NAR Lawsuit Settlement 2024 - Explained! 

Does a seller ready requires a listing agent if all these things can be done online via Instagram etc??

There should be an implemented way to educate the buyers. Ok, I know you're a real estate agent and you're trying to protect your pocket..

These were my thoughts as well!

The government will have no choice but to print more notes and lower interest rates.

Well i think, home prices will need to fall by at least 40% before the market normalizes. If you do not know whether to buy a house or not, it is best you seek guidance from a well-experienced advisor for proper portfolio allocation. So far, that’s how I’ve stayed afloat over 5 years now, amassing nearly $1m in return on investments.

Finding financial advisors like Melissa Rose Francks who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.

You can sell your home for 100,000 less than what its worth.. I mean, you can give it away for 5 buck if you want to. The question is will you do it? Do you actually think people will do that? Supply and Demand..

100%. Nice to see someone understand what is going on. There are too many idiots commenting on this subject.

In a democratic state Renters have a lot of power against mom and pop landlords. The same laws don’t apply to black rock, vanguard, etc

​@nychansen lol you are referring to squatters not renters. Democrat things smh

You don't have to much power when your property taxes keep going up !! If you don't paid your property taxes the government take it even if is paid off. . We give up that power when we agree to paid property taxes.

I have been saying this for weeks, biggest hurdle for buyers- is down stroke/ and adding this additional cost is going to steer buyers to homes where seller's are offering buyer agent concession. Human behavior is very predictable - Many agents (not all of course) but many won't show properties now that offer less % splits than the average in a given geographic area. Lots of conversations for sure!

Surprised that you mention a Real Estate Fee. Any entry level agent is definitely cautioned not to mention any specific marketing fees. Bring up any fee puts you in danger of price fixing. Question your RE experience

@cpmv as an independent contractor- I run my business the way I run my business. I talk about the reality of human behavior, I talk about marketing plans, photos/ads/digital/target markets: I talk about stats- sold home prices-about strategies & yes I talk about my commission & how much I charge to market a home or represent a buyer-what services I provide and what the seller or buyer can expect of me- this has been done in commercial re for years. The buyer paying commission & the seller paying commission- nothing new- of course I also mention to ALL clients- that they are free to chose an alternative licensed professional to market their home or negotiate their transaction if they don’t feel the value I bring them is worth what I suggest as compensation. - further for me to run my business and market their home effectively. Does this sound fair to you? It is ALWAYs the seller/buyer choice to pay commission % amount. It is also my choice to work or not work for that %. Price fixing is when multiple Agents in a geographical area get together and decide on what they ALL will charge % wise & that is a no-no. Pro tip- don’t talk to other agents - talk to your clients

I’ve been commenting on this, too! We are planned late fall buyers who were going conventional. Today, my husband said- fine, we will use our VA.

Plus 80% of loans are owned by Freddie and Fannie and they also forbid any compensation in the loans.

Thanks for listening!

I like your positive attitude. Hope it helps...

seriously? like the door to do business online hasn't been around for past 10 years? basically do as much as possible online now as it is.

That will be a bad idea! The buyer has no representation therefore the sellers agent will be working for the seller not the buyer !!

Online presence is definitely the way to brand yourself as a REALTOR®. Consumers are online at least 90% of the time especially on social media. Use online presence to educate and add value to your real estate services. Buyer Agency is not dead! Remember that agency relationships can be created be implied or expressed, it doesn’t necessarily have to be in writing if the consumer thinks they are represented from the actions of the license holder.

@@kelliewen4834they can hire lawyer to bid/review contracts. They have fiduciary responsibility because among other things such as law BAR, they will pay lawyer directly.

@@kelliewen4834 Why would a sellers agent work for the buyer?

You didn't have to pay 6%. There are already a variety of commission structures and various brokers who charge anything from 1% + . The argument that people are stuck paying 6% these days is simply not true and hasn't been for a long time.

So....Will you be reimbursed??

I have bought and sold many homes without the representation of a realtor. I have also been told several times by buyers agents that they would not show my home to their clients if I did not have a sellers agent and would pay 2.5% vs 3%. Not sure how their clients would feel about that, but probably not great.

