NAR settlement at 1 Year: The change that wasn't and the crack in the wall

"Portals, brokers and even trusted voices like Dave Ramsey, take their cut. A closed deal can be worth up to 40% of an agent's commission, or $10,000$12,000 on a $1 million home, just for an introduction. Zillow thrives on free brand traffic, while everyone else pays $2,000$3,000 per customer to compete. That moat is why new ideas never pencil. Why there's no price competition"

"Consumers never see the effect of those fees. According to NAR, three out of four buyers hire the very first agent they meet. Portals reinforce this dynamic by funneling each shopper to a single preferred choice. There's no click-to-compare, no real way to weigh options side by side. With customers valued at up to $12K, there is no incentive for anyone in the chain to lower commissions. The funnel protects the tolls. When there's only one lane, the driver pays whatever the operator sets."

"A year after the NAR settlement, commissions were supposed to fall. Consumers were supposed to have choices. Agents were supposed to negotiate more openly. On paper, it all looked promising. In practice? Almost nothing changed. Commissions actually rose from a year earlier. The silence in the industry isn't confusion, it's relief. Margins didn't move. The power structure that benefits a select few remained untouched."

Commissions rose rather than fell after the NAR settlement, leaving margins and the existing power structure intact. Referral fees act as a tollbooth that sets customer value and raise acquisition costs across the industry. Portals, brokers and influential endorsers capture meaningful shares of deals; a closed transaction can consume up to 40% of an agent's commission or $10,000–$12,000 on a $1 million sale. Zillow benefits from free brand traffic while competitors pay thousands per lead. Three out of four buyers hire the first agent they meet, portals funnel buyers to single choices, and high customer valuations remove incentives to lower commissions. NAR dues fund a large lobbying war chest that benefits a small group despite most members closing no deals.

Read at www.housingwire.com