In March 2024, the National Association of Realtors (NAR) agreed to a settlement that could significantly impact real estate commissions. The agreement stems from a lawsuit related to commission rates.
Here are the key points:
The NAR will pay $418 million over four years to settle claims from home sellers.
The settlement eliminates NAR policies that some argued restricted competition and kept commission rates artificially high.
This means commissions could potentially become fully negotiable between buyers/sellers and realtors. Local realtors say that commissions have always been negotiable.
It could potentially lead to lower commission rates for home sellers.
While the agreement has been reached, it's important to note that it still needs court approval. If it does, appeals could follow. The court will render a decision on May 9, 2024.
Read more:
National Association of Realtors https://www.nar.realtor/magazine/real-estate-news/law-and-ethics/the-truth-about-the-nar-settlement-agreement CBS News https://www.cbsnews.com/news/realtor-commission-settlement-nar-national-association-realtors/
Santa Cruz Chamber of Commerce https://web.santacruzchamber.org/news/newsarticledisplay.aspx?ArticleID=2049
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