In late 2019 we shared news of a class-action antitrust lawsuit filed against the National Association of Realtors (NAR) and four of the largest brokerage firms in the country. The chief complaint centered around the fees (commissions) that sellers pay to the buyer's broker being fixed rather than open to negotiation. We agree that real estate commissions, specifically how buyers' agents are paid, should be transparent and negotiable.
Last summer, the Department of Justice withdrew from the proposed settlement with the NAR and announced their intention to investigate NAR's rules of conduct more broadly. We welcome this examination into our industry.
Buyers and sellers deserve to know who is earning what from their transaction and have the option to negotiate those fees. This kind of change would mean an additional learning curve for consumers, but it would also offer them choice. In the current situation, buyer-broker commissions are rarely discussed, let alone negotiated.
Some consumer experts argue that listing and buyer agent commissions should be uncoupled. This option could be viable as long as we put market-approved proposals in place that would allow buyers to pay the fees in a way that doesn't further disenfranchise those without the cash to do so upfront.
Consumers are not all the same; there will always be people who hold price as a primary driver in every interaction (in both directions). Although price is not a universal marker of quality, that doesn't mean that consumers don't want to know the price. For every person who wouldn't opt to discuss the fees, there is another who would relish the opportunity to ask for a better deal. A fair and competitive market would allow consumers to choose for themselves rather than choosing for them.
We fully understand that more information can be overwhelming and that not everyone will take a DIY approach to their homeownership transaction, but we are firm believers in choice.
If you have questions about commissions and fees, we'd love to address them>>