The National Association. of Realtors said Friday that it will make changes to its commission rules to resolve national accusations that the requirements stifled competition, a move that can reduce costs for consumers.
The deal, which still needs to receive court approval, could mark a major shift in the real estate market.
Today, sellers typically pay a 5% to 6% commission when they sell their homes, with half of that commission going to the listing agent and the other half to the buyer's agent.
Under an existing real estate agent rule, listing agents must make a compensation offer to buyer agents in order to list homes on multiple listing services, or MLS.
This rule, according to lawsuits filed against real estate agents, reduced competition and kept commission rates artificially high.
Under the terms of the agreement, real estate agents would ban offers of compensation to agents in the MLS and pay $418 million.
In a news release, the national trade group said it continues to deny any wrongdoing in relation to its current commission rule.
