|A battle between the real-estate industry and consumer advocates ended with a decision that sent shockwaves through the market.
A jury determined the National Association of Realtors and brokerages were using the rules of the multiple-listings services, where the vast majority of homes are advertised for sale, to inflate agent commissions paid by sellers. The ruling meant roughly $1.8 billion was awarded to the plaintiffs.
Stephen Brobeck, a senior fellow at the Consumer Federation of America, called it “the biggest watershed moment” for real estate in his 30 years covering the industry.
“For nearly a century, the industry has been able to maintain high and uniform commission rates,” Brobeck told Insider. “This decision indicates that it’s going to be much more difficult for them to do that in the future.”
More on the future of the real-estate industry.