Landmark Settlement to Reshape Real Estate Industry

Home buyers and sellers to navigate new commission structures and negotiation complexities starting this summer.

A landmark legal settlement between home sellers and the National Association of Realtors (NAR) could transform the real estate industry, reducing commissions and altering how homes are bought and sold.
Starting this summer, home sellers will pay smaller commissions, and buyers will decide how much buyer’s agents are paid, potentially making negotiations more complex.
The settlement arises from antitrust lawsuits accusing NAR of inflating real estate commissions, with NAR agreeing to pay $418 million but admitting no wrongdoing.
Experts suggest the settlement could lead to a significant reduction in the need for real estate agents, likening their potential decline to that of travel agents due to the internet.
The settlement is expected to cut real estate commission earnings by 30%, potentially leading to a downsizing of the profession and affecting how buyers and sellers use agents.