False

Original poster is correct. @@TamilLatest

All with proceeds from the seller...lol. The seller doesn't physically pay the buyer's agent, but it comes out of their net profit.

How? It will literally put the burden on buyers to pay their agents (or go unrepresented). The sellers will pocket the extra 3% and leave the buyer holding the bag.

@@bw0081 Buyers agents are not going away and they won’t work for free. The costs to the buyers will be built into the offers. In essence it will be requesting the seller to cover the costs. They of course can reject that request. But if buyers don’t have cash to pay their agent, or don’t want to spend it on buyer’s agents fees, they may just tell their agent they don’t want to see homes that don’t offer to pay buyers agent’s fees. This is something a buyer’s agent can find out in a phone call or by referring to public real estate websites.

You didn’t pay anything! The buyer did! The commission was baked in your listing price.

But you didn't have to pay 6%. There was never any forced commission. At least you likely will not have to pay the crappy buyer agent. If you didn't like the commission your agent was charging you should have dumped your agent. Many offer different rates. The video explains it very well.

@@KAZHE63 That makes no sense...lol. The 6% comes from the seller's end...have you ever bought or sold a house? Yes, the buyer spends the money, but the 6% commission the seller pays reduces their net profit by 6%...how do you not understand that?

False! @@KAZHE63

I agree. There are a lot of bad sellers. Posting stupid dance moves on social media and sticking a sign down isn't really working.

I like the way he explains it too but I think he’s wrong in a lot of ways.

You must be an agent. Get real. Commission has been a standard 5 % to 6% for decades...and if you don't want to pay it...people won't work with you. It has never been negotiable. And you do not need a buyers agent...you do not even need a sellers agent. The seller does not take the pictures...they hire someone. THey do not sell the property...the internet does that. They do not write the contract...lawyers have already done that. They do not make sure the home is free and clear...the title company does that. A sellers agent literally opens the door and lets people in and out and insists the sellers leave. I live on the water...I know my property...the tides...the water depths....what size boat you can safely get in and out of the channels at what tides...everything the buyer needs to know. A seller agent is clueless. Most agents say they are not even for the buyer or seller anymore. They are not fiduciary agents. They are simply "contract specialists" is the new term. Agents are beyond overpaid.

Great post. After yesterdays announcement, I feel all sellers and buyers should just put the brakes on all decesions, until this gets figured out. The time period from now to July will certainly be an interesting one.

@@garrydye2394 "Commission has been a standard 5 % to 6% for decades...and if you don't want to pay it...people won't work with you" big difference between standard and mandatory. Just because someone does not want to do the work for less money than what you want to offer does not mean its not negotiable...agents could always take less, but if they value their time and energy, they may opt not to spend it for compensation below their perceived value, would you work for much less than the value you believe you bring or if it would take up more of your time and energy than the value of the compensation you would get, I would hope not. There are PLENTY of discount options available for sellers who do not want to pay standard service commissions, nothing has or will prevent them from asking a realtor to take a discount and if they wont working with a different option or even For Sale By Owner...part of the job is coordinating all the services so sellers do not have to, but again if that is something you want to do FSBO is for you, but most people do not. They want to pay someone a service fee for doing it correctly.

Commissions have always been negotiable. 6% is not set in stone.

@@scottsamuel7595 You're right, which lead more to why this whole thing happened in the first place

You’re exactly right. I don’t understand why they settled. Why should these people win a case where they agreed to the dollar amount? This isn’t the normal class action where the washing machine got moldy for 1000s of people. Everything was transparent and nothing was wrong.

@@usecommonsentz3764 the lawyers from NAR really dropped the ball on this one plus the jury completely ignored facts.

60k on a million dollar home is reasonable to you ? how does that help anyone ? i dont use realtor period . they bring nothing to the table at all . oh there's the toilet , oh there the kitchen , no sh$t we dont use a broker to buy stocks anymore so why are we using a realtor to suck money out of the air

We already had that model in this country...what happened?? Buyers sued because they believed it was unfair that they did not have representation. This is also America not Europe. There have universal healthcare & high taxes. People do not need to make as much money to survive so many things are cheaper in Europe.

