Starting in July, the real estate market is set to experience a significant shift due to a judge-approved antitrust settlement involving the National Association of Realtors (NAR). This $148 million agreement will upend the traditional model where home sellers’ agents offer a set commission of 5 or 6 percent to the buyers’ agents. The removal of this requirement is expected to open up commission rates to negotiation, potentially reducing the costs for sellers. However, this also means that buyers might have to bear the financial burden of their agents’ commissions themselves, potentially increasing overall borrowing costs. The NAR has endorsed the settlement as beneficial for all involved, signaling a move towards a more flexible and possibly competitive real estate market. This development promises to reshape the interactions between buyers, sellers, and real estate agents, with the potential to impact housing affordability and industry standards.
