Native Realty CEO Discusses NAR Settlement Impacts with The Real Deal

Jaime Sturgis was interviewed by The Real Deal‘s Kate Hinsche for an article on the potential impact of the $418 million National Association of Realtors settlement of a class-action lawsuit filed by a group of homeowners in Missouri. As part of the settlement, NAR will prohibit listing agents from offering compensation to buyer’s agents through the Multiple Listing Service.

While South Florida real estate experts believe home prices will not be negatively impacted by the settlement and new MLS rules, they do expect significant attrition within the brokerage industry. Sturgis predicted a “thinning of the herd,” especially when it comes to part-time real estate agents. He views that as a positive, as the best agents will adjust and continue to prosper.

“In South Florida, where median home prices continue to rise despite the slowdown in sales, the class action litigation is not expected to cause home prices to fall. Commissions will adjust, and buyer’s agents will try to get their clients to sign buyer-broker agreements, known as BBAs, for the sellers who don’t want to pay both commissions, brokers say. Some agents will likely leave the industry,” the article states.

Click here to read the full article.