Sell it your way https://sellityourway.info Sun, 21 Jul 2024 05:08:26 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.1 https://sellityourway.info/wp-content/uploads/2024/07/cropped-Favicon-32x32.png Sell it your way https://sellityourway.info 32 32 NAR: Real Estate Compensation Lawsuits Far From Over https://sellityourway.info/nar-real-estate-compensation-lawsuits-far-from-over/ https://sellityourway.info/nar-real-estate-compensation-lawsuits-far-from-over/#respond Sun, 21 Jul 2024 05:08:26 +0000 https://sellityourway.info/?p=1870 The association says it will continue to defend pro-competitive, pro-consumer local MLS broker marketplaces after one co-defendant settles.

The National Association of REALTORS® says it will continue arguing its case against two class-action lawsuits challenging real estate compensation structures, even after one of NAR’s co-defendants reportedly agreed to a proposed settlement.

Anywhere Real Estate, formerly known as Realogy Holdings Corp., agreed to settle all claims against the company in the two cases, known as Sitzer/Burnett and Moehrl, according to news reports. Details of the settlement, which will need court approval, have not been released. No other parties named in the lawsuits, including NAR and several major real estate companies and MLSs, have agreed to settle.

The announcement of Anywhere’s settlement comes about a month before the Sitzer/Burnett lawsuit is set to go to trial.


For more resources and information on how local broker marketplaces support home buyers and sellers everywhere, check out competition.realtor for infographics, articles and more.


“Settlement is always an option for any party in litigation. NAR’s commitment to defend ourselves in court remains unchanged, and we are confident we will prevail in proving the lawfulness of the rules under attack,” Mantill Williams, NAR’s vice president of public relations and communication strategy, said in a statement. “Pro-competitive, pro-consumer local MLS broker marketplaces ensure equity, efficiency, transparency and market-driven pricing options for home buyers and sellers. The practice of the listing broker paying the buyer broker’s compensation saves sellers time and money by having so many buyer brokers participating in that local marketplace and, thus, creating a larger pool of buyers for sellers. For buyers, these marketplaces save them the burden of extra costs at closing, enable them to receive professional representation and make homeownership possible for more people.”

The lawsuits claim that NAR rules violate antitrust laws and inflate the fees paid to buyer’s agents by requiring a listing agent to compensate a buyer’s agent for listing a property on the MLS. NAR argues that the lawsuits misrepresent association rules as anticompetitive. The rules direct listing brokers to determine, in consultation with their clients, the amount of compensation offered to a buyer’s agent in connection with their MLS listings. Further, NAR says buyer’s agents are free to negotiate compensation with the listing broker that is different from what appears in the MLS. Neither NAR nor the MLS has any say in setting broker commissions.

“The U.S. model of independent, local broker marketplaces is widely considered the best value and most efficient model in the world, with no hidden or extra costs and with more complete, verified information compared to other countries,” Williams said. “We look forward to arguing our case in court.

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Judge dismisses antitrust claims against NAR, Zillow https://sellityourway.info/judge-dismisses-antitrust-claims-against-nar-zillow/ https://sellityourway.info/judge-dismisses-antitrust-claims-against-nar-zillow/#respond Sun, 21 Jul 2024 05:06:22 +0000 https://sellityourway.info/?p=1867 Though the National Association of Realtors is not out of the legal woods yet, the trade group does have reason to celebrate. A federal court judge on Wednesday dismissed all antitrust allegations made by REX Real Estate against NAR and Zillow.

The remaining claims in the case are all against Zillow, meaning that NAR is no longer a defendant in the case and will not have to participate if it heads to trial next month as scheduled.

In his order dismissing the claims, Judge Thomas Zilly of the U.S. District Court for the Western District of Washington wrote that the “Court concludes that REX has failed to present evidence of the conspiracy alleged in its Amended Complaint, namely, a purported agreement between NAR, Zillow, and non-party MLSs to segregate, conceal, and demote non-MLS listings on Zillow’s websites and mobile platforms.”

The antitrust claims against NAR and Zillow were dismissed with prejudice.

