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The Journal.

A Case of Conspiracy in Real Estate

The Journal.

The Wall Street Journal

Business News, News, Daily News

4.25.8K Ratings

🗓️ 6 November 2023

⏱️ 15 minutes

🧾️ Download transcript

Summary

Home buyers and sellers face the prospect of major changes to the ways they pay their real-estate agents, following a historic verdict against the National Association of Realtors and large residential brokerages. WSJ’s Laura Kusisto explains the stakes. Further Reading: -The Way You Pay to Buy or Sell a Home Is About to Change -Jury Finds Realtors Conspired to Keep Commissions High -Real-Estate Commissions Could Be the Next Fee on the Chopping Block Further Listening: -Homeowners Don’t Want to Sell. So Builders Are Cashing In. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Laura, have you ever sold a house?

0:05.0

I have ever sold a house.

0:08.0

I have never sold a house I have bought twice,

0:11.0

and you know, it's like a funny thing actually I have no idea how much my

0:16.2

agent got paid. In the US when someone decides to buy or sell a house they typically pay a real estate agent to get the

0:24.6

job done.

0:26.0

Here's our colleague Laura Kisto.

0:28.3

So I decide to sell my home.

0:30.0

And I go out and I find an agent.

0:32.2

And I'll talk to the agent.

0:33.5

And one of the things, one of the first conversations

0:35.6

that we'll have is about the commission.

0:38.0

And what is it going to be and what are we going to offer

0:40.2

to the buyer's agent?

0:42.0

Laura says that those commissions are often one of the more nebulous parts of a home sale.

0:47.6

This is sort of an important thing to understand, that I as a seller, in effect, she's sort of a chain of different people, but I in effect as a seller in effect to sort of a chain of different people but I in effect as a

0:54.5

seller when I sell my home and the one who pays the buyer's agent. For a long time

0:59.7

this is how many real estate transactions have played out.

1:03.3

Critics have said that it's a system that lacks transparency

1:06.3

and keeps home prices high.

1:08.4

And now, a historic verdict in a federal class action lawsuit could upend how it all works.

1:15.0

A bombshell court ruling in the real estate industry could affect those who are buying or selling a home.

...

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