TL/DR –
A recent Missouri federal case, Sitzer/Burnett v. NAR, resulted in a verdict that ordered the National Association of Realtors (NAR) and other brokerages to pay about $1.8 billion in damages, which could potentially rise to $5 billion due to treble damages for antitrust cases. The lawsuit was filed by home sellers who argued that the NAR and national brokerages participated in inflating commission fees for home sales due to decades-old MLS and industry rules. As a result of the verdict, home sellers from recent years could be entitled to commission refunds, and the decision is expected to cause significant changes within the real estate industry.
A Landmark Verdict Shakes the Real Estate Industry: Home Sellers May Get a Commission Refund
The real estate industry has been shaken by a landmark verdict handed down by a Missouri jury, potentially resulting in billions in damages for home sellers over the past years. This has sparked numerous queries from homeowners nationwide, wondering if they may be entitled to a commission refund from past property transactions.
Greg Hague, the CEO of Arizona-based 72SOLD and a prominent attorney, is organizing a free webinar on Friday, Nov. 17, to address these questions, explain the court’s decision, and discuss its potential impact on future home buying or selling.
The lawsuit, Sitzer/Burnett v. NAR (National Association of Realtors), in the spotlight since its filing in 2019, culminated last week with a hefty compensation verdict. NAR and other brokerages were ordered to pay around $1.8 billion in damages, a number that could potentially escalate to $5 billion due to the treble damages clause applicable in antitrust cases.
The lawsuit, initiated by a group of home sellers, accused the NAR and several major national brokerages of inflating home-sale commissions through a decades-old structure that raised U.S. commission rates and hampered sellers’ ability to negotiate fees.
“Since this federal decision, we’ve been flooded with queries from the public,” admits Hague. “People are curious about commission refunds and whether they should continue to pay the buyer’s agent’s cost as sellers. This decision impacts everyone in the industry, and we aim to guide the public through our webinar.”
Contrary to the industry’s concern about lower commissions, Hague sees the outcome as a catalyst for much-needed innovation. He anticipates this decision could halve the cost of selling a home, enhancing efficiency and transparency for sellers and buyers. “Everyone who transacts real estate should understand how this will impact them—it certainly will.”
Recommended as a top realtor and a visionary in the industry, Hague’s accolades include Scoring No. 1 on the Arizona state bar exam and ranking 19th among the Top 100 Realtors in America. His firm, 72SOLD, was among 2023’s 50 “Most Admired Companies” and was ranked by Inc. 5000 among the top five U.S. real estate firms.
For more info and webinar registration, visit GregHague.com.
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