The National Association of Realtors said Friday it will make changes to its commission rules to settle national claims that the requirements stifle competition, a move that could reduce costs for consumers.
The settlement, which still needs court approval, could represent a major change in the housing market.
Today, sellers typically pay a 5% to 6% commission when selling their home, half of which goes to the listing agent and half to the buyer's agent.
Under the current broker rule, listing agents must offer compensation to buyer agents in order to list homes on the Multiple Listing Services, or MLS.
This rule, according to lawsuits against brokers, reduced competition and kept commission rates artificially high.
Under the terms of the settlement, the brokers will ban agent compensation offers on the MLS and pay $418 million.
In a press release, the national trade group said it continues to deny any wrongdoing regarding its current commission rule.
