Realtors Fixed Prices
It’s a $1.78 Billion real estate earthquake! And growing.
A commission “conspiracy” of agents was an illegal antitrust violation. It made sellers pay buyers’ agents half of “excessive” 5-6% commissions from nearly every home sold, a Missouri jury decided this week (11/2/23).
Sellers no longer would be required to pay buyer agents under the verdict.
Damages of $1.78 billion were awarded against the National Association of Realtors (N.A.R) and two brokerages, Keller Williams and Home Services.
That amount could be tripled under antitrust law. That would mean the final amount could swell to almost $5 billion. Final orders in the case are still coming.
Before trial, Re/Max settled for $55 million. Anywhere Real Estate (formerly Realogy) whose subsidiaries include Century 21, Coldwell Banker, and Sotheby’s International Realty, settled for $83.5 million.
That means there’s plenty of money to support the winning plaintiffs defense against NAR’s expected appeal.
The U.S. Justice Department is just as likely to jump in. The DOJ will be a lot more thorough than anyone could be in a district court case. Antitrust has been a top priority for it.
It took the jury less than three hours to decide the case.
If commissions are lowered, and there’s real competition, the price of every home will come down, jobs and wages will go up, tax revenues will increase, and people can move easily to better and more fulfilling jobs.
Plaintiffs’ lawyers already have filed another class action in Missouri federal court, also naming N.A.R. as a defendant along with major brokerages including Compass, eXp World Holdings, and Redfin.
NAR President steps down