NAR Commission Lawsuit

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Shaking Up the Real Estate Game: The NAR Commission Lawsuit Explained

Imagine you’re selling your house. You hire a realtor, someone who knows the ropes and gets you the best price. But what if a hidden rule inflated the commission you pay? That’s the heart of the lawsuit against the National Association of Realtors (NAR), the biggest real estate trade group in the US. Let’s unpack this drama.

The Beef: Commissions & Buyer Agents

The lawsuit alleges NAR conspired to keep realtor commissions artificially high. Traditionally, sellers pay a commission (often around 6%) split between their agent and the buyer’s agent. But here’s the twist: the seller pays both, even though they only directly benefit from their own agent’s work.

The lawsuit argues this practice is unfair and restricts competition. Think of it like this: imagine buying a car and being forced to pay for the salesperson who helps your friend sell theirs. Not exactly a fair shake, right?

Who’s Who in This Lawsuit Zoo?

The lawsuit names NAR as the main culprit, along with two big brokerage firms: Keller Williams Realty and HomeServices of America. Interestingly, two other firms initially involved (RE/MAX and Anywhere Real Estate) settled out of court for a hefty $140 million. Makes you wonder what they knew, right?

The Verdict: A Rumble, Not a Revolution

In a surprising turn of events, a Missouri jury ruled against the plaintiffs in 2023. However, the $1.8 billion lawsuit in damages shows the fight is far from over. Similar lawsuits are popping up across the country, and the real estate industry is watching closely.

So, What Now?

The verdict doesn’t necessarily mean the practice is fair. It simply means, in this case, there wasn’t enough evidence to prove wrongdoing by NAR. But the conversation about commission structures and buyer agent compensation is definitely here to stay. Will we see a shake-up in the real estate commission system? Only time will tell.


What’s the National Association of Realtors (NAR)?

It’s a huge trade group for real estate professionals, setting standards and advocating for the industry. (

Isn’t negotiating commission normal?

Yes, some negotiation might happen, but the traditional 6% split is pretty standard. This lawsuit challenges the very structure of commissions.

Could this affect how much I pay to sell my house?

It’s too early to say for sure, but the lawsuit has brought transparency to the issue. It might lead to more flexible commission structures in the future.

Should I wait to sell my house because of this lawsuit?

The lawsuit shouldn’t affect your selling timeline. Market conditions and your specific property are bigger factors.

What are my options as a seller?

Discuss commission rates with different realtors and explore alternative commission models, like flat fees or discount brokers.

How can I stay informed about this lawsuit?

Keep an eye on real estate news websites and legal blogs for updates on the ongoing cases against NAR.

The NAR commission lawsuit has sparked a debate about fairness and transparency in the real estate industry. While the legal battle continues, it empowers both buyers and sellers to ask questions and explore options when it comes to realtor commissions.

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