How the cost of buying and selling real estate will change after the court loses the real estate commission case. (120 characters)

A jury verdict against the National Association of Realtors and major real estate brokers could completely change the residential real estate market. The accusers argue that commission rates are too high, buyer brokers are overpaid, and NAR rules and corporate practices lead to price fixing. In turn, NAR argues that the rules promote competition and efficiency by ensuring transparency and fairness in the local real estate market. NAR has filed a $1.8 billion appeal, but final resolution of the case could take several years. Potential policy changes could severely impact Realtors' earnings.

This court decision comes at an inopportune time for the real estate market. The rising interest rate, driven by the Federal Reserve's fight against inflation, has already caused home sales to fall to their lowest level since 2010. Potential sellers don't want to sell their properties if they have to pay for a new mortgage at a rate much higher than the current rate.

The lawsuits could also lead to pressure on commissions, which have long been threatened by advances in technology and struggling markets. Corrections imposed by the courts can result in realtors being banned from working with both sides of a transaction. This could lead to a reduction in the number of properties available for sale, while at the same time increasing buyers' attempts to find properties on their own to save on commission.

Local changes to the real estate market will be critical. For example, the Real Estate Board of New York (REBNY), which is not affiliated with NAR, recently announced future changes to its rules to increase transparency and consumer confidence in the residential real estate market. The changes will go into effect on January 1, and their purpose is to make brokerage payments to the buyer directly from the seller, rather than through a sales agent as was previously the case. This could be the future for the real estate market, and other real estate exchanges may follow suit.

For now, real estate companies can continue to operate under the current system, but NAR strongly recommends the use of buyer representation agreements for clarity and understanding. NAR also encourages its members to continue to inform clients that commissions are subject to review and are set between brokers and clients.

With all that's going on, one thing is clear - a return to the status quo ante is no longer possible. It is important for realtors to keep up to date with current events and keep up with new regulations and market requirements.