Another domino has fallen in the real estate industry lawsuits regarding commissions! Which major brokerage just agreed to a settlement?! And how might this affect the upcoming trial against the National Association of Realtors (NAR)?

BACKGROUND VIDEO:    • Real Estate Commission Lawsuit agains...  

00:00 Introduction
00:37 Anywhere Settlement
01:15 Change of Practices
01:49 Plaintiffs' Argument
02:25 Change to Traditional Buyer Agency

Earlier this week on Tuesday, September 5th court documents were filed, and it is being reported that Anywhere Real Estate reached a settlement agreement with the plaintiffs critically in both the Burnett vs. NAR and ALSO Moehrl vs. NAR cases in both Missouri and Illinois, respectively.

Inman Real Estate news is reporting that Anywhere Real Estate agreed to a settlement of approximately $83 million, along with an agreement to "change its practices".

https://www.inman.com/2023/09/05/anyw...

One of the attorneys for the plaintiffs in the Burnett lawsuit, Michael Ketchmark, made a statement on Tuesday following the agreement filing, calling on the National Association of Realtors to change its practice of "allowing the real estate industry to use its [NAR’s] rules as a vehicle for raising…commissions in the sale of homes”.

https://www.realestatenews.com/2023/0...

The plaintiff’s argument is that the clear cooperation requirement between brokers using the MLS's necessitates that a seller pay a commission to a buyer’s agent, thus unnecessarily inflating a seller’s closing costs. The plaintiffs would rather that a buyer pay for their own agency as part of their own closing costs. Or just that the U.S. pivot to a model used in Australia or the U.K. where most buyers are unrepresented.

This could be another indication that change to traditional buyer agency may be coming to the industry. We could see a movement in the industry toward listings where sellers are provided an option of paying ZERO ($0 or 0%) buyer agent commissions. For those properties, buyers would have to either hire their own agent as an additional out-of-pocket expense to have representation, OR choose to go unrepresented and work directly with the listing agent, if such allowed by both the state and broker in question.

The Burnett vs. NAR case is set to go to trial in just a few weeks in mid-October! I anticipate the next couple weeks will be filled with news!

Ted Bland
Realtor, Associate Broker
Libertas Real Estate, LLC
250 N Litchfield Rd - Suite 261
Goodyear, AZ 85338

http://www.TedBland.Realtor
(480) 612-1919

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