The report alleges that, typically, if a seller complained to a traditional agent that a low-fee agent was willing to charge only 1% ($9,000) to sell a $900,000 home, the traditional agent would argue that the low-fee agent has to skimp on the quantity or quality of services being offering. According to Nadel, this alleged steering remains a problem, and he argues that the industry has used this to protect many billions/year in excess fees against effective price competition.
In late December, the DOJ filed a statement of interest in the Davis homebuyer commission lawsuit, which was filed in May 2024 against Howard Hanna Real Estate Services. In the filing, which was signed by Assistant Attorney General Gail Slater, the DOJ urged the court to take a closer look at agent commissions, arguing that they are still possibly inflated due to unreasonable trade group rules that the department feels are inherently unlawful.
This as-told-to essay is based on conversations with Vicki Lynn, 67, a physical therapist assistant who relocated from California to Florida and used AI-powered platform Homa to draw up her contract without the help of an agent. Homa charges a flat rate of $1,995 for transactions with a selling agent. The conversation has been edited for length and clarity. I like being a part of new ideas and more innovative ways of doing things.
Today, there are several ways an agent's compensation can be structured, depending on what's agreed to in writing: Seller-paid commission: The seller may choose to pay their listing agent's commission and may also offer compensation to the buyer's agent, but this must be clearly disclosed and documented in the listing agreement. Buyer-paid commission: The buyer may agree to pay their agent directly, either as part of their closing costs or through a separate buyer-broker agreement.
According to the order, the court finds the settlements fair, reasonable, and adequate, and that they were negotiated at arm's-length by experienced counsel acting in good faith, including in several cases, mediation with a nationally recognized and highly experienced mediator. The order also notes that there has been adequate opportunity for discovery for experienced counsel to evaluate the claims and risks at this stage of the litigation, and that the class representatives have adequately represented the classes.
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
