A new future for buying and selling homes is emerging.
The National Association of Realtors — one of the most powerful trade organizations and political lobbyists in the country — will be enacting new rules Saturday after a nearly $420 million settlement over several lawsuits brought against the real estate giant over price-fixing and antitrust violations.
The complaints focused heavily on a lack of transparency surrounding broker compensation, which has always been negotiable but was often set at an industry standard 5% to 6% of a home’s sale price.
Generally, half of that commission went to the buyer’s agent and the other half went to the seller’s agent.
The median price of a home in Idaho was $460,300 in August, according to Zillow . At that price, the agents would keep almost $28,000 at a 6% commission. That does not include other fees or closing costs. In Boise, that number would be nearly $29,500.
A federal jury in Kansas City ordered in October that the association and several brokerages, such as Keller Williams Realty and RE/MAX, pay $1.8 billion for intentionally inflating real estate commissions .