Commissions and Omissions: Trends in Real Estate Broker Compensation

Rupkatha Banerjee and Andrew D. Paciorek
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Andrew D. Paciorek: https://www.federalreserve.gov/econres/andrew-d-paciorek.htm

No 2025-05-12, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: In March 2024, the National Association of Realtors reached a $418 million settlement to end multiple antitrust lawsuits brought against it and other brokerages by home sellers (Delouya 2024a). By banning the longstanding practice of advertising commission rates to be paid to buyers' agents in home listings and requiring buyers and their agents to explicitly set compensation terms, the settlement has the potential to upend the traditional model of residential real estate broker compensation, in which the buyer's and seller's agent were each paid as much as 3 percent of the home value by the seller.

Date: 2025-05-12
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2025-05-12

DOI: 10.17016/2380-7172.3711

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