The $418 million settlement in the long-running lawsuit brought against the National Association of Realtors (NAR) has fostered breathless speculation about a future in which sellers’ agents will charge markedly lower than the 6 percent commissions that have long been customary in the real estate industry.
The NAR announced on Friday that it had come to an agreement in an appeal of the verdict handed down in a Missouri federal court on Oct. 31, 2023, in the case of Sitzer/Burnett v. NAR Commission. Though still subject to court approval, the terms of the settlement require the NAR to pay $418 million—considerably lower than the original minimum penalty of $1.79 billion—and will end the practice of charging 5–6 percent commissions.
