On The Market

201: Breaking: NAR Settles for $418M, Buying and Selling Homes Could Change Forever w/The New York Times’ Debra Kamin

Mar 22, 2024

A bombshell NAR settlement could change how real estate agents are paid. The $418 million deal may lead to lower commissions, impacting agents' livelihoods. The NAR faces challenges like sexual harassment scandals and may lose half of its members. Will a new way of buying and selling homes emerge from this settlement?

35:14

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Episode guests

Debra Kamin

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Quick takeaways

NAR settled for $418M leading to potential changes in agent commissions and competition in the housing market.

Implications of the settlement may result in fewer part-time agents, new payment structures for experienced agents, and lower home prices.

NAR's internal turmoil, declining membership, and potential political impact may reshape its role in the real estate industry.

Deep dives

Antitrust Lawsuits Against NAR Settled

Recent antitrust lawsuits against the National Association of Realtors (NAR) have been settled, signaling a potential shift in the real estate industry. The lawsuits accused NAR of setting rules that controlled how agents are paid and how commissions are communicated, leading to anti-competitive practices. The settlement, totaling $418 million, includes changes such as prohibiting sellers' agents from offering commissions to buyers' agents using databases controlled by NAR. These changes aim to introduce competition and potentially lower home prices.

Introduction

2min

Exploring the Influence of NAR in Real Estate Market Dynamics

2min

Antitrust Lawsuits and the Impact on Real Estate Commissions

3min

Analyzing Real Estate Commissions and Market Regulation

3min

Implications of Lawsuits on Real Estate Market and Investment Opportunities

3min

Shifting Tides in Real Estate Commissions

10min

Real Estate Agents Facing Intense Competition

6min

NAR's Challenges and Controversies Unveiled

6min

Ongoing Coverage of NAR Settlement and Advertisement for Summer Boot Camps

4min

A bombshell NAR settlement could bring wide-sweeping changes to the housing market. After a snowball of NAR lawsuits, the realtor association agreed to settle for a whopping $418 million and make critical changes to how real estate agent commissions are paid and how competition can be upheld. This significantly impacts anyone buying or selling a home and has life-changing effects for every real estate agent and realtor in the country. The New York Times’ Debra Kamin joins us to break the story.

Debra breaks down the enormous legal loss that NAR (National Association of Realtors) suffered last week and the impacts it will have on the housing market. First, we discuss the new agent commission rules, which may break the standard six percent fee that realtors are used to taking. These commissions are real estate agents’ livelihoods, and a new model that supports lower commissions could force many agents to leave the industry entirely.

We’ll also touch on the turbulent times NAR has faced recently, from sexual harassment scandals to changing leadership and, now, a massive settlement that could lose them more than half of their members. Will a new type of real estate agent form from the ashes of this century-old model? Or, could a brand-new way of buying and selling homes transform the housing market? Stay with us; we’ll give you the entire scoop.

In This Episode We Cover:

NAR’s massive settlement creating ripple effects across the real estate market

The new real estate agent commission rules that could shock an entire industry

Changes to the multiple listing service (MLS) that may open the market up to new competition

The future of buyer’s agents and whether or not they’ll remain a critical component to buying a home

Sexual harassment scandals, turbulent leadership, and recent NAR struggles

What the future of using a real estate agent could look like

And So Much More!

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