Major lawsuit against realtors could have sweeping changes on industry

PROVIDENCE, R.I. (WLNE) — A landmark settlement in the real estate world could mean sweeping changes for how Americans buy and sell their homes.

Realtors are split on how if it’s a good thing, however.

The National Association of Realtors settled on a more than $400 million payout as part of a lawsuit that alleged the group artificially raised commissions for realtors.

One of the big changes coming with this is a change to who’s on the hook for an agent’s fee, which could now be the buyer.

“I think at the end of the day, this is going to be a net positive both for consumers and the real estate industry overall,” Esposito Realty Group Lead Agent Ben Esposito said. “I think what you’re going to find is that if the buyers are potentially responsible for that fee, they’re going to be a lot more discerning about the agent that they choose.”

The changes to fees could mean more competition among agents and a potential rise in quality across the profession.

“There’s a lot of real estate agents that are, you know, part-time or don’t do it professionally, and I think it’s going to be harder for those agents to continue to do business,” Esposito said. “Because now the buyers, if they are responsible for the payment, they’re going to want better service.”

It’ll be some time before these changes to the system become noticeable, and even then, it’s unlikely they fully flip the housing market on its head.

But Esposito said in the right market, it could make a real difference for people looking to buy a home.

“Right now, and for the past few years, we’ve been in an incredibly strong seller’s market,” he added. “If it’s a buyers’ market, and we have 20 to 30 homes on the market that a buyer can choose from, and 15 of those sellers are offering buyer-agent compensation and five aren’t, that’s going to drive buyers to those houses.”

For now, it’s a game of wait and see.