REALTORS® Lose 1.8 Billion

Many brokers around the country are reconsidering their membership in the National Association of REALTORS®. Since 2019 the association has received a judgment against them to the tune of 1.8 billion dollars with a chance to run up to 5.3 billion according to Federal Anti-Trust Law.

NAR Losses 1.8 Billion

The original lawsuit was filed in April 2019 by Joshua Sitzer and Amy Winger after real estate firm Keller Williams charged them a 5.5% commission to list their home. More than half of that fee went to the buyer’s agent under the NAR’s compensation rule. The Sitzer/Burnett suit alleges that the arrangement violates the federal Sherman Antitrust Act. This is just the first of many law suits to come and could possibly be the end of the NAR's domination in the U.S. real estate market.

The National Association of REALTORS® was founded as the National Association of Real Estate Exchanges on May 12, 1908 in Chicago. With 120 founding members, 19 Boards, and one state association, the National Association of Real Estate Exchanges' objective was "to unite the real estate men of America for the purpose of effectively exerting a combined influence upon matters affecting real estate interests."

As a licensed REALTOR®, this is greatly concerning. I don't see how we will ever be able to pay this money back without dramatically raising dues, cutting back member benefits, and decreasing spending. Brokers should be discussing this with their agents as I believe many do not realize the serious situation in which the REALTORS® are in. If every dime of the NAR's yearly revenue went to pay this judgment, it would take 14 years just to pay back. This will never happen and I fear this may be the end of an era. Well, it was fun while it lasted.

-Cheers

Grosh Commercial Real Estate Las Vegas