Realtors Reckon with a Seismic Shift to How They Get Paid
March 20, 2024
The National Association of Realtors recently settled legal claims alleging that the real estate industry conspired to keep commissions artificially high. This settlement is anticipated to affect the amount of money that real estate agents will earn from home sales.
In this edition of Above the Line, we examine the diverse impacts on various stakeholders, from individual Realtors to major Fortune 500 companies.
Realtors Reckon with a Seismic Shift to How They Get Paid
Wall Street Journal
Realtors from the suburbs of Maryland to Minneapolis express shock as the traditional model for buying and selling homes is upended. Agents now face the challenge of adapting to potential new payment models or finding new lines of work amidst uncertainty.
Compass Faces $517 Million Risk From Realtors’ Legal Settlement
Bloomberg
Brokerages like Compass face significant financial risks from the settlement, with potential payouts amounting to millions. This underscores the broader economic implications for the industry and the possibility of widespread changes to real estate agent compensation models.
Home Sellers Say HomeServices Owes $4.7 bln in Real Estate Commissions Case
Reuters
In a landmark case, Missouri-area home sellers seek over $4.7 billion from HomeServices, a Berkshire Hathaway unit, alleging inflated real estate commissions. This case highlights ongoing legal and financial challenges within the industry.