Following a two-week trial in court the National Association of Realtors was found to artificially inflate brokerage commissions. They were asked to pay $1.8 billion in damages.

A federal jury in Missouri found on Tuesday that the National Association of Realtors and several real estate firms had conspired to artificially inflate brokerage commissions, and as a result, they were sentenced to pay $1.8 billion in damages.

Following a two-week trial in federal court in Kansas City, the ruling could significantly alter the way that Americans purchase houses. Additionally, it coincides with a stagnant U.S. real estate market, with mortgage rates close to 8% and double-digit declines in existing home sales from a year earlier.

The commissions that house sellers give to the buyer's agent are at the heart of the lawsuit. NAR guidelines, which require sellers to provide a fee offer to the buyer's agent when selling property, somewhat regulate those payments. Real estate agents representing potential buyers are aware of the offer, although they are typically not aware of the numbers. This may cause agents to pressure purchasers into transactions in order to increase their own commissions.

The association and other defendants, according to the plaintiffs, conspired to increase the commission that sellers give to brokers who represent buyers. Those who sold hundreds of thousands of homes in Missouri, as well as portions of Illinois and Kansas, between 2015 and 2022, are among the class members.

Lead plaintiffs' lawyer Michael Ketchmark told the media he anticipates the judgment verdict to be tripled under US antitrust law to exceed $5 billion.