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Want to Save Money Buying or Selling a Home? A New Policy Will Help

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Homebuyers could still ask a prospective seller for a concession that includes money to help cover the buyer’s agent compensation. However, a home seller with multiple offers could refuse such a request or opt to go with a bid from a different buyer who isn’t asking for such a concession.

“The real solution is for the industry to work to remove regulatory barriers that make it difficult for buyers to include this compensation in their mortgages,” said Stephen Brobeck, senior fellow at the Consumer Federation of America.

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The NAR has faced multiple lawsuits over the way agent commissions are set. In late October, a federal jury in Missouri found that the NAR and several large real estate brokerages conspired to require that home sellers pay homebuyers’ agent commissions in violation of federal antitrust law.

The jury ordered the defendants to pay almost $1.8 billion in damages — and potentially more than $5 billion if the court awarded the plaintiffs treble damages.

Who and what the settlement includes

The settlement, if approved by the court, would resolve that and similar suits faced by the NAR. It covers more than 1 million of the NAR’s members, its affiliated Multiple Listing Service and all brokerages with a NAR member as a principal that had a residential transaction volume in 2022 of $2 billion or less.

“Ultimately, continuing to litigate would have hurt members and their small businesses,” Nykia Wright, NAR’s interim CEO, said in a statement. “While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances.”

The settlement does not include real estate agents affiliated with HomeServices of America and its related companies.

Last month, Keller Williams Realty, one of the nation’s largest real estate brokerages, agreed to pay $70 million and change some of its agent guidelines to settle agent commission lawsuits.

Two other large real estate brokerages agreed to similar settlement terms last year. In their respective pacts, Anywhere Real Estate agreed to pay $83.5 million, and Re/Max agreed to pay $55 million.

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This article was originally published by a www.aarp.org . Read the Original article here. .

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