In the order, Zilly noted that NAR’s No-Commingling Rule was optional and that about 29% of Realtor-affiliated MLSs had not adopted the rule, without any repercussions from NAR. On its own, the rule “does not constitute direct or circumstantial evidence of an anticompetitive agreement between NAR and Zillow,” Zilly wrote.

“The undisputed evidence in this action shows that neither NAR nor its affiliated MLSs were involved in Zillow’s decision to implement the challenged two-tab display that allegedly drove REX out of business,” he added.

Zilly also pointed out the unlike other brokerage, Zillow continued to display REX’s listings.

“The evidence demonstrates that instead of precluding REX’s listings entirely, like websites such as Redfin did … Zillow expended significant time and resources to ensure that REX’s and other non-MLS listings would remain on its platforms, albeit under a separate tab,” the order reads.

Originally filed by REX in March 2021, the lawsuit alleges that changes made to Zillow’s website “unfairly hides certain listings, shrinking their exposure and diminishing competition among real estate brokers.”

Two months prior, in January 2021, Zillow began moving homes out of its initial search results for sellers who chose not to use agents adhering to the NAR and local multiple listing service (MLS) practices.

In January 2022, NAR filed a countersuit claiming that REX uses false advertising and misleading claims to deceive consumers in violation of the Lanham Act, but the countersuit was dismissed in late April 2022.

In mid-May 2022, REX ceased its brokerage operations

A little over a year later, in mid-June 2023, the three parties involved in the suit, all filed motions for summary judgment on at least some issues, if not the entire lawsuit.

Earlier this month, Zilly ruled on other claims in the lawsuit, allowing three of REX’s claims against Zillow to head to trial: a false advertising claim under the Lanham Act, a claim for unfair or deceptive trade practices under Washington’s Consumer Protection Act (CPA) and a claim alleging defamation.

Although Zillow’s legal battle against REX is not over, the company was pleased with Wednesday’s ruling.

“Today’s ruling is a significant victory for Zillow in this case. The court agreed REX’s antitrust claim was without merit and lacked any evidence to back it up,” Will Lemke, Zillow’s manager of corporate communications, wrote in an email. “This ruling affirms Zillow’s business decisions were squarely focused on improving the data on our website for consumers. With REX’s central argument tossed from this case, we believe the public now sees this case for what it is: REX seized upon another company’s website design change to hide its own business failings.”

The lawsuit is scheduled to head to trial on September 18. NAR and attorney for REX did not return a request for comment by the time of publication.

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Should You Use a Flat Fee Realtor? Everything You Need to Know https://sellityourway.info/should-you-use-a-flat-fee-realtor-everything-you-need-to-know/ https://sellityourway.info/should-you-use-a-flat-fee-realtor-everything-you-need-to-know/#respond Sat, 20 Jul 2024 17:05:29 +0000 https://sellityourway.info/?p=1855 Hiring a flat fee realtor might be a good option if your main priority is a transparent, upfront cost. Depending on the price of your house, a flat fee realtor can save you a lot of money over a traditional realtor.

Flat fee realtors charge a set price for services (usually a few thousand dollars) rather than a traditional commission (2.5–3% of the sale price). So basically, the higher the price of your home, the more you’ll potentially save with a flat fee realtor.

But flat fee realtors usually only offer limited services, which could mean losing out on a higher sale price for your house. If you want to save money and get good service, we recommend a full-service discount agent instead.

We recommend checking out Clever Real Estate. It matches you with top full-service agents in your area for only 1.5%. So you can save money and still get great service.

Advantages of hiring a flat fee realtor

Transparent overall cost: A flat fee realtor charges a fixed fee for their services. That set cost can help you estimate your profits and see your potential savings. And it can help you determine how much money to use as a down payment if you buy a new house.

Potential savings: A flat fee realtor can save you thousands on commissions. The higher your house’s sale price, the more you’ll save using a flat fee realtor. The price stays the same, no matter how much your home sells for. A traditional realtor charges a percentage, so the higher the sale price, the more you’ll pay.

Control of the sales process: Most flat fee realtors will only handle the basics of selling your house. So you’ll probably set the price, schedule showings, and conduct negotiations. If you’re experienced in real estate, this could be a good option.

