Realtor Association Agrees to $418M Settlement Over Commissions, Paving Way for Lower Fees

The National Association of Realtors (NAR) reached a $418 million settlement over claims it conspired to boost agents' commissions. This paves the way for lower commissions.

The settlement means the NAR will end rules that effectively required sellers to compensate a buyer's agent. This could lead to 25-50% lower commissions according to one analyst.

The settlement benefits online and discount real estate brokerages, as they can now access the MLS database without meeting past commission requirements.

Existing homeowners stand to benefit most from lower sales commissions, while first-time and less wealthy buyers could see negative impacts from less agent motivation.

The settlement adds to financial and administrative troubles the NAR has faced recently, including the resignation of its CEO and president.