Billions on the table? Expert breaks down what you might receive!
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If you sold a home in the last few years, you might have seen headlines about a $1 billion real estate settlement and wondered: “Am I getting a piece of that pie?” The answer is… maybe!
But before you start planning a big vacation, let’s break down what this settlement really means, how much you could get, and—most importantly—how this could change the way Americans buy and sell homes for good.
What’s This Settlement All About?
A housing expert has outlined what Americans might expect to receive from a historic $1 billion real estate settlement—and the figure is likely lower than many assume.
Last August, the real estate industry saw a seismic shift after lawsuits prompted major changes in how agents earn their commissions.
Previously, sellers typically paid around 5 to 6 percent in fees, which were split between their agent and the buyer’s agent.
These commission structures became embedded in home prices, contributing to inflation. Some agents were even accused of directing buyers toward listings with higher commission payouts.
The lawsuits argued that such practices breached antitrust laws by enabling brokers to cooperate in driving up commission costs.
As a result of the settlement, several brokerages agreed to revise how fees are charged and to compensate sellers who may have been overcharged.
Who’s Eligible for a Payout?
Those who sold homes during specific timeframes—detailed below—and paid agent commissions could qualify for a portion of the payout. Claims must be submitted by May 9.
Holden Lewis, a home and mortgage expert at NerdWallet, cautioned that due to the potentially massive number of eligible sellers, individual payouts may be minimal.
Also read: A big payday could be waiting for you: how to claim up to $48,000 from a $92 million Settlement
“When we talk about the number of home sellers who are eligible, it's probably in the tens of millions. Maybe as much as 30 million,” he told DailyMail.com.
The full $1 billion total comprises five separate settlements with various brokerages, with the largest—a $418 million agreement—involving the National Association of Realtors (NAR) and HomeServices.
Lewis noted that the final payout each person receives will depend on how many file claims and what portion is taken by attorneys.
“What if the attorneys take 30 percent, so that brings the amount down to $700 million,” he explained. “What if you end up with, say, 25 million people who file claims. Then that's $700 million divided by 25 million, so each of those claimants get $28.”
He clarified these figures could change significantly based on actual claim volume. “But the bottom line is, I think people who sold houses and collect from this settlement, most of them will collect less than $100.”
According to Lewis, the bigger impact of the settlement is the policy change, which is meant to drive more competition among brokerages.
“Individual home sellers are not going to collect a whole lot of money each. But if you're the NAR, you're paying out $418 million, and if you're one of these brokerages you're probably paying out millions of dollars.
“And so each of those entities, this is something that leaves a mark.”
To be eligible for any portion of the settlement, claimants must meet three criteria:
Source: Goode Lawyer / Youtube.
An MLS is a platform that agents use to list properties and help clients find homes.
There are hundreds of these services nationwide, and agents typically pay to access them. In return, they can post listings and view properties listed by other agents.
Previously, listing agents and buyers’ agents would agree to share commissions via the MLS, with the buyer’s agent fee embedded in the listing—but hidden from public view. This system allowed agents, in theory, to “steer” clients toward homes offering higher commissions.
New settlement terms now prohibit MLS listings from including buyer’s agent commission information. Discussions about fees between seller’s and buyer’s agents must now occur privately.
Also read: Could you be owed a piece of this $990K settlement? Here's the one “number” that unlocks it
To file a claim on the official website, individuals must provide personal information and select a payment method. Options include debit card, check, Zelle, or Venmo.
If the payout is so small, why all the fuss? The real impact is in the new rules for real estate commissions:
- No more hidden commissions: Buyer’s agent commissions can no longer be listed on the MLS. Instead, agents must discuss their fees directly with clients.
- More transparency: Sellers and buyers will have a clearer understanding of who’s getting paid what—and can negotiate accordingly.
- Potential for lower costs: With more competition and transparency, commissions could come down over time, saving future home sellers thousands of dollars.
For those who remember when buying or selling a home meant a handshake and a paper contract, these changes are a big deal.
Read next: Received unwanted calls? You may be eligible for a payout of up to $281
Did you sell a home in the last few years? Are you planning to file a claim? Do you think these changes will make real estate fairer for everyone? Share your experiences and questions in the comments below!
But before you start planning a big vacation, let’s break down what this settlement really means, how much you could get, and—most importantly—how this could change the way Americans buy and sell homes for good.
What’s This Settlement All About?