Drawbacks of hiring a flat fee realtor

Hidden extra costs: Some flat fee realtors charge extra for basic things like photos, open houses, and yard signs. A traditional realtor usually includes these services as part of their package.

Potential lower selling price: A flat fee realtor might not offer all the services you need to get the best offer on your home. And because their fee doesn’t change with the sale price, there isn’t an extra incentive to sell the house for a higher price.

Limited services: Flat fee agents only offer basic services. You might have to do the tasks a listing agent usually handles, like photography, showings, and negotiations.

Potential liabilities: With a flat fee listing, you’ll do most of the work yourself. You’ll have to fill out the necessary paperwork, like the seller’s disclosure. So if you do it wrong, there could be legal consequences.

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Exploring Flat Fee MLS Services in Florida: Pros and Cons https://sellityourway.info/exploring-flat-fee-mls-services-in-florida-pros-and-cons/ https://sellityourway.info/exploring-flat-fee-mls-services-in-florida-pros-and-cons/#respond Sat, 20 Jul 2024 17:00:00 +0000 https://sellityourway.info/?p=1852 The real estate market in Florida is known for its competitiveness and the need for innovative approaches to buying and selling properties. One such approach gaining popularity is the use of flat fee MLS services.

This blog will delve into flat fee MLS services, explore their pros and cons, and understand how they can impact the Florida real estate market.

What are Flat Fee MLS Services?

Overview of Flat Fee MLS Services

Flat-fee MLS services are a modern alternative to traditional real estate brokerage. With a flat fee MLS, sellers pay a predetermined fee to have their property listed on the Multiple Listing Service (MLS), a comprehensive database of properties available for sale. This listing exposes a wide range of real estate agents and potential buyers.

Benefits of Flat Fee MLS Services

Flat-fee MLS services offer several benefits for both sellers and buyers. Sellers can save on commission fees since they only pay a fixed amount rather than a percentage of the sale price. Additionally, sellers gain more control over the selling process, including pricing and negotiations. On the other hand, buyers can access a larger pool of properties through the MLS, increasing their chances of finding their desired home.

Limitations of Flat Fee MLS Services

While flat fee MLS services have advantages, there are a few limitations. Sellers using flat fee MLS services may receive less support and guidance than traditional real estate agents. Additionally, sellers must take on additional responsibilities, such as managing inquiries, showings, and negotiations. Furthermore, flat-fee MLS services may lack the in-depth local expertise that traditional agents can provide.

3 Best Flat Fee MLS Services in Florida

1. Houzeo.com

Houzeo.com is a leading flat fee MLS service in the United States, offering a range of benefits to sellers. There are four key reasons why Houzeo stands out among its competitors:

  • Max Exposure: Houzeo MLS packages provide sellers maximum exposure for their listings. Using Houzeo, your property will be listed on popular platforms such as the MLS, Zillow, Trulia, Realtor.com, Redfin, and many more.
  • 5-star Customer Service: Houzeo takes pride in offering exceptional customer service. Their fully staffed customer service desk is available six days a week, ensuring sellers receive the assistance they need. With chats and emails open seven days a week, Houzeo is committed to providing prompt and reliable support.
  • 100% Online: Houzeo leverages advanced technology to provide a seamless and convenient experience. Sellers can easily list their properties, make changes swiftly, conduct online showings, and receive offers. The Houzeo Mobile App adds further convenience and efficiency to the process.
  • No Listing Commission: One of the significant advantages of using Houzeo is the absence of a listing commission in most states. Instead of paying a percentage-based commission to a listing agent, sellers can opt for a small flat fee to list on the MLS. Houzeo covers 47 states and the District of Columbia, ensuring broad accessibility. It’s worth noting that Houzeo is transparent about all fees, so there are no hidden charges.

💡 Houzeo Pros and ConsFind out the pros and cons of using Houzeo as a flat fee MLS service.

2. Doug Addeo

Doug Addeo is an experienced real estate professional offering flat fee MLS services with several notable benefits for For Sale By Owner (FSBO) sellers.

