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Fundamental Shift Coming in Real Estate Agent Compensation

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By: Ben Reeves

The National Association of Realtors (NAR) has been the subject of several recent lawsuits alleging anticompetitive conduct. In a nutshell, the allegations are that agents restrict the flow of information regarding homes for sale, and leverage that informational asymmetry to inflate agent commissions. After a nearly $2 billion judgement was entered against NAR (and others) in Missouri, things are certainly going to change in the industry. Here’s an article that explores the history of these issues: Realtors Partied, Spent Big and Lobbied Hard. Then It All Came Crashing Down.