From the NY Times, Justice Department Says It Will Reopen Inquiry Into Realtor Trade Group...
"On Friday, the U.S. Court of Appeals for the District of Columbia made a ruling that opens the door for a renewed investigation into the National Association of Realtors."
The main points of the article are:
1. The U.S. Department of Justice is reopening an antitrust investigation into the National Association of Realtors (NAR).
2. The decision comes after a federal appeals court overturned a lower court ruling that had previously quashed the investigation.
3. The inquiry will focus on whether NAR's rules and practices inflate the cost of selling a home.
4. This development follows NAR's recent agreement to a $418 million settlement in a separate lawsuit alleging antitrust violations and price-fixing.
5. Real estate commissions in the U.S. are significantly higher than in other developed countries, typically ranging from 5-6% of the home's sale price.
6. The DOJ suggests that these high commissions indicate uncertainty among borrowers about their future ability to refinance.
7. The reopening of the investigation signifies increased scrutiny of the real estate industry's practices and the potential need for more regulation to ensure fair competition.
8. The high commissions have been a source of frustration for many homebuyers and sellers who believe the fees do not accurately reflect the work performed by realtors.
I grabbed these comments about agent commissions from reddit. Here is my take:
The comments section is a real mixed bag of opinions on real estate commissions and the NAR. A lot of people are clearly fed up with how things are, saying commissions are ridiculously high and don't match the actual work agents do. Some folks even pointed out the irony that selling a $400,000 home takes the same effort as a $2 million one, making the percentage-based fees seem pretty unfair.
There's a strong call for more regulation in the industry, with some even suggesting the NAR is basically a monopoly and should be broken up. Others argue that commissions aren't the only reason housing is so expensive – corporate buyers and foreign investors play a part too.
Realtors chimed in as well, defending their profession and emphasizing that many clients need a lot of hand-holding throughout the process. They reminded us that commissions are negotiable and encouraged folks to interview potential agents and talk about fees upfront.
Interestingly, a few people drew comparisons to other industries like healthcare, education, and legal services, where costs are also sky-high in the U.S. compared to other countries.
All in all, there's a pretty widespread feeling that the current commission structure is broken. Most seem to agree that more transparency and regulation are needed to make things fair for both buyers and sellers.