  1. Multiple Flat Fee Plans: Doug Addeo understands that every seller has unique needs and budgets. To accommodate these varying requirements, he offers multiple flat fee plans ranging from $177 to $895. This flexibility allows sellers to choose the plan that best suits their preferences and add more benefits if necessary. Additionally, sellers can upgrade their existing plans at any time.
  2. Local Expertise: With 24 years of experience in the real estate market, Doug Addeo brings a wealth of local expertise to the table. He has established strong relationships with various Realtor boards across Florida, ensuring sellers seeking local broker expertise can rely on his knowledge and guidance throughout the selling process.

3. Beycome

Beycome is another reputable flat fee MLS service, offering its services in selected states. Here are some key highlights:

  • Unrestricted Revisions and Edits: Beycome understands that sellers may need to change their listings, whether updating the description, adding new photos, or adjusting the price. With Beycome, sellers can make unlimited revisions and edits to ensure their listing is up-to-date and accurate. Furthermore, sellers can switch to a full-service package anytime if they require additional assistance.
  • Expert Assistance, if Needed: Beycome provides expert assistance to sellers throughout the week, available in English and Spanish. Whether sellers have questions, need guidance, or require support, Beycome’s knowledgeable team is there to assist them at every step.

Pros of Flat Fee MLS Services in Florida

1. Cost Savings

One of the significant advantages of using flat fee MLS services in Florida is cost savings. Instead of paying the standard real estate commission, sellers pay a fixed fee. This can result in substantial savings, especially for those selling high-value properties.

2. Flexibility and Control

Sellers gain more flexibility and control over their listing by opting for a flat fee MLS service. They can set the listing price, negotiate directly with buyers, and manage the selling process according to their preferences. This level of control allows sellers to adapt to market conditions and potentially increase their chances of a successful sale.

3. Increased Exposure

Listing a property on the MLS through a flat fee service provides sellers with enhanced exposure. Real estate agents and potential buyers regularly search the MLS for available properties, increasing the visibility of the listing. This exposure can lead to more inquiries, showings, and a higher likelihood of a successful sale.

Another advantage of utilizing flat fee MLS services in Florida is the opportunity to work with a discount brokerage real estate model. Unlike traditional agents who typically charge a percentage-based commission, discount brokerage services offer cost savings by providing their services at a reduced rate. This can be particularly beneficial for sellers looking to maximize their profits and minimize their expenses in the real estate transaction process.”

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Cons of Flat Fee MLS Services in Florida

1. Limited Support and Guidance

While flat fee MLS services offer cost savings, sellers may experience limited support and guidance compared to traditional agents. With traditional agents, sellers receive personalized assistance throughout the selling process, including pricing guidance, negotiation support, and expert advice. With a flat fee MLS, sellers primarily handle these tasks themselves.

2. Additional Responsibilities for Sellers

Using a flat fee, MLS service requires sellers to take on additional responsibilities. They must manage inquiries, schedule and conduct showings, negotiate with buyers, and handle paperwork. This can be time-consuming and may require sellers to acquire knowledge and skills typically provided by real estate agents.

3. Potential Lack of Local Expertise

Another potential drawback of flat fee MLS services is the lack of local expertise. Traditional real estate agents often have in-depth knowledge of local markets, including neighborhood trends, pricing dynamics, and buyer preferences. Flat-fee MLS services may not offer the same level of localized insights, which can be crucial for a successful sale.

Final Thought

Flat-fee MLS services in Florida provide an alternative approach to buying and selling properties in a competitive real estate market. While they offer cost savings, flexibility, and increased exposure, it’s essential to consider the limitations, such as limited support, additional responsibilities for sellers, and the potential lack of local expertise. As with any real estate decision, sellers should carefully weigh the pros and cons before opting for a flat fee MLS service. By doing so, they can make an informed choice that aligns with their specific needs and goals.

*Disclaimer: This blog is for informational purposes only and should not be considered legal or financial advice. Consult with a professional real estate agent or attorney for personalized guidance.

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How to Market a House for Sale https://sellityourway.info/how-to-market-a-house-for-sale/ https://sellityourway.info/how-to-market-a-house-for-sale/#respond Sat, 20 Jul 2024 16:53:32 +0000 https://sellityourway.info/?p=1849 Struggling to sell your home without a realtor? Thinking outside the box may be the key to selling quickly and for a great price. 

