That’s the typical commission Realtors collect on the sale of a $424,000 home, the median sales price in Cobb County.
That payout, however, could soon change.
Last October, a federal jury sided with plaintiffs in a class-action lawsuit against the National Association of Realtors (NAR) and several of the country’s large brokerage firms. The plaintiffs alleged the real estate industry conspired to maintain the standard commission at 5-6%, to the detriment of home sellers.
In March, the NAR settled the suit, agreeing to pay $418 million and change several of its rules.
Experts and media reports have called it a landmark case which could shake up the real estate industry, possibly leading to lower commissions and fewer Realtors.
Cobb real estate agents who spoke to the MDJ, however, were skeptical that the suit, and more than a dozen copycat suits, would cause major shifts in Georgia.
They believe most consumers will still use Realtors, that prices will keep climbing, and that established agents will adjust.
“There’s going to be a lot of chaos and a lot of commotion, probably for the first year, and then everything’s going to settle back down,” said Chris Evans, who co-owns Sellect Realty with his wife, Celine Evans.
Darren Hayunga, a housing economist at the University of Georgia, said the settlement raises questions about who will pay commissions, and how much agents will be able to charge. But it’s too early to have definitive answers.
“We have yet to see how the market responds,” Hayunga said.
The complaint against Realtors
The original suit alleged a conspiracy between the NAR and brokerages which inflated real estate commissions.
Traditionally, the seller pays a 5-6% commission on the sale price, which is split between the seller’s agent and the buyer’s agent. That arrangement has been the norm in the U.S. for more than…
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