Real estate commission antitrust lawsuit settled for $418M

SPARTANBURG, S.C. (WSPA) — The National Association of Realtors (NAR) settled a landmark antitrust lawsuit Friday.

NAR, which represents more than a million real estate agents, agreed to pay $418 million in damages.

In addition to paying damages, the firm also agreed to eliminate rules on commissions. Going forward, the 5% to 6% commission will no longer be the standard rule.

If the settlement is approved, both buyers and sellers will be able to negotiate fees with realtors.

For Rick Horne, a Greenville based broker and owner of Custom Realty LLC, the changes will be a big shake up to the industry.

Horne said properties listed on the Multiple Listing Server show real estate agents the commission structure for a specific property.

Horne said that in the event is approved, those commission structures will be thrown out the window.

“[A] buyers agent is now going to either negotiate with the specific buyer or negotiate with the proposed seller that they are going to see a property for in advance of seeing that property, or at least they should,” Horne added.

The broker added that many people have just taken things that their broker’s say for face value.

“Now I think they know from an educated standpoint that they can negotiate those commission both on the buyers’ side and the sellers side,” Horne concluded.

According to Horne, there are a lot of details that would need to be worked out before the changes can be in effect.

If approved, the new rules are expected to kick in around mid-July.

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