When it comes to selling a home, reaching qualified buyers is crucial. But how do you do that? While putting a For Sale sign in your front yard is a common approach, it’s not particularly original and won’t reach a wide audience.

Here are 10 creative ways to market your home and stand out.

How to market a house for sale in 9 steps

1. Sell your house fast with an experienced agent

What is the most effective way to market your home for sale? It’s simple: hire a professional to handle it.

Working with an experienced listing agent is crucial for executing successful marketing strategies for your home. Their local expertise and professional marketing services can significantly boost your chances of selling quickly and for an excellent price.

A strong, experienced agent can provide you with: 

  • comparative market analysis (CMA) to pinpoint a fair listing price that will neither scare away buyers nor invite lowball offers.
  • Professional photography that showcases your home’s best features and creates a warm, inviting atmosphere for potential buyers.
  • Video and 3D tours to increase your listing’s visibility and accommodate out-of-town buyers who can’t visit in person.
  • Posting on the Multiple Listing Service (MLS), the premier platform for home sales, utilized by 86% of all sellers.[1]

Ultimately, a realtor’s adept marketing skills and connections with photographers and videographers play a significant role. Realtor-assisted homes sell for nearly $50,000 more on average than those sold FSBO.[2]

You don’t have to compromise on creative marketing to stay within budget. By partnering with a discount real estate broker like Clever Real Estate, you can access full-service assistance at a fraction of the cost. With Clever, you’ll pay a low flat listing fee of just 1.5%, significantly below the national average commission rate of 2.83%.

2. Play up the neighborhood’s vibe

Highlighting your neighborhood’s unique features and atmosphere can greatly increase your home’s appeal. According to a recent industry survey, 60% of all home buyers cite the quality of the neighborhood as the most important factor determining the location of a house.[1] 

Emphasizing important neighborhood features can attract potential buyers. These may include popular restaurants or attractions, parks and green spaces, and family-friendly amenities like clubhouses and pools.

If you’re selling a condo or townhouse with an HOA, ensure you include quality photos of the amenities provided by the association, such as pools, fitness centers, trails, and shared community spaces.

3. Find motivated buyer’s agents

Connecting with buyer’s agents is essential when selling FSBO. These agents often have a broad network of potential buyers who might be interested in your property. So, networking with agents can significantly increase your home’s visibility and attract serious buyers.

Consider attending local events where real estate professionals gather, such as happy hours, industry conferences, or meetings. Alternatively, you can search for top-producing agents on platforms like Zillow and Realtor.com and contact them directly.

Once you’ve made contact in person, provide the buyer’s agents with a printed or emailed document detailing your home’s key features, including its size, location, and asking price. You can also share your home’s online listing and include any additional relevant information that might not be included in the listing itself. Don’t forget to provide your contact information and preferred showing times.

4. Get creative with yard signs

Differentiate yourself in your area by creating attention-grabbing yard signs that pique interest and generate excitement. Consider using larger, more vibrant, or uniquely shaped signs to attract attention to your property and start conversations.

Using contrasting colors boosts visibility and impact. For instance, red against black creates a striking effect, while red on a white background may appear softer. Ideal outdoor sign colors are bold and bright, like reds, blues, and whites.

The placement of your yard sign matters, too. Position the sign near the sidewalk or street for passersby to read it easily. Avoid making them go too far onto the property. Additionally, smaller sidewalk signs at key neighborhood entrances can improve visibility, especially if the property is away from busy streets.

5. Host a great open house

Open houses are a great idea for FSBO sellers to market their homes and attract potential buyers. However, creating a successful open house requires a lot of attention to detail and planning, and you’ll need to get a little creative. 

  • Choosing the right time for your open house is crucial. While most are held on weekends, scheduling a weekday event after work hours can accommodate busy schedules and potentially attract more attendees. 
  • Promoting the open house extensively through social media, neighborhood flyers, and online listings is essential. Platforms like Zillow can notify viewers about upcoming open houses in your area.
  • Consider the fact that many visitors may bring children along. Creating a welcoming environment with snacks and games can cater to their needs and improve their experience. 
  • Adding inviting touches such as fresh flowers, candles, or decorations, along with maintaining a clean exterior, can significantly boost the appeal of your home.
  • Providing ample information about your home and the neighborhood is also essential. Prepare printed materials in advance detailing community amenities and other relevant details. 

