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National Association of Realtors to cut commissions to settle lawsuits. Here’s the financial impact.

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The state of the real estate market for spring 2024


The state of the real estate market for spring 2024

06:01

It could soon cost homeowners a lot less to sell their homes after a real estate trade group agreed to slash commissions to settle lawsuits against it. 

The National Association of Realtors (NAR) agreed on Friday to pay $418 million over roughly four years to resolve all claims against the group by home sellers related to broker commissions. The agreement must still be approved by a court.

Almost 9 in 10 home sales are handled by real estate agents affiliated with NAR. The organization, the country’s largest trade association, requires home sellers to offer a non-negotiable commission, typically 6%, before listing homes on its property database, known as the Multiple Listing Service, or MLS. 

The lawsuits argued that the structure harms competition and leads to higher prices.

“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible,” NAR interim CEO Nykia Wright said in a statement Friday. “This settlement achieves both of those goals,” 

How will this impact real estate commissions?

Notably, the landmark deal will slash realtors’ standard 6% sales commission fee, potentially leading to significant savings for homeowners. The group had been found liable for inflating agent compensation. 

Fees could be slashed by up to 30%, the New York Times reported, citing economists.

That could impact earnings for 1.6 million real estate agents, who could see their $100 billion annual commission pool shrink by about one-third, analysts with Keefe, Bruyette & Woods wrote in a report last year about the pending litigation.

Standard commission rates in the U.S. are among the highest in the world. Real estate agents make money by pocketing a percentage of a home’s sale price.

Could homeowners save money?

Most likely, because homeowners are generally on the hook to pay the 6% commission when they sell their property, although sometimes the fee is split between the buyer and seller.

For instance, a homeowner selling a $1 million property would spend up to to $60,000 on agent fees. If commissions are reduced by 30%, that same homeowner would pay a commission of about $42,000.

How will it impact the housing market?

Housing experts expect the deal to shake up the housing market and drive down home prices across the board.



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Reporters’ notebook: A reflection on our return to Butler 84 days later

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It was hard to miss the massive American flag towering over the Butler Farm Show ground on July 13 as it waved over the rally site where former President Donald Trump was set to speak, just days before a crucial running mate selection and the Republican National Convention.

On July 13, the two of us, who had been tag-teaming coverage of Trump’s third run for president for over a year, went to what we thought would be a typical Trump rally in an open field in a Pittsburgh suburb, a crucial electoral area in a crucial battleground state. It ended with a gunman trying to take Trump’s life, and the death of a fireman, Corey Comparatore

We stood front and center in the press area at 6 p.m. and Trump took the stage (an hour late, as can be the case) and knew right away that something wasn’t right when what sounded like firecrackers went off to our left. That’s where shooter Thomas Crooks had climbed up onto an unprotected building just outside of the security perimeter and fired multiple shots.

A hydraulic lift that held up a massive stack of speakers was struck, sending smoke shooting out and the speakers slowly fell towards the ground, and as we took cover (ground twice), all we could think was to pull out our phones and get to work. Olivia recorded the sounds of panicked journalists and attendees alike huddled along the press riser and bicycle racks separating us, the shrieks of scared children, and, realized only upon listening many times since, the sound of those around Corey Comperatore yelling for assistance.

Jake spoke with emergency room Dr. James Sweetland, who ran to help Comperatore, and said that he heard the gunshots and went to assist, finding Comperatore “jammed between the benches” before attempting to save his life.

We both stood in shock as the crowd turned on us in the moments after Trump’s motorcade sped out of Butler, with one man yelling “This is your fault!”

What was to be a typical Trump rally wasn’t so typical anymore.

Eighty-four days later Trump returned, and so did the two of us, taking the same route from downtown Pittsburgh, parking in the same location, and enduring a similar heat with no shade in the press pen alongside fellow reporters who, just like us and the former president, chose to return and confront our trauma.

The stage was set up in the same location, with that same American flag looming over Trump and the crowd behind him on that day. 

But for everything that was the same that day, there were striking differences. The building where the gunman had climbed up, crawled across, and ultimately fired fatal shots, was completely obstructed from the view of the crowd by tractor trailers. Several teams of snipers were stationed throughout the rally site. It was perhaps the largest crowd we have seen thus far at a Trump rally. 

And we are not the same people. Witnessing the events of July 13 took away our feeling of safety while doing our jobs, and the effects of that continue to impact us. There was a moment of shock at one point, when the speaker on stage paused as the crowd shouted “medic” for a woman who fainted. We were frozen in fear hearing the same words that were shouted in the seconds after Trump’s assassination attempt, as people were shouting for a medic to take care of Comperatore. 

But like July 13, we had to go to work. Like those in the crowd of tens of thousands that chose to return, there was a sense of unfinished business on this fairground. We had continued on to Milwaukeee and the Republican National Convention to cover Trump’s first public appearance since Butler, but we knew that we had to come back here, no matter how painful it was to land back in Pittsburgh, head north on Route 79 and pull off at the Butler Farm Show, and finish the job: for the two of us, for CBS News, for the country. 

Unlike other speakers on the stage Saturday who championed Trump’s words of “fight, fight, fight,” Sweetland went out of his way to mention he is a former Democrat and pleaded with the crowd to reach out and find five Democrats with whom they could find commonality. 

“Democrats are like teenagers,” Sweetland said. “You think they aren’t listening, but they are.” 

Eight-four days later, the entire race has changed, and so have we. 



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Jewish communities on high alert ahead of one-year mark of Oct. 7

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Jewish communities on high alert ahead of one-year mark of Oct. 7 – CBS News


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Ahead of the anniversary of the Oct. 7 Hamas attack, Temple Beth Abraham in Oakland, California, has increased security and added additional support from the city’s police department. Itay Hod reports.

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Recalling the Oct. 7 massacre nearly one year on

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Recalling the Oct. 7 massacre nearly one year on – CBS News


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For all the turmoil, suffering and heartbreaking loss of human life that has unfolded since, the Oct. 7 massacre nearly one year ago is when it began, when heavily armed Hamas gunmen slaughtered about 1,200 people in Israel. Charlie D’Agata, who has reported extensively on the attack and the war in Gaza that followed, recalls the massacre and the escalating regional conflict.

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