Facing accusations of violating the Sherman Antitrust Act, the National Association of Realtors and various brokerages have found themselves the focus of a class action lawsuit. What exactly is the issue? Well, it surrounds the idea of who exactly should compensate the real estate agent assisting a buyer in the transaction.
Let’s go back a century to understand how the real estate business model works. When someone wants to sell their home, they employ a real estate agent to find a willing and able buyer. The agent then networks with other agents to see if they have a potential buyer. In return for their participation in completing the transaction, the agent who had the employment contract with the seller shares a portion of their commission with the agent who brings the buyer to the deal.
Brian D. Koellish, a Realtor, is a military relocation professional. The Focus on Finance column is coordinated by Wright Legacy Group.