The National Assn. of Realtors on Friday said it will make changes to its commission rules to settle national allegations the requirements stifled competition, a move that may reduce costs for consumers.
The settlement, which still must receive court approval, could mark a major change in the housing market.
Today, sellers typically pay a 5% to 6% commission when they sell their homes, with half of that going to the listing agent and half to the buyer’s agent.
Under an existing Realtor rule, listing agents must make an offer of compensation to buyer agents in order to list homes on multiple listings services, or the MLS.
This rule, according to lawsuits filed against the Realtors, reduced competition and kept commission rates artificially high.
Under the terms of the settlement, the Realtors would prohibit offers of agent compensation on the MLS and pay $418 million.
In a news release, the nation trade group said it continues to deny any wrongdoing as it relates to its current commission rule.