A Missouri court found the National Association of Realtors and two real-estate brokerages guilty of conspiring to inflate real-estate commissions, a decision that will likely have a deep impact on the U.S. housing market.
The verdict was part of the “Sitzer/Burnett” case, which was first filed in May 2019. The trial had begun on Oct. 16, and had concluded after two weeks of testimony. “At the end of the day, when this is all said and done, this whole legal contest will reduce friction costs in housing — an industry that turns over at $2 trillion a year — by upwards of 30%,” Tomasello said.Furthermore, the cases could end up in “improved transparency for consumers around commissions,” Tomasello said. “Today, consumers have very little transparency around how commissions are set, how they’re paid, the means by which they can be negotiated.
Minutes after the verdict, the attorney representing the plaintiffs filed a new suit against NAR, Compass, Douglas Elliman, ExP, Redfin, Weichert Realtors, United Real Estate and Howard Hanna Real Estate Services, claiming that they had committed a conspiracy, according to the Real Deal. “Today’s decision means that buyers will face even more obstacles in an already challenging real-estate market and sellers will have a harder time realizing the value of their homes,” they added.