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Landmark $418 million class action lawsuit settlement This bill from the National Association of Realtors (NAR) would change the way real estate agents are paid and shake up the entire industry.
The deal, finalized Friday, takes effect in July and stems from a class-action lawsuit accusing real estate agents of having too much power and monopoly over Americans trying to sell their homes.
The NAR settlement partially removes rules regarding sales commissions for brokers and agents, meaning the standard origination commission rate of 6% no longer exists.settlement just influence However, due to buyer-seller agreements, renters may have to pay brokerage fees when looking for a new apartment.
In the statement, NAR denied wrongdoing.
“NAR has worked for many years to resolve this litigation in a manner that benefits our members and U.S. consumers,” said Nikia Wright, NAR’s interim CEO. “It has always been our goal to preserve consumer choice and protect our members as much as possible, and this settlement accomplishes both of those goals.”
Meanwhile, real estate mogul Barbara Corcoran hints at the news and how it could affect the careers (and commissions) of many real estate agents.
RELATED: ‘Everyone’s scared’: Barbara Corcoran says now is ‘the perfect time to buy a home’ — here’s why
Mr Corcoran explained that the cost of selling a home is likely to fall and competition among real estate agents will increase, but he cautioned buyers not to expect home prices to fall as a result.
“It would be foolish to expect the cost of buying a home to go down,” she wrote. “The real driver in today’s market is a lack of housing and too many buyers wanting it. And if interest rates come down a little bit before the end of the year, there will be a rush of buyers and home prices will rise another 10%. “Deaf” market. “
Still, while Corcoran acknowledged that these are “scary times for real estate agents,” he remained optimistic that something positive could come from the massive changes.
“Change is nothing new for the real estate industry. What I know for sure is that real estate brokerages and their agents are some of the most resilient people in the world,” she said. “They are creative and tough, which opens the door for agents to use their resilience and creativity to come up with new and better ways to serve home sellers and customers.”
Last month, Corcoran appeared on an episode of “The New York Times.”elvis duran show” where she encouraged listeners not to play the waiting game when it comes to buying real estate.
RELATED: ‘All hell breaks loose’: Barbara Corcoran warns about real estate market and interest rates
“Interest rates will never go down to 2 or 3 percent. That’s history, but people still believe they will.” “So let’s say they end up with something that has a 5 in front of it. All the onlookers are rushing into the market and trying to jack up the price. There’s not enough inventory to circulate…who The market will pay more for 10, 15 songs, maybe 20 percent. So why wait?”
Mr. Corcoran’s net worth is estimated at $400 million.