Updated almost 2 years ago on . Most recent reply
NAR Commission Settlement
There was a large lawsuit over real estate commissions settled nationally last week and I'm curious what everyone's thoughts are on what if anything it will change in the real estate industry?
From my perspective a 6% commission has never been required. I've never heard it required working as an agent and have sure sold plenty for well under the 6% commission that the lawsuit says was required!
The best I understand it commissions will no longer be displayed on the MLS and buyers representation agreements will be required along with a compensation disclosure that everyone signs showing what the buyers broker will make.
Realtors aren't going anywhere as the home buying process is not simple and easy. I think more and more Realtors will leave the business, which is great for those of us willing to put in the work and navigate the changes so we can still help people buy homes. It's also great for the customer as a part time Realtor does more harm than good.
I've sold real estate in Minneapolis - Saint Paul, Austin Texas, bought a lot in Louisville KY and am also currently licensed in Florida. Many of these new requirements are things that were already required by at least one of these places.
I'd love to hear everyone's thoughts!
- Jordan Moorhead
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Most Popular Reply
The headlines I'm seeing and the support of this ridiculous lawsuit prove how little the general public understands about the real estate transaction. As you stated commissions have always been negotiable, this doesn't change that.
The group the will be hurt the most is buyers, especially low income buyers. If they can't afford to pay a broker they're going to have to go into the transaction unrepresented. What buyer agent is going to work for free? Is the listing agent going to have their best interests in mind?
The lawyers who brought the class action lawsuit are the only ones who will benefit from this. Speaking of which, maybe there should be a class action lawsuit against ambulance chasing lawyers that are scalping 30-60% of a client's settlements.