Law Suit- National Association of Realtors
Law Suit- National Association of Realtors had a class action law suit brought to them in June. Attorneys presented the suit on behalf of the 5 largest US housing markets. The suit is in reference to their buyers compensation agreement. I found this article on reddit written by Inman. https://www.inman.com/2019/03/08/what-the-bombshell-buyer-side-lawsuit-means-for-realtors/
As common practice in real estate across the country, home sellers agree to pay the buyers brokers commission. Normally the commission is 5-6%, and the brokers will split that at closing.
The Law Suit with the National Association of Realtors is indicative of angry sellers. In my experience, sellers absolutely hate having to pay for anything for the buyers side, including concessions, closing costs, bank fees, AND their realtors commission. The fees to sell a house will add up quickly. Many sellers are choosing “ for sale by owner” and working with buyers agents, paying 3%, which is a lot more reasonable for them to accept.
NAR decided that sellers should pay fees from their equity. Paying for both sides commission does not seem fair, and only implemented to benefit sales volume. Policy such as this places a lot of financial weight onto the sellers side, allowing a buyer to ease into the process.
How do you feel about the law suit with the National Association of Realtors buyers compensation agreement? Drop your comments below.