Posted on 03/15/2024 11:08:04 AM PDT by where's_the_Outrage?
The National Association of Realtors has agreed to a landmark settlement that would eliminate real estate brokers' longstanding automatic commissions, commonly of up to 6% of the purchase price.
Instead, home buyers and sellers would be able to negotiate fees with their agents up front. If the $418 million legal agreement is approved by a federal court, consumer advocates predict the ranks of real estate agents will thin, further driving down commission prices.
"For years, anti-competitive rules in the real estate industry have financially harmed millions," said Benjamin Brown, managing partner at the Cohen Milstein law firm and one of the settlement's negotiators. "This settlement bring sweeping reforms that will help countless American families."
The NAR acknowledged the pending settlement in a statement Friday and denied any wrongdoing.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers," said Nykia Wright, interim CEO of NAR, whose previous chief stepped down late last year amid fallout from a federal lawsuit.
"It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” Wright said in the statement.
(Excerpt) Read more at nbcnews.com ...
Well, if you add a buyer's commissions agents buyer agents will push your home.
Good grief.
Did end users benefit from the AT&T breakup? NO!
This is a lot of nonsense that benefits lawyers and agencies.
Government agencies. Sorry that i did not make it more clear.
“Did end users benefit from the AT&T breakup? NO!”
I am guessing you don’t remember the AT&T monopoly ...
Always been a split when I bought /sold property
Split or not, still less money in seller’s pocket.
Sounds like a recipe for Blackrock to own all residential real estate.
At $418 million, it sounds like I can sign up for about $50 back on the commissions for the last 4 housing transactions I’ve been involved with.
we are a very litigious society and the paperwork in a RE transaction can be overwhelming. Some people have successfully sold their homes on their own and more power to them I know investors who do it all the time. but 95% are not experienced enough or able to sludge thru the legal documents.
My wife and i are brokers and we get ill and uninformed clients all the time.
75 years ago the RE contract in CAL was 1 page. now there are dozens of pages and disclosure and title reports and so forth. That’s why we still have work.
We charge 4.5 % and give the buyers agent 2-3% depending on the number of showings and how long it takes.
If we bring the buyer we charge 3.5% We have an obligation to represent both in that case. Yes. it can be done.
Lastly of course commission is negotiable. In a mid or large sized market if an agency told me I must pay 6% I would just walk away and start contacting others.
Be careful with the 1 and 2 % Who is paying the buyer’s agent and what services won’t they do? Some brought about never going to see the house Big mistake.
Real estate broker fees have always been negotiable where I live. I’ve never chose to negotiate because I remember the biblical parable about ‘not binding the mouth of the ox.’
That has been the law (at least in NJ where I am licensed) for as long as I can remember. Brokerage fees are negotiable between seller or buyer and agency. The agency may stand firm on a certain percentage if it chooses to do so; the buyer or seller seeking representation can go elsewhere if they do not agree.
I got my notice..
I sold my house in 2018, and an part of the class...
I don’t know how much yet..
That was almost my 1st thought, that it should be 418 Billion, at least.
The same way that cutting employees in a business saves costs.
I sold my last house using Zillow, no commissions on me.
When I sold my house in NY State, the realtor made almost four times what the agent made, and he did all the work. My house was in contract in a week to the first person who looked. For that 6%, the agent should do all the contract work, as is done in Florida.
CORRECTION
When I sold my house in NY State, the realtor made almost four times what the LAWYER made, and the LAWYER did all the work. My house was in contract in a week to the first person who looked. For that 6%, the agent should do all the contract work, as is done in Florida.
There was never any reason for them to get a percentage of the sale. A fixed fee or an hourly fee is much fairer.
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