Two lawsuits seeking billions of dollars in damages have been filed, alleging that real estate commission rules are a conspiracy designed to keep costs hig

Two lawsuits seeking billions of dollars in damages have been filed, alleging that real estate commission rules are a conspiracy designed to keep costs high. Currently, the sellers are required to pay a commission to their agents, which usually ranges from 5% to 6% of the home's sale price. This commission is then shared between the sellers' and buyers' representatives. However, the plaintiffs in the two cases argue that buyers have little motivation to negotiate with their agents, and sellers are afraid that reducing commissions will discourage buyers' agents from showing their clients their homes. On the other hand, the National Association of Realtors, who are the named defendants in both cases, argue that the current system helps first-time home buyers and those with limited means by avoiding a large upfront cost. They also claim that buyers who do not have agents may be at a disadvantage. In court documents, NAR said that sellers' agents pay commissions to buyers' agents to attract more interest in their properties.

By Anita Johnson-Brown

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