Settlement in US real estate case could lead to lower buying and selling costs

The real estate landscape in the US could be on the brink of a major shift following a settlement in a case against the National Association of Realtors (NAR) and real estate companies. The lawsuit alleged that sales commissions were artificially inflated, leading to higher costs for buyers and sellers.

The settlement, worth $418 million (£328 million), includes provisions that could lower commissions and make it easier for buyers to negotiate fees. This could ultimately result in reducing the overall cost of buying and selling homes in the US market.

With the average commission on a home sale currently standing at 6% of the sales price, which equates to over $25,000 on a typical US home, any reduction in fees could have a significant impact on consumers. The settlement is expected to increase competition in the housing market and provide more flexibility for buyers and sellers to negotiate lower transaction costs.

While NAR has agreed to the terms of the settlement, which is subject to final court approval, this could mark a major shift in the real estate industry. However, some experts remain cautious about whether these changes will actually lead to lower housing prices.

The settlement does not resolve other ongoing legal actions against real estate companies, indicating that more changes could be on the horizon for the industry. With similar legal challenges facing real estate agents in Canada, the global real estate market could be facing a period of significant change in the coming months.