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  • The Biggest News Jason Rosenberg

Real Estate Commission Lawsuit: What Home Buyers and Sellers Need to Know

A recent jury verdict in a real estate commission lawsuit could have a major impact on home buyers and sellers. The jury found that the National Association of Realtors (NAR) and several large real estate brokerages violated antitrust laws by fixing commission rates. This could lead to lower commissions for real estate agents, which could save buyers and sellers thousands of dollars.

What is the significance of this lawsuit?

Real estate commissions are typically paid by the seller, and they are typically 6% of the purchase price. This means that on a $300,000 home, the seller would pay $18,000 in commission.

The plaintiffs in the lawsuit argued that the NAR and the brokerages were colluding to keep commission rates high. They alleged that the NAR used its market power to pressure brokerages to set commission rates at a certain level.

The jury agreed with the plaintiffs, and they awarded them $1.78 billion in damages. This is a major victory for home buyers and sellers, as it could lead to lower commissions in the future.

What does this mean for home buyers and sellers?

It is too early to say definitively what the impact of this lawsuit will be on home buyers and sellers. However, it is possible that commissions will come down as a result of the verdict.

If you are thinking about buying or selling a home, it is important to be aware of this lawsuit and its potential implications. You should also shop around and compare different real estate agents to get the best possible commission rate.

Here are some tips for negotiating commission rates with real estate agents:

  • Be prepared to negotiate. Don't be afraid to ask your real estate agent to lower their commission rate.

  • Get multiple offers from different real estate agents. This will give you leverage when negotiating commission rates.

  • Be willing to walk away. If you can't reach an agreement with a real estate agent on commission rates, be willing to walk away and find another agent.

Remember, you are in control of the transaction. You have the right to choose your real estate agent and to negotiate their commission rate.

Link: Business Insider article: Real estate agents are facing a $1.8 billion antitrust lawsuit that could save home buyers and sellers thousands of dollars: https://www.businessinsider.com/real-estate-agent-lawsuit-verdict-commissions-broker-fees-2023-11





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