@@mommom3172 We shall see wont we, but having an exclusive agent selling a home and earning 1 to `11/4%0 works fine elsewhere. I think most buyers realize the idea of a buyers agent working for a buyer, not for himself first, is ludicrous, they are I think in it for the commission . Suing for breaching the fiduciary responsibility is almost impossible to do on most purchases, the cost to sue is high, if you could find a lawyer to sue for you, and it would take a year or longer to bring to court. Even if you won the buyers agent if he worked for a larger company could appeal, and that would add to the legal bill.

Europe is also leaning more towards our way currently.

@@IamEricWard Not in matters of Real Estate. they laugh at the system the US has had for years.

@@harrydestaffano565 that is not true. Read up on the structure there and issues they face in markets. Also look at some of the changes they are trying to make. And no, they are not laughing at our system. Don’t forget their economies are no match for ours.

You would save money if you did the legwork to figure out how to represent yourself. It’s screwing buyers into forcing them to either pay and lose money or risk representing themselves and screws buyers agents whose services will be in less demand.

Thank you!

Also, the expertise of commercial buyers and their agents and lawyers is a serious level higher in skill and experience.

@@Questionsabout-yv1ks exactly with less protections than typical home buyers. This is going to get messy. Thanks for nothing NAR!!

If this is the case, then prices will drop to the point when buyers can afford to buy and pay the fee. This is how free market works

@@wittttttt agreed. But it will take years to move the price needle significantly enough

This is how I read it. Co-brokes can't be listed on the MLS.

Well explained. Thank you for helping people not freak out. It’s no big deal.

That's all speculation; you don't know what will happen. Also, comparing the new-build market to the resale market is like comparing apples to oranges. It will most likely be market and situation-dependent, just like sellers offering closing cost assistance; it will be more prevalent in some markets than others. For example, most sellers may not provide buyer's agent commission in a seller's market. Furthermore, not offering buyer agent commission up front gives the seller more leverage in negotiations. Let's say a buyer can't afford to pay their agent's commission; the seller could offer to pay the commission in exchange for less or no repairs to be done. At a minimum, it automatically allows the seller to either pocket or negotiate roughly 3% somewhere in the deal, which changes a lot. You are right; on paper, not much has changed, but for savvy sellers and unestablished buyers, it has.

@@pinky882 I’m in the Greater Houston Area market which has a ton of builders. These builders pay 3% - 6% commissions for agents to bring them buyers and the business model works. Comparing builders to resale is not apples to oranges. It is literally the same thing, a seller with a home for sale. Many buyers and agent now view both options regularly. As long as builders continue to offer below market rates, closing cost assistance to buyers and pay buyer agents commissions of 3% - 6% the resale market will ABSOLUTELY continue to offer to compensate buyers agents. Some listing agents or sellers may think they can sell a resale home without paying a buyers agent but they will be in for a huge disappointment as No agents will show the home OR offers will come in with agents commissions included, so nothing is changing. Listing agents trying to sell with no buyer agent commission will be like FSBOs who think they can sell on their own, yes maybe a small percentage will find success but the vast majority will quickly see they need to offer up a buyers agent commission to get the home sold. Buyers are not going to be paying their agents commission, it won’t happen. The net effect of all this in a year will be nothing changes. The only change will be how buyers agents find out how much commission is being offered.

@@pinky882 I am in the Greater Houston Texas market where there are a lot of New Construction Builders. These builders pay buyer agents 3% - 6% commissions to bring them buyers, this business model works and won’t be changing. Comparing new construction to the resale market is not apples to oranges, it is literally the same thing, a seller offering a home for sale. Many buyers and agents view both options when shopping. As long as the builders continue to offer below market interest rates, closing cost assistance and pay buyers agents 3% - 6% the resale market will ABSOLUTELY stay in line and continue to offer buyer agent commissions. Some agents or sellers may think they can sell a home without offering a buyer agent commission but they will be in for a huge disappointment when they get no showings and the home doesn’t sell. Buyers aren’t going to be paying their agent to show them homes for sure. If an offer does come in then it will include a buyers agent commission, so nothing is changing. Listing agents trying to sell without offering a buyers agent commission will be like FSBOs, there may be a few success stories but the vast majority will fail and go back to what has worked. Even FSBOs are willing to pay buyers agents the majority of the time to bring them buyers. The only change will be how buyers agent find out what the commission will be. Once all the plays out a year from now, there will be no net change.

