America’s realtor racket is alive and kicking
Celebrations over a settlement between agents and homeowners are premature
![A "for sale" sign stands in front of a house in Westwood, Massachusetts, United States](https://www.economist.com/cdn-cgi/image/width=1424,quality=80,format=auto/content-assets/images/20240323_FNP503.jpg)
For five years homeowners have been waging war. They have railed against the extortionate fees charged by estate agents, known as “realtors” in America, which are enforced by anticompetitive practices. They have filed lawsuits against brokers; fought cases against the National Association of Realtors (nar), an industry body; and sued the keepers of databases of homes for sale, known as “multiple-listing services”. Juries and judges across the country have found merit in their claims, deciding that homeowners have been ripped off, manipulated and duped into overpaying. In recent months they have awarded billions of dollars to plaintiffs and sent the two sides into negotiations over the rules that control realtors’ practices.
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This article appeared in the Finance & economics section of the print edition under the headline “The 6% problem”
Finance & economics March 23rd 2024
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