National Association of Realtors to pay out $418M settlement

DAYTON, Ohio ( WDTN ) — Following a $418 million settlement between the National Association of Realtors and home sellers, the way real estate transactions work is expected to change.

The lawsuit will be paid out over four years. 2 NEWS spoke with local realtors about the deal, which they say will change the way they’ve been doing business for years.

What’s not yet clear is whether or not this will reduce the cost of homes in the Miami Valley.

Many people are at their wit’s end in the struggle to find affordable family homes. They’re hoping the lawsuit will bring skyrocketing prices down by focusing on how real estate agents get compensated for home sales.

“Really, there’s just that constant struggle of finding exactly what you want that’s affordable.”

“A listing broker or seller wants to offer compensation to a buyer’s broker that cannot be on the MLS,” said Seth Task, public and federal issues liaison for the National Realtors Association.

Previously, agents have used the multiple listing services database as a way to share information on properties listed and invite other brokers to cooperate in the sale and would be compensated if they produce a buyer.

Some feel they have used this to steer clients to higher compensation listings and keep the status quo at 6%.

“NRA never mandated commission. There was never any discussion, no rules about how much to charge ever,” said Task.

Also in the settlement, agents will have to enter into a buyer’s agency agreement that will help clarify what services agents are providing them.

“All about communication. And I think what this is going to do, it’s going to challenge real estate agents to step up and better communicate their value,” said Mark Peebles, chief visionary officer for Nav X Realty.

Peebles says this will help bring more clarity but won’t fix the high prices for homes.

“We’ve got to build homes and we need to get interest rates down, which hopefully as inflation comes under control, will begin to help buyers to have more affordable homes,” said Peebles.

29-year-old Jordan Gray is trying to find a home for his family of six. He likes the potential for more transparency.

“I think it’s important to be able to see exactly what you’re paying for and then, you know, have that opportunity to opt out of some of those things,” said Gray.

Gray says he does not think he will be able to take advantage of some of the changes because he will be buying sooner rather than later but hopes it helps someone else.

“Good to see that there’s hope for the future generation and people who are going to buy a house here in the distant future,” said Gray.

Realtors told 2 NEWS we could see a change in the market as early as summer, and lawsuits filed in other states could also impact how business is done moving forward.

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