National Association of Realtors (NAR) reports, real estate market analysis reports

Real Estate Industry Faces Changes with NAR Settlement on Commission Structure

Aug 19, 2024, 06:47 PM

The real estate industry is experiencing significant changes following a settlement involving the National Association of Realtors (NAR) lawsuit. The settlement aims to make realtor commissions more competitive, which some experts compare to a tax cut. However, this change is expected to increase new home costs in the long run. Discussions are emerging around the traditional commission structure, with some predicting that the public will eventually recognize the inefficiencies of past practices. The settlement has sparked debates on whether homebuyers should avoid paying percentage-based fees and opt for more flexible payment options. This shift is prompting real estate agents to reconsider their commission strategies, as buyers and sellers may now negotiate commissions directly.