The Outcome of the NAR Lawsuit

The Outcome of the NAR Lawsuit: How It's Shaping the Future of Real Estate

News
July 22, 2024•1 min read

Introduction:

The real estate industry witnessed a seismic shift from 2019 to 2023, thanks to a landmark lawsuit against the National Association of Realtors (NAR). Let's explore the lawsuit's outcome and its profound impact on how homes are bought and sold.

The Lawsuit's Journey (2019-2023)

The lawsuit, Moehrl v. National Association of Realtors, initiated in 2019, challenged NAR's policies on commissions and multiple listing services (MLS). The core contention was the alleged violation of antitrust laws through practices like buyer broker commissions, which critics argued inflated fees and stifled competition.

Settlement (2023)

After years of legal wrangling, the NAR settled the lawsuit, agreeing to transformative changes:

  • Transparency: Agents must disclose commission rates upfront, providing buyers and sellers with a clearer understanding of costs.

  • Commission Flexibility: Sellers can negotiate commission rates for buyer's agents, fostering competitive pricing among real estate professionals.

  • MLS Access: MLS listings are now available to non-NAR member agents, expanding property options and competition.

  • Anti-Retaliation Policy: Agents offering rebates or discounts are protected from retaliation.

Changing Commission Structures

With transparency and flexibility, buyers and sellers gained more control over commission fees. Alternative pricing models like flat fees and tiered commissions emerged, offering cost-effective options.

Rise of Tech-Driven Brokerages

Tech-driven brokerages like Redfin and Compass gained ground, leveraging innovative platforms and lower fees. These firms, powered by data analytics, streamlined processes and challenged traditional models.

Greater Competition and Choice

The lawsuit spurred competition, benefiting consumers. More agents entered the market, driving improvements in service quality, efficiency, and innovation.

Conclusion: Embracing Change (2019-2023)

The NAR lawsuit reshaped real estate, promoting transparency, competition, and choice. In this era of transformation, staying informed and adaptable is key. By leveraging technology, embracing new models, and prioritizing consumer needs, the industry can thrive in this evolving landscape.


Moe Ameen is a real estate investor, software creator, and general over-caffeinated human who somehow made automation cool (or at least tolerable). He built a cutting-edge real estate CRM because manually chasing leads is so last century. Specializing in creative finance, deal structuring, and making things unnecessarily efficient, he helps investors close more deals while doing less actual work. When he's not automating the real estate world, he’s probably pretending to work while staring at spreadsheets or convincing himself that buying another domain name is a good idea.

Moe Ameen | BILT CRM

Moe Ameen is a real estate investor, software creator, and general over-caffeinated human who somehow made automation cool (or at least tolerable). He built a cutting-edge real estate CRM because manually chasing leads is so last century. Specializing in creative finance, deal structuring, and making things unnecessarily efficient, he helps investors close more deals while doing less actual work. When he's not automating the real estate world, he’s probably pretending to work while staring at spreadsheets or convincing himself that buying another domain name is a good idea.

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