Home sellers win $1.8 billion after conspiracy among realtors
A federal jury ruled the National Association of Realtors and several large brokerages conspired to artificially inflate the commissions paid to real estate agents. This is a decision that could significantly change the home-buying process in the U.S. The realtors’ group and brokerages were ordered to pay damages of $1.8 billion.
Mark Stapp, Executive Director of W. P. Carey Masters of Real Estate Development at ASU, joined Arizona Horizon to discuss the lawsuit and what this could mean for homebuyers.
This decision could rewrite the entire structure of the real estate industry by lowering the cost of moving through reducing commissions. Sellers would no longer be required to pay their buyers’ agents, and agents would be free to set their own commission rates under the verdict.
“I think it’s a pretty big deal,” Stapp said. “We all are looking for a place to live, and those who are buying homes are pretty much dependent on the agents to help them find those homes, negotiate the transaction, et cetera.”
Stapp said this lawsuit is particularly important because real estate drives the economy, and it is a big part of finding housing.
“I don’t think realtors will be out of business,” Stapp said. “I think this industry is going to adjust itself.”