Jill Comments on the Recent National Association of Relators (NAR) Lawsuit


April 12, 2024
- In a groundbreaking move, the National Association of Realtors (NAR) has reached a settlement in lawsuits alleging inflated costs for home sellers, leading to significant changes in its commission policies. The agreement includes a $418 million compensation fund for affected sellers and major revisions to the traditional real estate commission structure.

The lawsuits, brought by home sellers against the NAR and several major brokerages, challenged rules governing homes listed for sale on NAR-affiliated Multiple Listing Services (MLS). Under the terms of the settlement, the NAR will no longer require a broker advertising a home on the MLS to offer any upfront compensation to a buyer's agent. This change allows individual sellers to negotiate compensation with buyer's agents outside of the MLS platforms, with full disclosure required by the seller's broker.

Jill, an award-winning Real Estate Agent in Boulder, Colorado, with almost two decades of experience in the industry, and a housing scholar at the University of Colorado, commented on the impact of the litigation: "A key component of this litigation impacts how buyers' agents are paid. While commissions have always been negotiable, sellers have often paid both the listing agent's commission and the buyer's agent's commission. Moving forward, more sellers may choose not to pay the buyer's agent's commission, but it could make their home less attractive to potential buyers." 

"Offering a buyer's agent commission could be one more way to make your home stand out," added Jill. "Sellers pay a good deal of money outside of commission to make their home attractive to buyers, such as staging, painting, cleaning, repairs, upgrades, etc. Offering a buyer's agent commission is one more way to make your home stand out. With this new litigation, I can see some sellers wanting to actually offer MORE than the 'usual' buyer's agent commission." 

Jill urges real estate professionals not to lose sight of their value amidst the headlines. "There is an excellent academic study, published in 2021 in the Journal of Housing Research, that finds that FSBO homes sell for significantly lower prices than comparable homes sold by agents, even after accounting for the commission rate. In Los Angeles County, FSBO homes sell for 7.4% to 8.4% less, while in Clark County, they sell for 7.6% to 8.8% less."

Related Blogs

Stay up to date on the latest trends in real estate.

Institutional Investors and Second Homes in Boulder, Colorado

Jill Grano  |  June 13, 2024

First of its kind study on changing patterns of ownership in Boulder, CO

Real Estate Professional Jill Grano Comments on the Recent Lawsuits Against the National Association of Realtors (NAR)

Jill Grano  |  April 19, 2024

A seasoned professional and knowledgeable housing academic, Grano explains what the settlement means for home prices across the industry.

Jill Grano Publishes Comprehensive Guide on North Boulder Real Estate

Jill Grano  |  April 17, 2024

The real estate professional made sure to showcase Wonderland Lake in the newest resource on her website. Visitors can check it out to learn all about buying in North … Read more

Jill Comments on the Recent National Association of Relators (NAR) Lawsuit

Jill Grano  |  April 12, 2024

New Developments in Boulder

Jill Grano  |  February 29, 2024

As you drive around town you'll notice many new developments in Boulder. This post outlines some of the most prominent.

Boulder's Short Term Rental License Rules

Jill Grano  |  February 16, 2024

Boulder Neighborhood Guide

Jill Grano  |  February 4, 2024

Jill's custom Boulder Neighborhood Guide will help you to get to know each neighborhood in the City of Boulder

What's up with Occupancy Limits in the City of Boulder?

Jill Grano  |  January 31, 2024

This hot topic is up for discussion again, this time prompted by the Polis Administration via the State Legislature.

Unpacking Boulder's New ADU Construction Rules

Jill Grano  |  January 30, 2024

Discover the intricacies of Boulder's newly implemented rules around Accessory Dwelling Units (ADUs) in my latest blog post.

Work With Jill

With almost two decades of housing and real estate experience in professional, political, and academic settings, Jill brings a level of knowledge and expertise that is rare in the industry. She is committed to providing exceptional customer service and delivering results that exceed clients' expectations.