A shift might be on the horizon for the U.S. real estate market.
A Tuesday court ruling may upend the longstanding commission model, where sellers typically pay the commission, later divided between their agent and the buyer’s agent. Without the need to factor in buyer agent commissions, there are potential implications for buyers, sellers, brokers, and even listing prices.
Possible Changes to Homebuying Process
Here’s what you need to know about the case, and how it might affect each facet of the real estate industry.
The National Association of Realtors (NAR) and other franchisors are grappling with the fallout of the multibillion-dollar verdict handed down Tuesday over agent commissions in Missouri. A jury concluded that the traditional practice where home sellers pay both buyer and seller broker commissions is anti-competitive and artificially inflates home costs.
Damages from the case, under the provisions of the Missouri antitrust law, which allows the court to award treble damages, could be tripled to $5.356 billion for the 500,000 home sellers who are part of the class action lawsuit.
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Article URL : https://www.newsweek.com/us-real-estate-court-ruling-commission-model-change-nar-multibillion-verdict-1840008