Local experts weigh in on proposed National Association of Realtors settlement impacts

COLLEGE STATION, Texas (KBTX) – The National Association of Realtors accepted a $418 million settlement covering claims of antitrust violations.

However, the settlement isn’t finalized just yet. Before any changes affect the market, the U.S. Department of Justice and the courts also have to accept the terms of the settlement, according to realtor Raylene Lewis.

Lewis said her office is already fielding calls from homebuyers about the possible impacts of the proposed settlement.

According to her, buyers have expressed concerns about the settlement possibly leading them to pay more than expected.

“They’re wondering if they’re going to have a whole bunch of fees or expenses that they didn’t plan for, and I would say right now there is no need to panic,” she said.

But legal experts say if the settlement as it’s currently written does get accepted, the market is in for a major shift.

“The more information consumers have up front, the probably, the better choices they’re going to make. And that is going to, I think, compel brokers on both sides to be a little bit more transparent,” attorney Shane Phelps said.

The lawsuit alleges the National Association of Realtors took part in anti-competitive practices, like artificially inflating broker fees.

Essentially, Phelps said the settlement would give buyers more transparent cost information.

“Consumers could be a little bit pickier about which real estate agents, which brokers, buyers, or sellers they choose,” Phelps said.

While Lewis said Texas already has some transparency guidelines in place, the settlement would make transparency a requirement, helping both buyers and sellers.

“Making sure that the consumers knows that they have choices and that they can interview and pick the agent that they want to work with,” she said.

Ultimately, this settlement could affect home prices overall.

“People who were trying to make a living as real estate agents to compete with their competitors, and that means they’re probably going to undersell them,” Phelps said.

It’s estimated that a final decision regarding the settlement will be announced in July.