Real Estate Is Changing. Here’s What You Need to Know.

The real estate industry is in the midst of its most significant shift in decades—and we believe you deserve clear, timely insight into what’s happening and how it could impact you.

On Friday, the National Association of Realtors (NAR) agreed to settle multiple class action lawsuits challenging the long-standing practice of sellers paying buyer agent commissions. This legal structure, in place since the 1990s, has underpinned the buyer agency model for more than a generation. Plaintiffs in the lawsuits alleged this practice artificially inflated commission rates. In the first major trial, a jury agreed—awarding over $5.3 billion in damages.

---

Major Brands, Major Implications

Several of the industry’s largest companies—including Anywhere Brands, parent to Coldwell Banker, CENTURY 21, and Sotheby’s International Realty—settled prior to trial. The sole remaining corporate defendant is Berkshire Hathaway HomeServices.

If the settlement is approved, it will usher in rule changes as early as July 2024. These changes represent a dramatic shift in how buyers and sellers engage real estate agents and negotiate compensation.

---

The Future of Commissions: A Decoupled Model

Under the proposed new structure:

• Sellers will no longer be required to pay the buyer’s agent commission.

• Buyers and sellers will independently negotiate compensation with their respective agents.

• Agent commission rates will become more transparent—and more competitive.

Researchers and economists expect this decoupling to apply downward pressure on commission rates overall, as the market adjusts to new norms.

---

Why This Matters to Buyers and Sellers

This isn’t just a legal change—it’s a practical one. Buyers and sellers now face new decisions about how to structure their representation and what services they want to pay for. Navigating this new landscape will require trusted, experienced guidance—not just lower fees.

---

Where Higgerson & Company Stands

At Higgerson & Company, we approach these changes with confidence. As a locally owned, proudly independent real estate firm, we are not bound by corporate red tape or franchise mandates. That independence allows us to:

• Set fees based on property type, project scope, and client goals

• Deliver bespoke marketing and visual presentation for every listing

• Maintain flexibility in how we work with both buyers and sellers

We are not the cheapest firm in the region, and we don’t try to be. We compete on quality, service, and local expertise, not on cutting corners. Our clients value the experience, judgment, and marketing edge we bring to one of life’s most complex financial transactions.

With over 25 years of real estate experience in the Upper Valley, we’ve built a reputation for results, responsiveness, and professionalism that stands the test of time—no matter how the industry changes.

---

Let’s Talk About What’s Next

The coming months will bring continued evolution in how homes are bought and sold. If you have questions, we welcome the opportunity for a thoughtful conversation.

Please reach out—at Higgerson & Company, we offer trusted local insight and strategic real estate results.