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
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    3 months ago

    Thanks for editing your comment

    The NAR had required homesellers to include the compensation for agents when placing a listing on a multiple listing service.

    I’ve already addressed this. This is another lie I’ve heard several times, and no one who has claimed this has ever provided documentation of such policies. I have looked thoroughly myself.

    homesellers felt they would lose buyers if they didn’t offer them.

    That’s because they would. Whose fault is that?