Indeed, the Consumer Federation of America recently announced a settlement between the Department of Justice (DOJ) and the National Association of Realtors (NAR) that could potentially reduce costs for home buyers. This came about after a lawsuit in which the DOJ had accused the NAR of rules and regulations that were leading to inflated commission prices for residential real estate services.
Under this settlement, realtors are not allowed to misrepresent the amount of commissions that home sellers must pay to buyer brokers or allow them to claim that buyer-broker services are free. In fact, home buyers could be spared from paying as much as 6% commission.
Realtors must also provide greater transparency about the commissions they charge, enhancing competition and allowing customers to gain better deals. This could result in a sizeable amount of savings for home buyers and foster a more competitive real estate environment overall.
Although it’s not entirely sure how this will play out in the market, as other factors could influence real estate broker practices, this could definitely be seen as a potentially positive development for home buyers. Of course, it’s always important for buyers to fully understand all the costs involved when buying a home, and to seek professional advice if necessary.
