Loading ...US Realtor Group Settles Lawsuits By Slashing Commissions, Risks Mass Exodus Of Agents
Commissions are expected to drop following the National Association of Realtors’ decision to settle a lawsuit regarding its commission rules.
On Friday, the National Association of Realtors announced an agreement to end litigation of claims brought on behalf of home sellers related to broker commissions. This means the group would pay $418 million in damages and amend the rules that housing experts say will drive down the cost of homeownership. In other words, the standard 6 percent sales commission is gone.
the change to the compensation structure could result in a 30% reduction in the annual commission pool. Analysts further said this would result in a 60% to 80% reduction in the number of real estate agents.
6% fixed commission was always a rort, to fleece the herd.
Free markets = negotiable commission structures = competition