{"id":79087,"date":"2023-10-31T18:55:58","date_gmt":"2023-10-31T22:55:58","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/jury-strikes-blow-to-real-estate-agent-commissions\/"},"modified":"2023-10-31T18:56:01","modified_gmt":"2023-10-31T22:56:01","slug":"jury-strikes-blow-to-real-estate-agent-commissions","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=79087","title":{"rendered":"Jury Strikes Blow to Real Estate Agent Commissions"},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000787442\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>Real estate agent-related stocks closed lower Tuesday after a jury struck a blow to the home-selling commission structure. Analysts say the case and others like it could change the way brokers are paid, reduce commissions, and\u00a0slash agent head count\u2014but this verdict isn\u2019t the final word.<\/p>\n<p>A jury in the Western District of Missouri arrived at a verdict that the rules surrounding the payment of buyers\u2019 agent commissions were anticompetitive. The jury found that the National Association of Realtors and several real estate companies and affiliates had conspired to raise or stabilized broker commission rates paid by sellers, according to court documents filed Tuesday.\u00a0<\/p>\n<div class=\"paywall\">\n<p>HousingWire reported that defendants, including the National Association of Realtors, Keller Williams, and Home Services of America, were ordered to pay $1.78 billion in damages. Two other companies that had been named as defendants, Re\/Max and Anywhere, formerly known as<br \/>\n        Realogy<span>,<\/span><br \/>\n       recently entered into settlement agreements.<\/p>\n<p>In a statement to <em>Barron\u2019s<\/em>, the National Association of Realtors said it would ask the court to reduce awarded damages and appeal the jury\u2019s verdict. \u201cNAR\u2019s guidance for local MLS broker marketplaces ensures consumers get comprehensive, equitable, transparent and reliable home information and that brokerages of any size, service or pricing model get a fair shot at competing,\u201d they said. \u201cIt will likely be several years before this case is finally resolved.\u201d\u00a0<\/p>\n<p>An attorney representing Keller Williams similarly said it would appeal. \u201cWe followed the law regarding cooperative compensation,\u201d said Timothy Ray, an attorney with Holland and Knight representing Keller Williams. \u201cLooking forward we will consider our options as we assess the verdict and trial record, including all avenues of appeal.\u201d<\/p>\n<p><em>Barron\u2019s <\/em>parent company,<br \/>\n        News Corp<span>,<\/span><br \/>\n       also owns\u00a0Move, which runs the real-estate listings sites Realtor.com and Move.com.<\/p>\n<p>Commissions paid by sellers in the U.S. are higher than elsewhere, according to a 2019 Brookings Economic Studies report. U.S. sellers in 2015 typically paid 5.5% of the sales price\u2014more than double the 2% rate paid by sellers in countries such as the United Kingdom, Sweden, and Hong Kong, says\u00a0the report. That amounts to an extra $35,000 in fees on a $1 million house. <\/p>\n<p>Stocks related to real estate agents closed lower on Tuesday. Among those that fell the most were<br \/>\n        Redfin<span>,<\/span><br \/>\n       Compass, and<br \/>\n        Zillow<span>,<\/span><br \/>\n       which closed between\u00a05.7% and 7% lower.<\/p>\n<p>The case and similar lawsuits could create challenges for real estate agents. A team of KBW analysts wrote in early October that the trial and others like it could reduce annual agent commissions by more than 30% over time, and reduce the number of real estate agents by 60%.\u00a0<\/p>\n<p>Meanwhile, for buyers, the case and lawsuits like it could reduce the commissions paid by sellers and decrease the use of buyers\u2019 agents by those shopping for a home, says Ryan Tomasello, the report\u2019s lead author. Right now, sellers pay the commission for both their agent and the agent representing the buyer.<\/p>\n<p>\u201cIn a new market structure, there is still a scenario where a home sellers can still choose to compensate the buyer\u2019s agent,\u201d he says. \u201cBut importantly, that decision to pay that buyer\u2019s agent is done on a case-by-case basis, isn\u2019t paid at a rate that was preset weeks or months ago by the listing agent and the seller, and is ultimately negotiated by the buyer and their agent.\u201d<\/p>\n<p>The ruling could be negative for Zillow and Redfin, RBC analysts wrote Tuesday.\u00a0The decisions \u201cwould collapse buyer commissions,\u201d analyst Brad Erickson wrote, adding that \u201cvirtually all\u201d of Zillow\u2019s Premier Agent revenue and just over half of Redfin transactions come from buyers agents. Both stocks \u201cpartially reflected these risks\u201d following the Re\/Max and Anywhere settlements.<\/p>\n<p>Write to Shaina Mishkin at shaina.mishkin@dowjones.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/jury-real-estate-agent-commissions-07b1fb4e?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate agent-related stocks closed lower Tuesday after a jury struck a blow to the home-selling commission structure. Analysts say the case and others like it could change the way brokers are paid, reduce commissions, and\u00a0slash agent head count\u2014but this verdict isn\u2019t the final word. A jury in the Western District of Missouri arrived at [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":79088,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-79087","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Jury Strikes Blow to Real Estate Agent Commissions | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Real estate agent-related stocks closed lower Tuesday after a jury struck a blow to the home-selling commission structure. 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