Real estate commissions, unassailable for decades, could crumble after landmark settlement
Settlement changes home purchase practice, shifting buyer agent fees from sellers to buyers.
- Bilawal Riaz
- 1 min read
The National Association of Realtors has settled a legal dispute that changes the traditional practice of sellers paying for the buyer’s agent in home purchases. The settlement, costing $418 million over four years, aims to save sellers billions annually but could complicate matters for buyers. Starting in July, buyers will need to pay agents representing them, potentially shifting $15,000 to $18,000 in commission costs back to buyers. The settlement prohibits listing buyer agent compensation, requiring written agreements on compensation and services. The agreement intends to enhance consumer choice and protect members. However, the impact on real estate transaction costs and the industry’s future remains uncertain.