Real Estate Commission Changes Overview

American Realtors have historically earned high commissions, but a lawsuit, Bernett vs. the National Association of Realtors, challenges this by alleging agents conspired to keep home prices high. Traditionally, both buyer and seller agent commissions were not advertised as negotiable and were paid by sellers, creating a conflict of interest. From July 2024, commissions will not be listed on the MLS, preventing buyer agents from steering clients towards higher commission homes. Buyers will sign contracts with their agents, paying for desired services, potentially reducing home prices.

What was the main argument of home sellers in the Bernett versus the National Association of Realtors case?

• Agents were charging too little commission.

• Agents were not providing enough services.

• Agents were conspiring to keep home prices high.

• Agents were not advertising homes properly.

How were the commissions for buyers and sellers' agents traditionally handled?

• They were paid by a third party.

• They were paid by the sellers.

• They were split between buyers and sellers.

• They were paid by the buyers.

What change will occur in July 2024 regarding real estate commissions?

• Commissions will not be listed on the MLS.

• Commissions will be paid by the government.

• Commissions will be listed on the MLS.

• Commissions will be higher for sellers.

What is the expected outcome of the new commission practices starting in July 2024?

• Increase in home prices.

• Decrease in home prices.

• Increase in agent commissions.

• No change in home prices.

Who will buyers sign contracts with under the new commission system?

• The government.

• Their own agents.

• The sellers.

• The National Association of Realtors.

What is the main goal of the changes in commission practices?

• To complicate the buying process.

• To reduce home prices.

• To make home buying more expensive.

• To increase agent commissions.