RE/MAX, the second real estate brokerage to settle two class-action lawsuits relating to buyer broker commissions, has been an industry leader for many years. The lawsuits, brought by the Chamber of Commerce, challenged existing buyer broker commission rate structures, and with the proposed settlement, RE/MAX has chosen to introduce a new commission structure for buyers, allowing them to negotiate more competitive rates with brokers. It could open the door for other firms to follow suit.
This settlement could have an enormous impact on the way real estate brokerages structure their fees and the services they provide to buyers. For instance, buyers could have more choice in negotiating lower broker commissions than ever before. Real estate brokers will now have to adjust their business models in order to compete effectively in the marketplace. Finally, the settlement could result in more market transparency, with broker fees being disclosed up-front, giving buyers the opportunity to make better-informed decisions about their real estate purchases.
Main Points:
• Gateway development brings a new commission structure for buyers, allowing them to negotiate more competitive rates with brokers
• Could open door for other firms to follow suit
• Buyers having more choice in negotiating lower broker commissions than ever before
• Real estate brokers may have to adjust models
• Could increase market transparency, with broker fees disclosed up-front
• Can help buyers make better-informed decisions about real estate purchases
You can read this full article at: https://www.housingwire.com/articles/re-max-settles-buyer-broker-commission-lawsuits-for-55-million/(subscription required)
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