{"id":3694,"date":"2024-01-19T09:58:04","date_gmt":"2024-01-19T14:58:04","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3694"},"modified":"2024-04-25T23:17:00","modified_gmt":"2024-04-26T03:17:00","slug":"now-they-want-a-new-trial-could-nar-ever-drop-its-clear-cooperation-policy","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/now-they-want-a-new-trial-could-nar-ever-drop-its-clear-cooperation-policy\/","title":{"rendered":"Now They Want a New Trial. Could NAR Ever Drop Its \u201cClear Cooperation\u201d Policy?"},"content":{"rendered":"\n
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There\u2019s a rule most people follow in the residential real estate world. You\u2019re likely familiar with it. The seller covers the agent fees for both sides of the deal. The seller\u2019s and the buyer\u2019s agents typically split 5% or 6% between the two.<\/p>\n\n\n\n

Of course, the home buyer ultimately pays for it all \u2014 as an ordinary part of the price of acquiring a home. Well, it\u2019s not so ordinary any more. The industry has now been sued over its fee-sharing practice.<\/p>\n\n\n\n

In late 2023, a Missouri jury issued its verdict in the Sitzer\/Burnett agent commission trial<\/a>. The jury determined that the industry owes sellers $1.8 billion for artificially keeping commissions high, through collusion and antitrust violations.<\/p>\n\n\n\n

This month, the National Association of REALTORS\u00ae called for a new trial.<\/p>\n\n\n\n\n\n\n\n

They\u2019re Putting Up a Formidable Fight\u2026<\/h2>\n\n\n\n

But the National Association of REALTORs\u00ae may need to accept that its \u201cMLS Clear Cooperation\u201d fee-sharing policy won\u2019t cut the mustard in the future of real estate.   <\/p>\n\n\n\n

Under NAR\u2019s rule, sellers\u2019 agents offer a payment to buyers\u2019 agents to be able to list a home through the multiple listing service (MLS).<\/p>\n\n\n\n

But Sitzer\/Burnett marked a major milestone for home sellers. The jury agreed with the sellers who said agent groups were essentially conspiring to keep their fees high. The sellers said the agents\u2019 groups were doing it through the key U.S. real estate listing system, where their knowledge and entrenched practices give them an edge over consumers who might prefer to negotiate those fees.<\/p>\n\n\n\n

Would ending NAR\u2019s current system be good or bad? Depends on whether you\u2019re for or against the way agent commissions are set.<\/p>\n\n\n\n

So let\u2019s take a quick look at the key points on each side.<\/p>\n\n\n\n

So, How Do They Defend Those 6% Commissions?<\/h2>\n\n\n\n

What\u2019s the industry\u2019s argument for those 5% or 6% agent commissions (depending on location) that get split between the seller\u2019s and buyer\u2019s agents? Here are a few arguments in support of the fee-sharing practice:<\/p>\n\n\n\n