Realtor association agrees to lower commissions, NY Times reports

The National Association of Realtors has agreed to settle a series of lawsuits by paying $418M in damages and by eliminating its rules on commissions, Debra Kamin of New York Times reports, citing a copy the paper obtained of the agreement. The deal, which lawyers anticipate will be filed within weeks and still needs a federal court’s approval, would end a multitude of legal claims from home sellers who argued that the rules forced them to pay excessive fees, reports the Times. The paper says that without the traditional 6% sales commission rate guaranteed, real estate agents will now most likely have to lower their commissions as they compete for business. Economists estimate commissions could now be reduced by 30%, driving down home prices across the board, the Times says. Company in the home realtor space include: Redfin (RDFN), Zillow (Z), Lemonade (LMND), Opendoor Technologies (OPEN), Re/Max Holdings (RMAX) and Compass (COMP).