Finally, having a sign-in sheet allows you to collect attendees’ contact information for follow-up purposes. Following up with each attendee afterward can help gauge their interest and address any questions, ultimately increasing the likelihood of a successful sale.

6. Appeal to unconventional buyers

Broaden your scope to appeal to unconventional buyers by offering alternative selling options. 

For example, consider rent-to-own agreements where you lease your home with the option for the tenant to purchase it later. This approach can attract individuals who may not qualify for traditional mortgages but are interested in homeownership. For the seller, it could mean making more money on the home than they would have earned in a conventional sale. 

If your home requires repairs or you need to sell quickly, reaching out to cash home buyers or investors could be beneficial. Investors may be interested in purchasing your property for cash, allowing for a fast sale and alleviating the need for extensive repairs or staging.

Finally, exploring niche markets or unique selling propositions can further broaden your pool of potential buyers. For example, by highlighting eco-friendly features (a tankless water heater or solar panels, for example) or emphasizing a guest room that could be a home office, you could attract buyers with specific preferences or needs.

Get cash offers ASAP!

Considering selling quickly or dealing with repair costs? Cash home buyers offer a viable solution. However, it’s crucial to explore multiple offers to ensure you receive the best price.

You can take this step independently, with realtor assistance, or via a complimentary service like Clever Offers. Clever connects you with thoroughly screened cash buyers, each submitting competitive bids for your home.

7. Use creative videos

Virtual tours, particularly 3D tours with interactive floor plans, offer multiple advantages for sellers. They attract serious buyers, enabling them to streamline their selection process before committing to in-person viewings, thus saving time for all involved parties. 

Research from Zillow indicates that listings featuring a 3D tour receive 37% more views on average than those without one.[3]

To maximize the appeal of your listing, consider creating high-quality videos or 3D tours that captivate potential buyers, enticing them to explore further. Engaging visuals showcase your home and highlight the neighborhood, adding to its allure. Properties with virtual tours also gain increased exposure on Zillow, with higher visibility in specialized search results and dedicated buyer emails.

Zillow’s 3D Home app offers an optional interactive floor plan feature, adding another layer of functionality to virtual tours. This feature allows users to easily navigate the home, aided by a detailed floor plan displaying their current location and the overall layout.[3]

8. Market your house before it hits the MLS

To build anticipation and exclusivity for your home sale, consider showcasing your property before it officially hits the market. This strategy involves offering private showings to select individuals or utilizing social media teasers to attract eager buyers.

Share your home’s photos and key details on platforms like social media or distribute flyers in your neighborhood to provide a sneak peek of what’s to come. Creating a “Coming Soon” listing allows interested parties to glimpse your property before it’s widely available on the MLS or popular real estate websites like Zillow.

This approach can capture the attention of motivated buyers eager to act quickly. You may even receive immediate offers by generating early interest, laying the groundwork for a successful sale.

9. Offer rewards for social media leads

Maximize your social network’s reach by sharing your home listing across platforms like Facebook, Instagram, and other social media channels. Elevate your strategy by motivating friends and family to spread the word.

For example, consider incentivizing their efforts with rewards like gift cards or entries into a contest, encouraging sharing and amplifying visibility among potential buyers.

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What the Realtor Lawsuit Settlement Means for Homebuyers and Sellers https://sellityourway.info/https-realestate-usnews-com-real-estate-articles-what-the-2-billion-realtor-lawsuit-means-for-homebuyers-and-sellers/ https://sellityourway.info/https-realestate-usnews-com-real-estate-articles-what-the-2-billion-realtor-lawsuit-means-for-homebuyers-and-sellers/#respond Sat, 20 Jul 2024 15:31:39 +0000 https://sellityourway.info/?p=1830 Homeowners could see a significant drop in the cost of selling their homes after a powerful real estate trade group agreed last week to resolve antitrust litigation accusing brokerages of inflating sales commissions.

The $418 million settlement calls for the Chicago-based National Association of Realtors (NAR) to eliminate decades-old rules on commissions, and make it easier for buyers to negotiate fees with their own agents or use no agents at all, Reuters reports. The accord resolves claims against more than 1 million members, state and local realtor associations, and most smaller brokerages.

