Americans will likely see a drastic drop in the cost of selling their homes after a landmark legal settlement will end the notorious commission system used by real estate agents.
The National Association of Realtors (NAR) agreed on Friday morning to pay $418 million in damages and to amend its controversial rules in order to settle a wave of threatening lawsuits.
Experts say the change could cut costs by 30 percent, or around $20,000 on the sale of a $1 million home.
As it stands, agents in the US make between 5 and 6 percent on the sale price of a home – far more than almost anywhere else in the world.
That’s because for decades they have relied on a controversial mechanism to keep their rates high and extract as much commission as possible from sellers.
I have always thought more highly of prostitutes than of real estate agents….at least whores are selling something they own!
I know an agent, who listed a property, and all they did was take photos and list it on zillow.
Then filled out some prefilled forms when an offer was made.
Agency gets a large cut of the fees.
It’s a racket.