The case has been winding through federal courts since 2019, when a group of home sellers alleged in a lawsuit that the National Association of Realtors, along with real estate firms Keller Williams Realty and HomeServices of America, conspired to keep commissions artificially high. The plaintiffs pointed to an NAR rule that required sellers to make a nonnegotiable commission offer before listing a home on the widely used property database, the Multiple Listing Service, or MLS. That commission hovers around 5 to 6 percent of the home sale price and is paid by the home seller both to the sellers agent and the buyers agent.
The rule has stifled competition and has resulted in higher prices, the plaintiffs alleged. They argued that if the rule were not in place, buyers would pay commissions to their own agents and buyers agents would have to compete by offering lower rates.
Mantill Williams, a spokesman for NAR, said the association will appeal the verdict, adding that “this matter is not close to being final.”
“We stand by the fact that NAR’s guidance for local MLS broker marketplaces ensures consumers get comprehensive, equitable, transparent and reliable home information and that brokerages of any size, service or pricing model get a fair shot at competing,” Williams said.
HomeServices, whose parent is Warren Buffett’s Berkshire Hathaway, said in a statement that the company will also appeal the verdict. “Today’s decision means that buyers will face even more obstacles in an already challenging real estate market and sellers will have a harder time realizing the value of their homes,” the company said in a statement.
Keller Williams spokesman Darryl Frost said the company is “disappointed that before the jury decided this case, the court did not allow them to hear crucial evidence that cooperative compensation is permitted under Missouri law.”
This is a developing story and will be updated.
Credit: Source link