Soms realtors have suggested a commission fee for showing homes and a flat fee negotiated once the deal goes through. It could actually help both sides even though the public thinks this is great news lol. Im not a realtor and i think this isnt goimg to end well for buyers/sellers. It will suck big time for us

@@priusgame1178if I have to pay an agent to take me to a showing, I’m not going to have an agent.

@bw0081 the comedy here is you guys have always had a choice lol. Even commissions can be negotiated, so I'm not really sure what is being celebrated. Lol most people thinking they've finally won a victory will never ever actually buy/sell a home without an agent and actually come here and post. You could actually go with no agent, but you won't really do it. Just like the last 50 years, you've always had the option to go no agent. Let us know hoe that goes

@@priusgame1178I mean it makes all the sense in the world for me to have an agent as a buyer, as they are being compensated by the seller and not me and my wife. However, if it changes to us having to pay 2-3% on top of what we’re already offering for homes, there’s just no way I’m doing that. Especially if I’m paying per house visit. So I’m not certain where the comedy is for you here as I don’t see it being a laughing matter. Buyers are already being squeezed by already outrageous prices and our agents shouldn’t have to be another one.

@bw0081 nothing has changed the last 100 years. You guys have always had the option to have no agent to buy/sell or at the very least negotiate a commission. I'm asking everyone to go ahead and do it and let us know how it goes. Few will do it and instead will cry foul to agents for things all clients have had control over for generations lol

I drive a toyota and live in a modest middle class home. When I bought and sold 2 previous homes the Agents took 6% and drove up in a BMW Mercedes. Both lived better than I did. Barely spent 40 hours selling my home. 3 of the hours was an afternoon with an open house. Two of my neighbors marketed their own house , did an open house on thier own and did very well. My sister used An agent who only charged 3%'and she did a fantastic job. There are a some newer Agencies that have very low fees.

Is that not already being done since the seller pays all commissions now on properties you are appraising?...The only difference will be the buyer and the agent will have an agreement on how much is being paid to buyer agent for commission and you will check the box in the RPA that says seller agrees to pay buyer's commission in the buyer broker agreement, which will be attached...decoupling and not making commission to buyer agent agreed upon as part of the listing is the only thing that changed. I guess if buyer's agents are going to be okay working harder and taking less, then they will do that but you will start to see many less buyer's agents overtime willing to do the work...

The sales price commission is factored in already presently with the seller's contributing this? Either the home will appraise or it won't, nothing changes that.

An estimated 600 million. Google “How much did Michael Ketchmark (the lead attorney) make for winning the NAR lawsuit.” It might have changed a little with these newer settlements, but that’s what the number was when the lawsuit first went in the plaintiffs favor for 1.6 billion. The homeowners will be receiving about $2,000 or so a person.

Since the winnings are awesome, attorneys from around the country have been filing copycat lawsuits. It’s like bitcoin going up in value and everyone starts investing or a booming housing market. This is a niche right now for attorneys to make awesome income and to create a dynasty of financial fortune for their own families. It’s a good gig!

The lawyers are making hundreds of millions and Biden is giving speeches on how he is doing this to drive down the prices of homes. Is it starting to get more clear now?

Correct. That's why I never understood the entire premise of the lawsuit. Commission is negotiable and has been for a long time.

@@Jackson_Hts_Mr_Randy_Watson Right, the lawsuit is about the real estate industry conspiring to artificially inflate real estate commissions using the NAR's MLS Commission Sharing Rule, which requires sellers to offer commission to the buyer's agent. Yes, it is negotiable, but it has not and is not generally presented that way. They make it appear that not only is the seller paying the commission required, but 3% to each agent is standard; that is the artificial inflation the lawsuit addresses. Basically, they were accused of conspiracy and fraud. The NAR did not admit any wrongdoing, but they settled. They can try to hide behind the fact that commissions are and have been negotiable, but that doesn't change all the shady high-pressure tactics that have been going on for years, mainly to sellers.

But it's rarely presented that way...that's the whole point. Sellers have been pressured into offering/paying 6% in fees to be competitive for so long that the market has established itself that way, making it essentially non-negotiable in many instances. You can say it's negotiable on paper, but that's not always the case. There's also been retaliation for sellers not offering 6% commission fees.

