National Association of Realtors (NAR) Lawsuits
Positive impact on SnapFlatFee.com™, our business model, and our customers

You may have heard about the lawsuit involving the National Association of Realtors and its potential impact on the real estate industry, particularly on the traditional brokerage business model. Here, I’ll explain in simple terms how this will affect commission structures, focusing on the advantages SnapFlatFee.com™ offers over traditional brokerages.

For years, the real estate industry has operated on a standard model:
Listing Agents charge sellers a typical 5 or 6% commission. Up to now, Listing Agents have been required to offer a portion of that commission (usually half) to all other Realtors, through the Multiple Listing Service (MLS). This ensured that when a Buyer’s Agent found a property for their client (the Buyer), they’d be compensated by the seller via the Listing Agent.

However, concerns arose among the public regarding this structure, leading to legal action against the National Association of Realtors (NAR) and its affiliates. Many believed this system artificially inflated prices for consumers, prompting the lawsuit and the involvement of the U.S. Department of Justice (DOJ).
Following the trial, the jury issued a verdict against the National Association of Realtors (NAR). Recently, NAR submitted a proposed settlement agreement. If sanctioned, this agreement will institute alterations in the manner in which commissions for Buyer’s agents are both offered and remunerated.

Under the new agreement, Listing Agents will no longer be allowed to offer a commission to Buyer’s Agents through the MLS. They can still offer compensation but onlyu through direct negotiation.

 Sellers already know about this and starting to insist on paying ONLY a single commission (around 3%). This makes it very challenging for Listing Agents to offer competitive commissions to Buyer’s Agents.
 
In this new structure, Buyer’s Agents will need to charge their compensation to their clients (the buyer), a practice unheard of until now. This transition may pose challenges for the market, particularly for Buyers, in terms of adaptation. This commission charged to the buyer becomes an additional closing cost and an additional financial burden on the buyer
 
However, SnapFlatFee.com™ customers are already familiar with this commission structure. Our model, backed by more than 2.3 Billion in sales, more than 22 years of experience, and exceptional customer service, is now even more efficient, attractive, and effective.
 
Our business model, by not charging the traditional Listing-Side commission, enables sellers to offer competitive commissions to Buyer’s Agents, which traditional brokerages can’t match anymore.
With the new commission structure, Buyer’s Agents will likely push harder to sell SnapFlatFee.com™ listed properties due to the offered compensation.
 
In a market where change is challenging, SnapFlatFee.com™ stands out as the solution. List your property with us and experience the future of real estate while saving money.
We’ll keep you updated.
 
Note: The proposed settlement agreement presented by NAR has not been ratified by the Court.  If ratified, it will not take effect until mid-July 2024.their