BiggerPockets Real Estate Podcast

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

Mar 22, 2024

A massive $418 million settlement by NAR will revolutionize real estate agent commissions, potentially leading to lower fees. The New York Times' Debra Kamin dissects the implications and the industry's future. Will a new model emerge from the ashes of this century-old system?

36:25

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Debra Kamin

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Quick takeaways

NAR's $418M settlement could reshape real estate agent commissions and competition, impacting buyers and sellers.

Potential changes in real estate agent commission structures may lead to industry transformation and impact pricing strategies.

Deep dives

Antitrust Lawsuits Against NAR Settled

Recent antitrust lawsuits against the National Association of Realtors have been settled, potentially altering the real estate investing landscape. These lawsuits accused NAR of practices that could change how real estate transactions are conducted, particularly impacting the way people buy and sell homes. The settlement wraps up multiple lawsuits with accusations of anti-competitive rules set by NAR, particularly regarding agent commissions and market control.

Adversity in Real Estate Market Leads to Growth Opportunities

00:33

Impact of Reduced Home Commissions on Housing Market

00:23

Introduction

2min

Examining NAR's Influence on Real Estate Market and Antitrust Lawsuits

4min

Real Estate Commission Collusion and Lawsuit Settlement

9min

Exploring the Impact of Real Estate Commissions on Home Prices and Market Dynamics

4min

Impact of Lawsuit Settlement on Real Estate Commissions

19min

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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