@@pinky882 Bingo! Its a sneaky unspoken system that realtors never explain in detail to buyers/sellers. This law brings transparency and now realtors will have to explain why they are worth high % commissions on already inflated home prices. Now days buyers are shopping on zillow and providing mls #’s to their agent on homes they are interested in. I’ve also noticed agents drive separately now for showings.

@@pinky882 Non sense. Use google, look up "discount brokers." Interview a few.. Hire the one you like.. Who is "pressuring" anybody at the dining room table? This isn't 1976.

It's always been negotiable.....I think more disclosures will cover the problem....and sellers will pay if they want a competition to sell the house for the most.

1% to the broker and agent’s broker?

@@JannelleCT 1 percent to be quiet honest really isn't worth it representing a buyer unless it's a million dollar transaction. After a split, TC cost, Transaction fees. We're walking away with nickels and dimes. Listing side of things is way easier and homes basically sell themselves in this current market. Assuming best case scenario here.... a 5 million dollar sales volume with a brokerage that offers absolutely no fees, no mls fees, supra fees. You're only walking away with 50k gross for the year. 5 million in volume is a lot of transactions outside of major metropolitan cities. Minimum wage in California is 40k on full time here in the coming years. Interesting times...

Buyers agents working for 1 percent won't begin to justify the work put in. Some estimate that an agent having as many as 4 listings is equal in effort to an agent working with 1 buyer. Buyers agents show the houses and put in much more legwork. Also the buyer assumes the most risk therefore needs quality representation. Because at the end of the Transaction the seller knows what they received, MONEY...While the Buyer HOPES they know what they have In the property. Buyer Beware

Buying a home is nothing like buying shares. I think what you're saying is possible, if people were more trusting, but they're not. Maybe set up an app similar to Airbnb, with buyer's credit card, license, all info.. then use door codes for them to tour the home without realtor, and negotiate price directly with seller. Might work for local buyers and sellers only, not for out of towners.

@@AlcaniZFilms It is happening already the younger generations and people that had a mouse in their hands at age three are all for it . Realtors ( most) never did the right thing and explained the relationship upfront . This can help the industry follow guidelines and do it right . There are many agents that had been bending the rules and having the buyers sign the disclosure before closing when it should be done at the first meeting . It seems to be happening already many are buying OPEN stock knowing it will take off .

Zillow says my house is worth 100k more than I could sell it for.

Zillow algo's are childs play compared to where we are with the development of AI; and zillow is not what I am talking about. Most people simple do not understand what is happening; I have been following AI development for 20 years, our entire world is about to change. Thats what this is about. The lawsuits are bullshit. @@JannelleCT

They can, but they can't advertise it on the MLS.

So it's unknown and the buyer's agent is at the mercy of the seller's agent. So we have to ask before the showing. And also our buyers agreement will have to state what we expect to get paid. If seller's agent doesn't pay the full amount then the buyer pays the difference or all of it. If not then buyer's agent is at risk for working for free.

Its still negotiable you can ask the seller to pay all or a portion.

And I'm not sure the screws over both the seller and the buyer. Mark my words and get back to me in 6 months from now.

Demand to stop paying the buyers agent. They work for the buyer...not the seller. Stop paying it.

yeah you can ask the buyer to contribute to the commissions......but if you showed 2 homes......1 that pays the buyers agent......1 that doesnt....which one will a buyer be more competitive in purchasing? The one that the seller pays the commissions. Commisssions should be disclosed into the pa

@@garrydye2394 They work for the seller because the seller has offered the property for sale, they are broker of the transaction. Seller needs a home sold, list broker offers it on market to other brokers who may help that sale by bringing a buyer to that seller. They help the seller to a desired outcome by representing a buyer's interest in a transaction so a seller can sell the property. Besides the agreement is that they are offering commission to their list broker to sell their property, if the list broker cannot find the buyer then the seller is authorizing the list broker to work with another broker who may bring a buyer to help and split the commission with the other broker.

attorneys.

never made sense why they made so much more money selling a $900k home vs a $300k home. Flat fees make so much sense.

It should be its a racket

They sold your home right? I hope you are joking.

@@HulaShack1 they sold it

Consumer will never see a dollar because all the slimy attorney ate up the fee😂😂😂

@@justus1222 really??

