realtor pronunciation

Real estate industry facing pushback to longstanding rules setting agent commissions on home sales

LOS ANGELES (AP) — A series of court challenges seek to end longstanding real estate industry practices that determine the commission agents receive on the sale of a home — and who foots the bill.

A federal jury in one of those cases on Tuesday ordered the National Association of Realtors along with some of the nation’s biggest real estate brokerages to pay almost $1.8 billion in damages, after finding they artificially inflated commissions paid to real estate agents.

The class-action lawsuit was filed in 2019 on behalf of 500,000 home sellers in Missouri and several border towns. The verdict stated that the defendants “conspired to require home sellers to pay the broker representing the buyer of their homes in violation of federal antitrust law.”

If treble damages — which allows plaintiffs to potentially receive up to three times actual or compensatory damages — are awarded, then the defendants may have to pay more than $5 billion.

“This matter is not close to being final as we will appeal the jury’s verdict,” Mantill Williams, a spokesman for the NAR, said in a statement. “In the interim, we will ask the court to reduce the damages awarded by the jury.”

Williams

Real estate brokers weigh in at the end of commission rules

ST. PETERSBURG, Fla. — The Real Estate industry is changing. The National Association of Realtors announced on March 15 an anti-trust settlement of $418 million that’s ending rules on commission.

What You Need To Know

The National Association of Realtors announced on March 15 an anti-trust settlement of $418 million

Until now, home sellers often paid about 6% of the sale price toward a fee that would be split between their own agent and the buyer’s agent

The new plan can leave realtor pay up in the air, depending on the contract

Sunny Alexander is the Owner and Broker for Red Sash Reality and one of more than one million members of the NAR is ready to adapt.

“Change is good,” he said. “It’s going to be rough learning the new normal.”

Alexander has been in the industry for nearly 20 years. He started his journey in Tennessee after serving in the Army. For the last six years, she’s shown homes in Tampa Bay.

She says she’s the voice of reason for her customers and tries to guide them to the best decisions.

“They either need to sell a house or they need to buy a house,” she said. “So