Standard commission rates in the U.S. are among the highest in the world. Real estate agents make money by pocketing a percentage of a home's sale price. Could homeowners save money? Most likely, because homeowners are generally on the hook to pay the 6% commission when they sell their p...
or MLS, will no longer be allowed to use the service to offer to pay a commission to agents that represent potential homebuyers. The rule change leaves it open for individual home sellers to negotiate such offers with a buyer's agent outside of the MLS platforms, however. ...
Changes to the way commissions workwent into effect in 2024 as a result of a lawsuit settled by the National Association of Realtors and several major brokerages. The longstanding commission model of sellers footing the bill for both their own agent and their buyer’s, typically totaling 5 to...
While agent commissions have always been around, the way they work changed in August 2024 as a result of a federal lawsuit. Previously, the commission fees for both agents were covered by the seller, often with the cost “baked into” the sale price. Now, sellers may choose whether or not...
And, the Government Accountability Office – Congress' investigative arm – reported in a 2005 study that commission rates continued to be about 5 percent to 7 percent of a property's selling price "regardless of local market conditions, housing prices, or the cost or effort required to sell ...
“A big part of the commission lawsuit was about consumer selection, replacing a default path with more transparency and more choice around buyer-agent compensation,” DelPrete said. “The evidence to date doesn’t support the hype around this being a seismic shift in the industry. Consumers st...
Related Story:Realtor Association Settles Lawsuit on Commission Rules. Fresno Broker Fears ... Stephen Brobeck, senior fellow with the Consumer Federation of America, said this is the kind of system shock needed to break power away from Realtor groups, which have had near-unilateral c...
Commission plaintiffs sue Sibcy Cline — and settle for nearly $1M The independent, Ohio-based real estate brokerage will pay $895K to settle a lawsuit known as Keel for its lead plaintiff, bringing the total settlement fund for plaintiffs in the case to $11.5M by Andrea V. Brambila ...
On March 15, 2024, the National Association of Realtors settled a class action lawsuit by homeowners who alleged that the NAR had illegally inflated the commissions charged to realtors. As part of the $418 million settlement, the NAR agreed to stop allowing broker compensation offers on its li...
“We believe the 5% commission rate is viewed as standard by sellers, which is likely to keep commission rates largely unchanged near-term,” analysts at Jefferies Equity Research wrote in a note immediately after the settlement was announced last month. ...