Real Estate Brokerage

REAL ESTATE BROKERAGE CLASS ACTION LAWSUITS

HOW TO EFFECTIVELY SEPARATE (“DECOUPLE”) LISTING AND BUYER BROKER COMMISSIONS

In his September 2023 report, Stephen Brobeck of the Consumer Federation of America examines pivotal class action settlements by real estate leaders Anywhere and RE/MAX, spotlighting the urgent need to “decouple” listing and buyer broker commissions. These lawsuits challenge the norm of seller-paid buyer broker compensation, a practice that critics argue maintains high, uniform commission rates. While the settlements hint at potential industry reform, true change requires a fundamental shift in commission negotiations and financing, with suggested strategies like revising federal mortgage regulations. However, current efforts, such as those by the Northwest MLS, show minimal impact, indicating a tough road ahead to real price competition and consumer savings in the real estate market.