After a $1.8 billion verdict, the clock is ticking on the 6% real estate commission

By
Real Estate Agent with (408) 425-1601 CA bre 1519182

                                                   Sam Shueh

                                                    BRG Realty

                                                    San Jose, CA

LINK of the entire article from Apple News.

After a $1.8 billion verdict, the clock is ticking on the 6% real estate commission
Real estate commissions are not going away following the $1.8 billion verdict on Tuesday in a federal jury trial brought by homesellers that found the National Association of Realtors and two brokerage firms conspired to keep commissions artificially high.

The verdict handed down in a Missouri court on Tuesday that found NAR and two brokerage firms, Homeservices of America and Keller Williams Realty, were liable for $1.8 billion in damages for conspiring to keep commissions artificially high, may mark the beginning of the end of how homes are bought and sold.

Two other firms initially named in the suits brought by home sellers Re/Max and Anywhere Real estate, formerly known as Realogy, which is the parent company of Coldwell Banker, Century 21, Sotheby’s International Realty and Corcoran settled out of court for a combined $140 million. As a term of the settlement, they each announced a commitment to make changes in their business practices — including not requiring agents to be members of NAR.

SamShuehRealtor@gmail.com                     (408) 425-1601

Comments (5)

Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There are buyers that aren’t going to know the steps to buy a home,” Davis said. “They have to pay for a down payment, closing costs, appraisals, inspections. If they also have to come up with money to pay for a buyer’s agent, some just won’t and they’ll get in over their heads or they won’t buy at all. Not having representation will make the market less inclusive.”

Nov 05, 2023 08:43 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Sam,

It's all going to get very interesting. There are appeals and will tie up the courts for 2-4 years. No doubt there will be changes and will be waiting to see what shakes out. Buyers need representation that is for sure.

Nov 05, 2023 03:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sam Shueh  my take is do not rush to judgement there is what is called an appeals process and that takes about three years so not much will change in the next three years, Endre

Nov 05, 2023 08:57 PM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

Its not over yet!  NAR will appeal and it may take sometime to settle all that. Mean while let's become better negotiators or commission from the party you represent even if it mean to have them finance your fee in to their mortgage like the closing costs.

Nov 06, 2023 03:41 AM
Roy Kelley
Retired - Gaithersburg, MD

The industry will be closely following this series of cases and wondering about the end results.

Dec 11, 2023 09:42 AM