By: Ernie Wren
You may have seen the “SO…YOU WANT TO BE A REALTOR” social media article shared recently detailing the paycheck-to-paycheck lifestyle of your average realtor. These types of articles have become more frequent following the recent Missouri court case which found the National Association of Realtors (NAR), and two brokerage firms, Homeservices in America, and Keller Williams Realty, liable for $1.8 BILLION in damages for conspiring to keep commissions artificially high. Two other firms, Re/Max, and Anywhere Real Estate, settled out of court for a combined $140 million. The terms of the settlement included changes in business practices, including not requiring agents to be members of the NAR. It should be noted that the CEO for the NAR resigned days after the NAR being found liable for conspiracy to inflate rates. (CNN)
At the heart of the lawsuit is the complaint that “NAR is forcing home sellers to pay an inflated commission that is then split between their agent and the buyer’s agent. The home sellers argued commission sharing as a condition for access to the Multiple Listing Service was unfair and kept commissions artificially high.” (CNN) So, will this change national and local approaches to commission?
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