A Missouri jury found that the National Association of Realtors had conspired to inflate commissions for home sales in a class action suit that could upend how real estate transactions are conducted in the United States.
Plaintiffs in the class action lawsuit included sellers of more than 260,000 homes in Missouri, Kansas and Illinois between 2015 and 2022, who objected to the commissions they were obligated to pay buyers’ brokers. The damages award can be tripled under U.S. antitrust law to more than $5.3 billion.
“Today was a day of accountability,” said Michael Ketchmark, the lead lawyer for the plaintiffs.
NAR spokesperson Mantill Williams said the trade group plans to appeal and seek reduced damages.
Broker compensation in the United States has typically been about 5% to 6% of a home’s sales price, with about half paid to a buyer’s broker. The suit claimed this suppresses competition and that many home buyers are able to find homes online without the help of a real estate broker.
Re/Max and Anywhere Real Estate, whose brands include Century 21, Coldwell Banker and Corcoran, had been defendants but settled before trial, with Re/Max paying $55 million and Anywhere paying $83.5 million, without admitting liability.
The U.S. Department of Justice is separately asking a federal appeals court in Washington to let it revive an antitrust probe into the NAR’s practices.
