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The settlement comes after a Missouri lawsuit challenged the decades-old system requiring the agents of home sellers to split the commission on sales with the agents of home buyers. Most commissions range between five and six percent of home sale prices. Under the settlement, home sellers and their agents can no longer outline compensation for agents representing buyers within their MLS listings. They can, however, negotiate outside of the official listing.
The settlement allows brokers to advertise rates and consumers to seek better deals. Projections indicate a potential reduction in commissions by 25% to 50%, according to TD Cowen Insights, heralding a new era of affordability in real estate transactions. “NAREB recognizes that this settlement, if approved by the judge, will bring dramatic changes to our industry,” Rose stated. “Our members often represent Black families and individuals who struggle to raise money for the down payments needed to purchase homes due to decades of discrimination and a lack of generational wealth.”A dedicated task force will analyze the settlement’s impact and recommend strategies to assist members and promote Black homeownership.