The Impact of Brokerage Fees on the Real Estate Market

A recent federal jury decision awarded almost $2 billion in damages, potentially tripled under an antitrust suit, claiming that the National Association of Realtors and large brokerages conspired to keep real estate fees artificially high. The percentage of fees paid by buyers and sellers remains the same, regardless of the value of the house. Fees are also high in comparison to other international markets. Eliminating the formal arrangement that enforces these fees may transform the real estate market, increasing mobility and prompting new fee structures based on hourly rates.