On Friday, March 15th, a significant development occurred in the real estate landscape that may affect you as a home buyer or seller. The media reported a settlement in the class action lawsuit "Sitzer-Burnett," which alleged antitrust violations by the National Association of Realtors regarding real estate agent commission structures.

You can read more about the settlement here.

Following the plaintiffs' success in November 2023, the case was appealed, and on March 15th, a settlement agreement was reached, pending court approval. This agreement could bring fundamental changes to how real estate transactions are conducted, impacting both buyers and sellers like you.

It's essential to clarify some misconceptions:
- Real estate commissions are not disappearing, and Realtors are not becoming pro bono professionals.
- This settlement is not a solution to the housing crisis or guaranteed to make housing more affordable.

Assuming court approval, changes will take effect in July 2024:

Impact on Buyers:

- Before viewing a property, buyers will need to sign a contract with a Realtor.
- Buyers will be responsible for their Realtor's fees, negotiated upfront.
- Payment methods for Realtor fees may vary, potentially requiring more cash at closing.

Impact on Sellers:

- Sellers will only be responsible for the listing agent's fee, not the buyer's agent.
- Negotiations for the buyer's agent commission will occur separately, possibly involving the seller.
- Buyers may request sellers to cover their agent's fees or other concessions.

This overview highlights upcoming changes in the real estate industry. It's crucial to stay informed and separate facts from misinformation.

I'm here to guide you through these changes and provide expert advice. Feel free to reach out with any questions or concerns.

Thanks for reading.