The 6% commission, a standard in home purchase transactions, is no more.

In a sweeping move expected to reduce the cost of buying and selling a home, the National Association of Realtors announced Friday a settlement with groups of homesellers, agreeing to end landmark antitrust lawsuits by paying $418 million in damages and eliminating rules on commissions.

The NAR, which represents more than 1 million Realtors, also agreed to put in place a set of new rules. One prevents sellers’ brokers from setting buyers’ agents’ compensation, which critics say led brokers to push more expensive properties on customers. Another ends requirements that brokers subscribe to multiple listing services — many of which are owned by NAR subsidiaries — where homes are given a wide viewing in a local market. Another new rule will require buyers’ brokers to enter into written agreements with their buyers.

The agreement effectively will destroy the current homebuying and selling business model, in which sellers pay both their broker and a buyer’s broker, which critics say have driven housing prices artificially higher.

  • helenslunch
    link
    fedilink
    arrow-up
    3
    arrow-down
    5
    ·
    3 months ago

    How are we both right when what you quoted says commission is negotiable and the article says NAR requires 6%?

    • MicroWave@lemmy.worldOP
      link
      fedilink
      English
      arrow-up
      5
      ·
      3 months ago

      The CNN article just updated to remove the part about the required 6% and I’ve updated the summary to match.