San Jose, CA
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