On Tuesday, Judge Stephen Bough granted preliminary approval to the $418 million antitrust settlement in a Missouri court.
Housing experts say the settlement may effectively demolish the current real estate business model.
Under the terms of settlement, which was announced in March, sellers’ agents will no longer be required to offer commissions to buyers’ agents.
While the settlement does not explicitly spell the end of the traditional 6% commission, split between the seller’s agent and the buyer’s agent, commissions are expected to fall because they will become competitive and negotiable.
If sellers are no longer paying buyers’ agents, homebuyers may be on the hook to pay their broker directly.
Persons:
Stephen Bough, Matt Hanley, ” Hanley, “ I’m
Organizations:
CNN, National Association of Realtors, NAR, homebuyers
Locations:
United States, Missouri, Minnesota