Real Estate: What to Know About the Recent Commissions Settlement

A revolutionary new settlement was reached by The National Association of Realtors that will affect realtors, buyers and sellers. Here is everything you need to know. We will dive into this issue more in-depth in our April 10 print issue.

• The National Association of Realtors agreed to pay $418 million over four years.
• The lawsuits they settled accused the real estate group of putting rules into effect that artificially inflated real estate commissions.
• One of the most important parts of the lawsuit: the settlement would eliminate a 6 percent sales commission.
• Typically, when someone looks for a new home, a broker who has access to listings will work with the buyer at no cost upfront.
• A homeowner who lists their home for sale usually needs to hire professionals to market the house. The price is included into the final price paid by the buyer.
• The buyer will now bring the entire price to the table, and after this ruling, the seller would get to keep a little more.
• Also, with the new settlement, the buyer will now need to be fully informed in advance about any additional fees or commissions they’d need to pay.
• The settlement also will now have a byer sign a formal contract with a broker explaining the services they’d get and for how much money.
• If a buyer decides not to work with a broker, they can hire a real estate lawyer, appraiser, or another housing market expert.
• Sellers can offer to pay the cost of a buyer’s team as an incentive, however, if a home is popular, incentives most likely won’t be offered.
• According to CNN, the shift will expect to “dramatically reduce the cost of buying and selling a home.”

tagsD.C.dc real estatenational association of realtorsreal estatereal estate newsWashington