The law of unintended consequences is about to hit the real estate industry. And no one is likely to suffer its effects worse than low-income homebuyers.
A nationwide antitrust settlement between the National Association of Realtors and groups of homesellers just went into effect on August 17. The settlement, originally reached in federal court on April 24, will prompt buyers to negotiate a commission independently with their agent instead of both agents splitting a seller-paid commission, which typically averages just over 5% of a home’s purchase price. While the new rules may be intended to serve homebuyers well by causing agents to compete harder on price, no group stands to lose more than low-income and first-time buyers, which frequently include communities of color, non-English speakers, and veterans. … Continue reading “Underrepresented Homebuyers Need More Protections, Not Less”
