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### Article from CNN

#### Changes in Home Purchase Commissions

The 6% commission, a standard in home purchase transactions, is no more. In a groundbreaking move expected to drastically reduce the cost of buying and selling a home, the National Association of Realtors announced a settlement with groups of homesellers, agreeing to end landmark antitrust lawsuits by paying $418 million in damages and eliminating rules on commissions.

The NAR, representing over 1 million Realtors, also agreed to implement new rules. One rule prohibits agents’ compensation from being included on listings placed on local centralized listing portals known as multiple listing services, which critics say led brokers to push more expensive properties on customers. Another rule ends requirements that brokers subscribe to multiple listing services, where homes are given a wide viewing in a local market. Additionally, a new rule will require buyers’ brokers to enter into written agreements with their buyers.

The agreement is set to revolutionize the current home buying and selling business model, where sellers pay both their broker and a buyer’s broker, driving housing prices artificially higher according to critics. With real estate commissions expected to fall 25% to 50%, opportunities for alternative models of selling real estate are expected to increase, including flat-fee and discount brokerages.

#### How AI legalese decoder Can Help

AI legalese decoder can assist in understanding the legal jargon and complex terms in the settlement agreement announced by the National Association of Realtors. By using AI technology to decode the legalese, individuals can have a clearer understanding of the implications of the settlement on the real estate industry and how it may impact homebuyers and sellers. AI legalese decoder can simplify the language used in legal documents, making it easier for individuals to grasp the key information and changes brought about by the agreement.

The platform can also provide insights into the potential effects of the settlement on real estate firms and the market as a whole, assisting in making informed decisions regarding buying or selling properties in the future. By leveraging AI technology, individuals can navigate the complexities of legal agreements like the one reached by the NAR, ensuring they are well-informed and prepared for any changes in the real estate landscape.

#### Impact on Real Estate Firms

Shares of real estate firms Zillow and Compass plummeted more than 13% as investors feared lower commission rates for agents could lead to reduced business for real estate platforms. In a 10-K filing, Zillow cautioned that significantly impacted agent commissions could have adverse effects on the financial condition and results of operations. Similarly, shares of real estate brokerage Redfin dropped nearly 5%.

Conversely, homebuilder stocks rose following the news, with Lennar shares gaining 2.4%, PulteGroup shares adding 1.1%, and Toll Brothers shares increasing by 1.8%.

This shift in the real estate landscape marks the biggest change in the housing market in a century, according to Norm Miller, professor emeritus of real estate at the University of San Diego. While the future remains uncertain, the settlement is expected to lead to a more competitive housing market and lower costs for homebuyers.

### Conclusion

The settlement with the NAR signifies a significant turning point in the real estate industry, with far-reaching implications for homebuyers, sellers, and real estate firms. By decoding the legal language and understanding the implications of the agreement, individuals can better navigate the changing landscape and make informed decisions in the housing market.

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