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š Real Estateās Latest Craze
Class actions affecting real changeā¦ and those affected can seek recovery and changes going forward.
Class Action Connection
March 28, 2024 ā¢ Est. Read Time: 10 minutes
Good afternoon. These days, real estate seems to have a grip on news headlines and just about everywhere else in our daily lives. Whether youāre looking to buy your first place, a new apartment to rent, or finding that perfect forever home, itās pretty hard to watch the news or scroll IG or YouTube without someone telling you, āreal estate is the key to wealthā. Well, seismic shifts seem to be ahead as a $418 million settlement is shaking up the space (againā¦) and a main player in the process has come under fire. Letās dig in.
In Todayās Newsletter:
š” Commissions at risk: $418 million worth of settlements for the NAR.
šļø What else weāre checking out: Newsletter recs to round out the week.
šļø Case Docket: settlements ready for you to file: Visa Mastercard, Verizon Admin Fee, Chicken & Pork price fixing are all live ā file now before their gone!
š„” Thursday Takeaways: Our weekly list to help fuel your growth!
SETTLEMENT SPOTLIGHT
š Real Estateās Latest Craze
Source: The Simpsons via Giphy
Since most people donāt sell their house every day, the process can seem pretty unclear to the uninitiated. Commissions for the agents have always felt like a set price for doing business. Letās be honest, if you had a tricky situation, your agent can be a lifesaver (trust me here). However, this past week, the National Association of Realtors (NAR) just announced that it is paying a $418 million settlement and pledging to enact rule changes.
So What Happened?
The NAR just announced last week that they are settling this lawsuit for $418 million and pledging to enact rule changes. Why? Because in October, a jury in a Missouri federal court room delivered a verdict of $1.8 billion on the account that the NAR and associated brokerages were accountable for collusion - working to maintain inflated prices and keep commissions up.
The Backstory
U.S. Realtor commissions have ranged from 5% to 6% since the 1950s, usually split between seller and buyer agents, with the home seller on the hook for paying these commissions. While the NAR claims that commissions have always been negotiable, in reality this hasnāt always been clear to sellers & buyers due to long-standing norms and especially when listing their home on a multiple listing site (MLS).
The Changes
A few changes are happening. Going forward, the commissions will be ādecoupledā, where sellers and buyers will be responsible for their own agentās commissions. Additionally, the NAR will bar sellers from including comp details on MLSs, a long-standing marketing strategy (and included in buyers math).
What Does This Mean Going Forward?
For Home Sellers
š« No longer covering the entire commission for both buyer and seller agents.
š¤ Able to negotiate commission rather than just accept the standard 5-6%.
š Expecting a 30% slash in the $100B in annual commissions paid in the future.
For Home Buyers
š¤ Now given the opportunity to negotiate instead of automatically absorbing the typical 3% commission added to home price / closing costs.
ā Able to opt out of agent representation completely - more in line with the rest of the world (Non-U.S. buyer representation averages ~33% vs. U.S. ~87%)
For Home Builders
š Expected to experience a significant boon as the reduction in commissions alleviates the financial strain for builders covering agent commissions.
šļø Experts believe this will likely lead to more houses (something desperately needed) at slightly lower costs (hopefully š¤).
Whatās Next?
Weāre looking at plenty of time to file here, the deadline is May 9, 2025. But filing early is ALWAYS a good thing, which is why weāre working to get a new settlement page up and running ASAP!
Want More Detail?
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WEāVE GOT RECS
šļø What Else Weāre Checking Out
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WHAT ELSE IS GOING ON
šļø Case Docket
More cases that could be affecting you! Click on any of these below or check out our website for our full list of open settlements.
ROCKINā DOWN THE HIGHWAY (Open and filing claims!)
BUSINESS FILINGS:
š³ Visa & Mastercard ($5.54B settlement) Your biz may have paid excessive fees for accepting Visa or Mastercard swipesā¦
PERSONAL FILINGS:
šµ Verizon Wireless ($100M settlement) Verizon may have been charging customers extra āadmin feesā every monthā¦
š Buy Raw Chicken? ($181M settlement) You may have been overcharged by some of the biggest names in the chicken gameā¦
š„ Buy Raw Pork? ($75M settlement) Big Pork may have overcharged you for years by for those slices of crispy baconā¦
NOT QUITE RIPE FOR THE PICKINā (Not open for claims, yet)
PERSONAL FILINGS:
š©ļø Fly Recently? ($60M-so farā¦) American, Delta, Southwest and United may have overcharged you for flights over the years...
š Search in Incognito? (~$5B settlement) Google may have tracked yours (+ Mās of other Americans) data while you were browsing privately...
š ļø Sell Your House? ($208.5M settlement) This is what we just talked about above!
š„” THURSDAY TAKEAWAYS
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āāāā š FINE PRINT šØ āāāā
Weāre all trying our best to be smart people and make responsible choices here. Nothing in this newsletter is legal or financial advice and content is created for informational and educational purposes only. If you are looking for legal and/or financial advice, help yourself out and hire a professional. We appreciate you checking out our newsletter and look forward to bringing more exciting (and dollar filled) settlement opportunities to your inbox! š¤š¤š¤
DISCLAIMER: You do not have to use a third party like CAC and can always file a claim on your own. If you are a settlement class member, you must complete and submit a valid Claim Form in order to receive a payment. You may request a Claim Form by calling the Settlement Administrator or visiting their website for that particular case. Happy filing!
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