National Association of Realtors (NAR) the largest trade association in America

Boston Condos for Sale and Apartments for Rent

National Association of Realtors (NAR) the largest trade association in America

Perhaps not for long. Under the most likely scenarios, the firm said it expects agent count to decline by as much as 80 percent over time, with members of the National Association of Realtors falling from about 1.6 million today to between 300,000 to 600,000 members.

The lawsuit against the NAR, for their commission split agreements started last week. The class action lawsuit claims that the long-standing commission-sharing system used by real estate agents is anti-competitive.

The argument is that requiring sellers to pay for both the listing agent and the buyer’s agent violates antitrust laws and drives up transaction costs for consumers. Even though the case just started, jury selection was last week, but already there have been some effects on the real estate industry.

Last week, the NAR announced that they were changing their “participation agreement” to allow the buyer’s commission to be any amount (even $0) in a listing. 

NYC’s predominant broker organization, The Real Estate Board of New York (REBNY), announced this week that they will now be prohibiting listing brokers from paying the buyer’s agent.

The new policy in NYC is that buyer’s agent will be paid directly by the seller. I just spoke with a well respected Beacon Hill broker who thinks Boston will follow NYC lead to avoid any potential litigation. 

However:

The NAR is confident that they will win the lawsuit.

Updated: Boston condo for sale website 2023

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So where does this non-profit association spend its money? The answer I think its on lawyers.

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