Landmark Settlement Revolutionizes Real Estate Commissions, Potentially Lowering Homebuying Costs

A $418 million settlement with the National Association of Realtors could change how agent commissions are structured, making homebuying more affordable for many.

• The settlement removes the requirement for seller's agents to advertise buyer's agent commissions, allowing for more flexible and potentially lower fees.
• Buyers may now need to sign agreements with their agents, leading to more transparency and possibly higher out-of-pocket costs for some.
• Experts predict commission fees could drop to an average of 3% to 4%, potentially saving homeowners over $10,000 on higher-priced homes.
• The changes could shift some commission costs directly to buyers, impacting first-time buyers the most.
• The real estate industry may see a shift towards more competitive pricing and negotiation of agent fees.

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CNBC Sun Sentinel Washington Post