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  • Writer's pictureKCStark

Updates: Changes in Real Estate Landscape After Landmark Legal Ruling

Breaking News: Sweeping Changes in Real Estate Commissions


As a mortgage broker dedicated to life liberty and the pursuit of home ownership, the recent historical ruling that found the defendants guilty is already bringing changes that can't be ignored. For better - or worse.. The judge has yet to decide the final verdict; but don't be fooled, changes are happening now. The U.S. real estate market braces for transformative changes. How about that timing?


What was the lawsuit? It challenged the industry's 'commission-sharing rule'.


The National Association of Realtors, Keller Williams, and HomeServices of America were ordered to pay $1.78 billion for conspiring to keep real estate commissions high. This outcome may lead to the abolishment of mandatory commission sharing. Missouri home sellers involved in the class action are poised for damages. An extended appeal process could delay compensation. Don't delay your preparation.


Potential Changes on the Horizon:


  • Commission Structure Overhaul: Home buying and selling commissions are set for a major shakeup

  • Shift in Buyer-Seller Dynamics: The ruling may revise or eliminate commission sharing, impacting how buyers and sellers negotiate and transact.

  • Long Legal Road Ahead: Despite the jury's decision, the appeal process could delay any immediate changes, extending uncertainty in the market.


Immediate Takeaways for the Real Estate Community:


  • Agents' Earnings: Realtors might need to adapt to new compensation models, moving away from traditional commission splits.

  • Sellers' Advantage: Home sellers could negotiate better rates, potentially keeping more profit from their sales. Or not.

  • Buyers' Costs: Upfront costs for buyers may rise if they opt for agent representation, as commission sharing practices could be revised.


My main concern is for the buyers and their agents. History suggest that the biggest obstical to homeonership is saving enough cash for down payments. Shifting the cost to the buyer's side may keep them in a perpetual renter's cycle.


The judges ruling could actually hurt homeowners and buyers.


An unbiased buyer's agent is critical to homebuyers. We're talking about a 30-year obligation and the largest financial decision of most Americans. If you've worked behind the scenes, you know what I mean. There's more real emotion than a TV drama. A buyer's agent protects clients from letting their honest emotions take the place of prudent negotiations.


An experienced real estate agent can provide guidance on these matters, potentially saving the buyer from costly mistakes.


  1. Fair Market Value Assessment: Without expertise, buyers may struggle to determine if a home is priced appropriately.

  2. Negotiation Leverage: Lacking the know-how to negotiate price, repairs, or closing costs effectively.

  3. Legal and Regulatory Knowledge: Misunderstanding complex real estate laws, regulations, or contractual terms.

  4. Inspection Insights: Not recognizing the significance of various findings in home inspections.

  5. Transaction Coordination: Managing the extensive paperwork and meeting critical deadlines during the buying process.

  6. Market Dynamics: Misreading local market trends and future area developments that could affect property value.

  7. Network of Professionals: Access to reliable lenders, inspectors, lawyers, and contractors.

  8. Emotional Decision Making: Becoming emotionally invested, leading to poor decisions or overpaying.



Updates: Changes in Real Estate Landscape After Landmark Legal Ruling
Updates: Changes in Real Estate Landscape After Landmark Legal Ruling

Re/MAX and Anywhere Real Estate Setteled


Both Re/MAX and Anywhere settled before the trial and are initiating changes to commission sharing that could bring a fixed-fee model. With additional lawsuits pending against NAR, including a nationwide class action involving firms like Redfin, the full impact on agents, buyers, and sellers is yet to unfold, heralding a disruptive transition for the housing market.


The decision could lead to major changes in how real estate agent commissions are handled.


If the judge strikes down commission sharing, it would disrupt the current practice where sellers' agents share commissions with buyers' agents, potentially leading to more transparency in agent fees and possibly higher upfront costs for buyers.


  • Sellers might benefit from not having to pay the buyer's agent commission, which could lead to cost savings. Or not.

  • Buyers might be exposed to paying the fees for their agent's commissions, which could impact buyer's eligibility.

  • Buyers and sellers could use the same agent for both sides of the transaction, which has pros and cons.

  • Buyers will start having to negotiating with their agents on commisions.

  • The ruling could also inspire alternative business models like fixed-fee compensation. And more lawsuits.


The full implications of the decision are still unfolding, and appeals could delay any payouts from the lawsuit. Additional lawsuits are in progress, suggesting more changes may come to the real estate industry.

Key Changes to Real Estate Transactions Post-Lawsuit:


Change is coming. Realtors, buyers, and sellers are advised to stay informed and stay tuned for the judges ruling the appeal and potential for more lawsuits.

Have questions? Let's talk and be ready willing and able to prepare your buyers and sellers for these changes.


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