Addressing the Class-Action Lawsuit Regarding Real Estate Commissions

Brainerd Lakes Real Estate Podcast with Chad Schwendeman

A massive class-action lawsuit has been filed against
the National Association of Realtors and other top brokerages.
Here’s what you need to know about the case.

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When it comes to a real estate transaction, the seller pays the commission for both agents. In many cases, the commission runs anywhere from 5% to 7% of the sale price, which is split between the two Realtors.

In a massive class-action lawsuit, the plaintiffs are suing the National Association of Realtors (NAR) and some of the top real estate brokerages in the country to contest this practice, saying that it’s unfair to have the seller pay the buyer’s commission. The lawsuit goes on to assert that this behavior is illegal and has harmed sellers. As a result, plaintiffs are asking for an incredible $54 billion in damages.

Now, the NAR feels that this lawsuit is meritless, but the law firms representing the plaintiffs have awarded their clients tens of billions of dollars in some of the largest class-action lawsuits this country has ever seen, such as those against Toyota, Apple, and other big-name companies.

So will this lawsuit be successful? I’m not an attorney, so I can’t speak on the merits of the case—only time will tell. Regardless of the outcome, it will take years for the lawsuit to sort itself out in the courts, and you can expect an appeal eventually.

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Plaintiffs are suing the National Association of Realtors (NAR)
and some of the top real estate brokerages in the country for an incredible $54 billion in damages.

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The lawsuit has, however, stirred an even bigger question: Is there a value for real estate agents in today’s marketplace?

Of course, I say yes, but you can speak to my current and past clients to hear about the extreme value we provide by helping them buy and/or sell their home. Throughout all our real estate transactions, we treat our clients like partners.

So if you’re thinking of buying or selling a home, feel free to give us a call or send us an email. We would love to partner with you and help you obtain your real estate goals.