The National Association of REALTORS is the target of multiple lawsuits. These lawsuits target the way that a buyer's agent is paid a commission. So why are sellers targeting the buyer's agent's commission? Well, there are a few reasons. First, it's been traditional for the seller to pay for the buyer's agent, but this practice started in a different time and the tradition hasn't changed with the times. Second, the plaintiffs against the National Association of REALTORS (NAR) allege that the NAR is conspiring with 4 major real estate companies to keep a buyer's agent's real estate commissions artificially high. Finally, they allege that a buyer's agent does not contribute in a significant way to the real estate transaction.

The NAR has asked the courts to dismiss these lawsuits as being baseless and full of incorrect and false information. However, the National Association of REALTORS just agreed to settle a lawsuit filed by the Department of Justice, which alleges the NAR is in violation of antitrust laws and creating an environment that is anticompetition.

If you would like to learn more about these lawsuits, I've referenced the following online news articles:
https://therealdeal.com/2020/06/08/a-trifecta-nar-sued-again-over-buyer-broker-commissions/

https://therealdeal.com/national/2019/06/18/class-action-cases-over-broker-commissions-pick-up-steam/

https://therealdeal.com/2019/04/17/nar-hit-with-another-antitrust-suit-over-buyer-broker-commissions/

https://www.housingwire.com/articles/48832-nar-slapped-with-second-class-action-lawsuit-to-end-buyer-broker-compensation/

https://www.washingtonpost.com/realestate/average-commission-rate-for-home-sales-heads-down-toward-5-percent/2017/01/09/4ee3f048-d6a8-11e6-b8b2-cb5164beba6b_story.html

If you have any questions about real estate commissions or anything else related to buying your first home, please feel free to reach me at:

Christopher Eppich
Associate Broker
HomeSmart
(480) 295-9431 Cell
[email protected]