Quintessential Mortgage Group, LLC
NMLS # 979266

Landmark Lawsuit Marks Possible Change For the Florida Real Estate Market

January 28th, 2024

A recent antitrust court case in Missouri has the potential to bring significant change to the conventional 6% commission paid to real estate brokers, as well as the party responsible for covering this fee.

Callen Jones, a Florida-based real estate agent associated with Jones Home Team Inclusive Real Estate, reports observing the localized impact of this judicial decision.

Throughout their career, Jones has meticulously reviewed numerous documents, exemplified by the lengthy listing agreement. This contract in Florida delineates the terms and conditions governing the property transfer between a buyer and seller.

Addressing its contents, Jones explained, “It covers details such as the property address and the types of loans deemed acceptable.”

Of particular note in the contract are the specifics regarding the commission. Traditionally, real estate agents charge 5-6% of the sale price, and traditionally, the seller bears the entire commission cost.

“A portion of that percentage goes to the agent representing the buyer,” Jones emphasized.

Jones anticipates potential shifts in the landscape of commission payments as a direct result of this groundbreaking lawsuit. The ruling favored over 500,000 home sellers who either disputed or were unaware that a segment of the commission they had paid was being paid to the buyer’s broker.

In October 2023, a jury in Kansas City, Missouri, concluded that real estate commission rates had been artificially inflated. The verdict stemmed from allegations that the National Association of Realtors, HomeServices of America, and Keller Williams Realty had collaborated to sustain these inflated rates, resulting in a judgment of $1.8 billion.

Describing the impact of the case, Jones stated, “It’s huge! Because we have this lawsuit. We have additional copycat lawsuits. Essentially, we don’t know what is going to happen!”

Since October, the compensation allocated to a buyer agent in the Multiple Listing Service (MLS) no longer holds a minimum value of $1 but is now $0.

“The perception has changed,” Jones remarked. “Sellers feel like they have more chances to choose. On the flip side, if you are a buyer’s agent, you now can’t guarantee that the seller is going to pay your commission.”

Working with someone?

Contact your loan officer directly using the button below!

Sign up for important product updates