"Residential Real Estate Compensation Changing After $1.8B Verdict and NAR Settlement."
In an article published on March 25, 2024, in Daily Business Review, Aaron Cohn discusses the impact of potential changes to compensation in the real estate market after the NAR settlement.
“Buyers’ brokers need to start crafting client contracts and implementing a practice of having those contracts negotiated and signed before representation. They will not be able to offer their services as ‘free’,” says Cohn. “Inevitably, it seems that the commission structure will be revamped into a more varied and competitive marketplace. Perhaps it will resemble commercial real estate, where the adversary commission rule never existed. As economists like to point out, when the marketplace for services becomes more competitive, prices—in this case commissions—tend to decline.”
Subscribers may read the full article here.