be responsible for paying the buyer’s agent commission.

However, it’s important to note that some of these changes may take some time to materialize.

One potential impact of this settlement is that buyers may become responsible for paying their own agent’s fees.

This is a potential new charge that buyers will need to consider in their budget.

Historically, a buyer’s agent might receive half of a 5-6% commission on a home sale, which can amount to thousands of dollars.

Another potential impact is that buyers may be required to sign a contract with their agent earlier in the process.

This would be a precaution to protect buyer’s agents who may now be working without the guarantee of compensation from the seller.

Overall, the proposed settlement could have a significant impact on the home buying and selling process.

It’s important for buyers and sellers to be aware of these potential changes and to consider how they may affect their own real estate transactions.