A salary? Wow. Obviously you've never worked in real estate. Do you think agent's would hustle and find listings, or help buyers as much as they do if they received a salary? Plus, how are brokers supposed to pay salaries if their agents aren't motivated to find homes to sell or help customers sell their homes? Salaried workers usually sit around a do a lot of nothing.

sounds great. compliments dual agency and gives no incentive to other listing where sellers have chosen to provide commission. remember, nothing has ever prevented owners from listing on their own.

That is NOT what he is saying , The seller, pays the sellers agent and buyer, pays the buyers agent . BOTH need to be represented by an agent > Why should the seller be represented and leave the buyer in the cold to fend for themselves ???

A lot of agents are willing to list for 1-1.5%.

it has been in fact a value of marketing the property as well as history sfr set by property traded with this very thing. "to produce a willing and qualified buyer" the seller "should" do what they feel is best for marketing their home competitively and in the best light. NOBODY is forcing them to list with an office. Even before this lawsuit they could have said they are only going to list for example 3% related to listing agent. - okay great. welp see how that goes. Not sure if I said this here, I am not with nar or associated and in the past have had friends and family think they can do it on their own in both selling and renting where it was n't even comparable to their 3rd hobby let alone put any real research or time into. Most of the time this came with failure. Everyone is different. All agents and offices different too. @@kelliewen4834

@@kelliewen4834buyer can pay an agent directly since we are in USA, correct?

The world always needs ditch diggers.

Learn to code.

Buyers should pay for buyer agents. Buyer agents will perhaps eventually be paid hourly like RE lawyers or investment lawyers. Draft offer? - hourly fee. Counter? -Hourly fee. Then probably add a ‘success fee’ that buyer can pay into their closing costs next to the lawyers and title fees etc.

Go online and see what the average agent earns. Then look at all the regulations they are under. Finally, why would an agent show a house for free?

@@JannelleCT The average agent isn't a full time agent. They are millions of agents and most will never make a career out of it. Pick another metric than average salary.

It is good for them. Bad for useless real estate agents where it’s the end of easy money

What you just said makes zero sense. You said the barrier will fall, said it's way too high, then said it should be way higher, like that of a doctor or lawyer. Right now it is way, way easier to become a realtor than to become a doc or lawyer. What do you mean?

It’s a jab at how low the barrier to entry is but realtors are always comparing themselves to lawyers.

Yup, and when do we ask... when you scheduled to show the property or At the offer? Then to be sure we get a commission our buyers agreement must state that if sellers aren't paying my commission the buyer will. Buyer will want to know and if the buyer has to pay the commission will they walk away from the deal.

A lot can change by that time!

@@glendapettey8501 I expect it to. But to get the industry set by then with these rules that create several other issues is not smart.

You mean Savvy?

Be careful! You can't spell savvy and you are going to try to negotiate the single largest purchase in your life with thousands of dollars in jeopardy in escrow if you make a mistake. That's terrifying.

You’re kidding, right?

This will do nothing to prices. Prices are through the roof because 44% of the transactions last year were by institutional money, i.e, Blackrock. As long as this is allowed, the new home buyer will be priced out.

They never did.

you can have a standard without it being a mandate...industry standard for a cheeseburger is $5 it doe not mean you don't have options or the ability to make your own at home. Don't confuse standard with mandate. Also don't forget that communicates what most agents are willing to do the work for before it becomes not worth doing the job...no one is or was a prisoner here...even these FSBO warriors who think they don't need agents, they always have been able to sell their own houses with no agents, so I am not sure why they are so upset. Most people who have a job and cannot dedicate their lives to selling their own house or don't want the liability are fine with paying agents common rates for compensation or looking for cheaper options which have do and will continue to exist. I don't really like paying $120 per hour shop rate at my mechanic, but he is free to charge what he likes and if I do not like I can try to find a mechanic to provide that service cheaper, or even do it myself, but its not really worth the time and hassle when I can just hire someone to do it right and be on my way with minimal hassle. Realtors provide a service, if people do not see value in that service, do it yourself or find someone to do it cheaper.

a realtor should never ever say "industry standard". they should say "my fee." the former can see construed as price fixing.@@bryanjuell7686