National Association of Realtors Agrees to Radically Change Commission Structure

The way Americans buy and sell homes had a major shakeup Friday, with a powerful realtor group agreeing to overhaul the standard 6 percent commission on purchases—a move that’s expected to dramatically reduce the cost of real estate transactions., which represents 1.5 million U.S. real estate agents and has set the guidelines for home sales for decades, agreed to drop the mandatory commission to settle lawsuits that accused it of artificially inflating commissions for its agents.

The deal still requires a federal court’s approval, but, if given the OK, it stands to make the costs surrounding buying and selling homes significantly cheaper. Without a standard commission, realtors would be able to offer different rates—allowing consumers to shop around and decide on which realtor, and what commission rate, fits their needs.it was their “goal to preserve consumer choice and protect our members to the greatest extent possible.”that this is biggest change to U.S.

The change comes on the heels of two verdicts that went against the N.A.R., which was found liable for artificially inflating real estate commissions in some instances—something it still denies doing. With the threat of similar lawsuits continuing to roll in, experts predicted the organization may agree to ditch its standard commission to put a stop to the repeated litigation.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” Wright said, according to. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances.”

Source: Real Estate Daily Report (realestatedailyreport.net)

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