Florida Housing Market

In a landmark ruling, real estate agents in the Florida Housing Market are starting to sweat. There are debates about what this means for the future of homebuying. Buyers, sellers, and agents are watching eagle-eyed as the events unfold. Here are the facts…

The Lawsuit

In Missouri, a class action lawsuit threatens how real estate works in the Florida housing market…

AND IN THE REST OF THE NATION.

A federal judge found that the National Association of Realtors artificially inflated the commission rates for agents. 

When home sellers want to list their homes on the Multiple Listing Service, a database is used by the NAR to manage properties. As such, they need to offer a non-negotiable commission rate.

AVERAGE COMMISSION RATES REST AT 6%. 

That commission rate is then split between the buying and selling agents. However, a group of home sellers, argue that these commission fees keep selling prices higher than necessary. 

Therefore, makes competition when selling your home virtually impossible. 

The home sellers also contest that it makes no sense to have to pay a buying agent. Oftentimes, the home seller and buying agent never meet or even communicate

The judge ruled in favor of the plaintiffs, awarding them a collective 1.8 billion dollars in damages. The NAR plans to appeal this ruling. 

So far, what does this mean for the real estate market as a whole?

How can this change home buying?

In a time of all-time high home prices, this controversial ruling can change how we buy homes.

Experts predict this could be the beginning of the end for commission sharing. The suit would allow home sellers to negotiate commission rates and home-selling services. 

This ability for home sellers to advocate for themselves would encourage any potential home sellers to list their homes. 

NOT HAVING REPRESENTATION WILL MAKE THE MARKET LESS INCLUSIVE

What this means for home buyers, however, is a little different. 

Under the new system, home buyers would pay for the buying agent’s services. It’s predicted that the new competition could lower home prices

Alternatively, since buyers would have to pay the buying agent themselves

It might make home-buying more expensive.

Ultimately, this lawsuit could have a massive impact on Florida’s housing market. 

What does this mean for the Florida housing market?

Florida might be safe for now, but similar suits are already being filed in Texas, Illinois, and South Carolina

In the short term, things are expected to go on as normal. Long-term consequences, on the other hand, are harder to predict. 

The suit could slash agent commissions by as much as 30%. This cut could result in as many as 80% of agents having to leave the industry

Since Florida has 4 out of the 6 most valuable real estate markets in the nation…

FEWER AGENTS MEANS FEWER PROPERTIES SOLD

Currently, Florida has 216,493 real estate agents registered with the NAR. 

With the Florida housing market already facing some of the highest interest rates in the country

It’s impossible to see what the future looks like for housing in the Sunshine State.

Be Great,

GCTV Staff

Disclaimer

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