What’s the NAR® Lawsuit, and How Does it Affect Home Buyers and Sellers? 

If you have ever tried selling or buying a home, you probably experienced the complexity of the housing market. From unexpected clauses to growing costs, finding and moving to a new home is a tricky affair—even if you have the best Montgomery moving companies waiting to make the last step of the process stress-free. 

Amidst the chaos, in March of this year, the National Association of Realtors® settled a historical lawsuit against them. This development can potentially change how real estate agents commission their clients and impact the entire moving industry.  

Here´s what you need to know about it. 

Frustrated Home Buyer Before Finding the Best Montgomery Moving Companies

How Do Real Estate Fees Work? 

The National Association of Realtors® (NAR) was founded in 1908 to empower realtors and help guarantee everyone’s access to property. To this end, the NAR® established rules for home buying and selling in America.  

The housing market has experienced ups and downs over the years. Meanwhile, commission rates for real estate agents have remained stable, rounding 5% to 6% of a home’s selling price. 

This sum accounted for both the seller’s realtor fee and the buyer’s, who can get up to 2.83% in commission fees. Needless to say, sellers weren’t very happy with that. 

How Did the NAR® Lawsuit Happen? 

In 2019, nearly 500,000 property owners in Missouri filed a lawsuit against NAR® and other broker companies, saying the commission model was unjust and caused financial harm to sellers and buyers. 

They claimed that fees forced sellers to raise their list prices, which harmed buyers and increased the cost of homes across the country.  

Finally, in October 2023, a federal jury found the National Association of Realtors® (NAR) guilty of conspiring to inflate brokerage commissions. Realtors and brokers were ordered to pay nearly $1.8 billion in damages.  

And in March of this year, NAR® agreed to settle for $418 million. 

What Does the NAR® Settlement Mean for Homeowners, Buyers, and Renters? 

No More Established Fees 

NAR® agreed to dissolve all commission requirements, and it’s not forbidden to create guidelines that would permit seller’s agents to determine a buyer’s agent’s compensation.  

This is great news for homeowners looking to sell, as they will no longer have to pay the agent representing their buyer. Additionally, it will deter buyer agents from guiding clients toward more expensive properties to earn a higher commission. 

Decrease in Commissions for Sellers 

By removing the fee guarantee, real estate agents will be forced to compete more for clients. Experts predict this will lead to lower commissions—possibly as much as a 30% cut.  

This could result in lower costs for home sellers and buyers nationwide. 

New Commissions for Buyers? 

The biggest downside to this lawsuit is the added weight on the buyer’s wallet. In addition to a heavy down payment, closing cost fees, and hiring a professional moving solution, they may have to pay their agents a flat commission fee upfront. 

First-time buyers may feel the greatest impact of this. 

How Did the NAR Lawsuit Affect Montgomery Moving Companies

Learn More About Housing Market Trends from Montgomery Moving Companies  

The housing market has been at a stale point these past few years, first due to the pandemic and then due to inflation and higher costs of living. Only time will tell if this decision benefited home sellers and buyers by lowering house prices or resulted in added costs for first-time buyers. 

If you’ve just bought a new property and are looking to move, give us a call! We’d love to hear your opinion on the matter and find out if we can help you out with your move.


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