A housing expert has outlined what Americans might expect to receive from a historic $1 billion real estate settlement—and the figure is likely lower than many assume.
Last August, the real estate industry saw a seismic shift after lawsuits prompted major changes in how agents earn their commissions.
Previously, sellers typically paid around 5 to 6 percent in fees, which were split between their agent and the buyer’s agent.
These commission structures became embedded in home prices, contributing to inflation. Some agents were even accused of directing buyers toward listings with higher commission payouts.
A housing expert has revealed that most Americans eligible for the $1 billion real estate settlement will likely receive less than $100 each, with estimates as low as $28 depending on how many people claim and lawyers’ fees. Image source: Breno Assis / Unsplash.
The lawsuits argued that such practices breached antitrust laws by enabling brokers to cooperate in driving up commission costs.
As a result of the settlement, several brokerages agreed to revise how fees are charged and to compensate sellers who may have been overcharged.
Who’s Eligible for a Payout?
Those who sold homes during specific timeframes—detailed below—and paid agent commissions could qualify for a portion of the payout. Claims must be submitted by May 9.
Holden Lewis, a home and mortgage expert at NerdWallet, cautioned that due to the potentially massive number of eligible sellers, individual payouts may be minimal.
Also read: A big payday could be waiting for you: how to claim up to $48,000 from a $92 million Settlement
“When we talk about the number of home sellers who are eligible, it's probably in the tens of millions. Maybe as much as 30 million,” he told DailyMail.com.
The full $1 billion total comprises five separate settlements with various brokerages, with the largest—a $418 million agreement—involving the National Association of Realtors (NAR) and HomeServices.
Lewis noted that the final payout each person receives will depend on how many file claims and what portion is taken by attorneys.
“What if the attorneys take 30 percent, so that brings the amount down to $700 million,” he explained. “What if you end up with, say, 25 million people who file claims. Then that's $700 million divided by 25 million, so each of those claimants get $28.”
The settlement is the result of lawsuits alleging that major brokerages engaged in anti-competitive commission practices that inflated house prices, prompting changes to how real estate agents charge their fees. Image source: Maximillian Conacher / Unsplash.
He clarified these figures could change significantly based on actual claim volume. “But the bottom line is, I think people who sold houses and collect from this settlement, most of them will collect less than $100.”
According to Lewis, the bigger impact of the settlement is the policy change, which is meant to drive more competition among brokerages.
“Individual home sellers are not going to collect a whole lot of money each. But if you're the NAR, you're paying out $418 million, and if you're one of these brokerages you're probably paying out millions of dollars.
“And so each of those entities, this is something that leaves a mark.”
To be eligible for any portion of the settlement, claimants must meet three criteria:
- They must have sold a home during the qualifying period.
- They must have paid a commission to a real estate brokerage in connection with that sale.
- The home must have been listed on a Multiple Listing Service (MLS) in the United States.
Source: Goode Lawyer / Youtube.
An MLS is a platform that agents use to list properties and help clients find homes.
There are hundreds of these services nationwide, and agents typically pay to access them. In return, they can post listings and view properties listed by other agents.
Previously, listing agents and buyers’ agents would agree to share commissions via the MLS, with the buyer’s agent fee embedded in the listing—but hidden from public view. This system allowed agents, in theory, to “steer” clients toward homes offering higher commissions.
New settlement terms now prohibit MLS listings from including buyer’s agent commission information. Discussions about fees between seller’s and buyer’s agents must now occur privately.
Also read: Could you be owed a piece of this $990K settlement? Here's the one “number” that unlocks it
To file a claim on the official website, individuals must provide personal information and select a payment method. Options include debit card, check, Zelle, or Venmo.
If the payout is so small, why all the fuss? The real impact is in the new rules for real estate commissions:
- No more hidden commissions: Buyer’s agent commissions can no longer be listed on the MLS. Instead, agents must discuss their fees directly with clients.
- More transparency: Sellers and buyers will have a clearer understanding of who’s getting paid what—and can negotiate accordingly.
- Potential for lower costs: With more competition and transparency, commissions could come down over time, saving future home sellers thousands of dollars.
For those who remember when buying or selling a home meant a handshake and a paper contract, these changes are a big deal.
Read next: Received unwanted calls? You may be eligible for a payout of up to $281
Did you sell a home in the last few years? Are you planning to file a claim? Do you think these changes will make real estate fairer for everyone? Share your experiences and questions in the comments below!