The move could mean major shifts in how buyers and sellers pay their agents – and just how much those fees cost moving forward.

What’s In The Settlement?

The March 15 settlement comes after several years of litigation, including class-action suits from home sellers and a legal battle with the U.S. Justice Department. As part of the settlement, the realtor group agreed to prohibit offers to compensate the buyer’s agent on multiple listing services (MLS), a practice that critics say reduced price competition and led to inflated commissions and home prices.

NAR will also require buyer’s agents to enter written agreements with all clients, outlining their fees and services before moving forward with any work. According to experts, the settlement will usher in sweeping change for buyers, sellers and agents alike.

“It’s hard to predict the timing of actual changes to the real estate market, but it’s clear now that change is coming, and perhaps sooner than anyone thought possible,” says Steve Nicastro, a real estate agent and content lead at Clever Real Estate in Charleston, South Carolina. “This will likely lead to lower commissions overall, and a change in how homebuyers use and pay their agent.”

What Were the NAR Lawsuits About?

It’s a little complicated, but the basis of the recent NAR lawsuits boiled down to the group’s MLS cooperative compensation rule, which was introduced in the 1990s in response to calls from consumer protection advocates for buyer representation

According to that rule, in order to list a for-sale property on an MLS – the databases agents use to share properties amongst themselves – they must offer a commission to the agent who ultimately brings in the winning buyer. Historically, this has resulted in a 5% to 6% total commission, with half going to the seller’s agent and half to the buyer’s agent.

Here’s the catch, though: The buyer doesn’t pay their agent’s fee directly. Instead, the commission is fully paid by the seller as part of their closing costs. According to the recently settled suit, as well as other litigation, this amounts to a form of antitrust, allegedly reducing competition and pushing up commissions higher than services warrant.

While NAR agreed to settle the suits against it, the group has made it clear it denies any wrongdoing in connection with its MLS or compensation rules.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers,” said Nykia Wright, interim CEO of NAR, in a statement. “Ultimately, continuing to litigate would have hurt members and their small businesses. While there could be no perfect outcome, this agreement is the best outcome we could achieve in the circumstances.”

READ: What Do Real Estate Agents Do?

What It Means for Buyers and Sellers

The rule changes, which are set to go into effect in mid-July, represent a major change to the way real estate agents have operated going back to the 1990s, and could lead to homebuyers and sellers negotiating lower agent commissions.

The settlement still needs court approval, but if that comes through, things could start to change in the real estate industry – and quickly. For one, buyers will need to start negotiating with their agents from the get-go.

“If the buyer’s agent fails to negotiate their commission with the seller, they will have to contract and arrange compensation to be paid by the buyer,” says Suzanne Seini, founder of Innovate Realty in Irvine, California. “This can strain first-time homebuyers who may be exercising their max budget to buy a home in the price point and area they desire.”

It could also have benefits, though, allowing buyers more freedom to pay for the services they want – and avoid paying for those they do themselves.

“Buyers will likely desire a more flexible structure now, as they can pick and choose which services they want from a buyer’s agent,” Nicastro says. “So, I think it will be more like a pay-for-service structure versus a 2.5 to 3% flat commission rate.”

Luke Babich, CEO of Clever Real Estate in St. Louis, expects buyers to have more of a “menu” of services once the new rules go into effect.

“You could pay a small fee for an agent to do an on-demand showing for you, or you could pay 0.5% to 1% if you just want help with negotiations – and maybe that’s all provided remotely,” Babich says. “You could pay 1.5% to 2% for an agent who will commit to a certain level of availability and take you to regular showings. We’ll see a wider range in pricing for different service levels.”

All in all, the changes will likely result in reduced commission costs across the board. Prior to the settlement, a report from consulting firm Keefe, Bruyette & Woods projected an “unbundling” of agent services could potentially reduce commissions as much as 2 percentage points or more. This week, economists told The New York Times it could mean about a 30% drop, which would take commissions from about 3% per agent down to around 2% or less.

These are just initial predictions, though. It’s likely that fees and services will evolve gradually over time as the industry, agents and consumers adjust to the new normal

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