Could National Association of Realtors lawsuit settlement lower home prices?
MINNEAPOLIS — When a "For Sale" sign goes out in the yard, the seller typically ends up paying 5-6% in commissions, which gets split between the seller's real estate agent and the buyer's.
But a lawsuit settlement last week — if a judge approves it — means sellers will no longer have to pay the buyer's agent.
"For sellers, you're going to negotiate with your agent to come up with a fee that is reasonable for you. For buyers, it's a game changer. You may decide you don't even want a realtor," CBS News Business analyst Jill Schlesinger said.
In that lawsuit, the National Association of Realtors was found liable for conspiring to keep agent commissions artificially high.
READ MORE: National Association of Realtors to cut commissions to settle lawsuits. Here's the financial impact.
So lower fees would save home sellers money. But what about if you're buying?
Experts say home prices could come down since commissions are often baked into the price.
Others are skeptical of the impact — saying if the sellers aren't paying the buyer's agents, the buyer would still have to.
Theoretically, though, they'd be able to shop around for lower realtor fees in a more competitive market.
As for the brokers, Americans pay about $100 billion in commissions each year — one of the highest totals in the world.
If that number falls — some analysts estimate by up to 30% — it could mean agents leaving the industry altogether.
The president of the National Association of Realtors said in a statement, "While the settlement comes at a significant cost, we believe the benefits it will provide to our industry are worth that cost."
The National Association of Realtors will pay more than $400 million in damages as part of the settlement.