NAREB PREPARES MEMBERS FOR MAJOR CHANGES TO HOME SALES AGENT COMMISSIONS AFTER LAWSUIT SETTLEMENT

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Mar 18, 2024, 16:53 ET

President Dr. Courtney Johnson Rose Appoints Special Task Force to Study Lawsuit Aftermath

WASHINGTON, March 18, 2024 /PRNewswire/ -- Representing the interests of more than 100,000 Black real estate professionals, the National Association of Real Estate Brokers (NAREB) announced today that it is preparing member agents and brokers for a new environment created by a lawsuit settlement that will significantly alter the compensation of agents on home sales in the United States.

NAREB, whose members are called Realtists, is a trade association that mainly represents African American real estate professionals and advocates for Black homeownership.

Last week, the National Association of Realtors (N.A.R.) settled a Missouri lawsuit challenging the decades-old system requiring the agents of home sellers to split the commission on sales with the agents of home buyers. Most commissions range between five and six percent of home sale prices. Under the settlement, home sellers and their agents can no longer outline compensation for agents representing buyers within their MLS listings. They can, however, negotiate outside of the official listing.

NAREB President Dr. Courtney Johnson Rose acknowledged that many NAREB members may be affected by the commission changes because the majority are usually buyer's agents.

"NAREB recognizes that this settlement, if approved by the judge, will bring dramatic changes to our industry," Dr. Rose said. "Our members often represent Black families and individuals who struggle to raise money for the down payments needed to purchase homes due to decades of discrimination and a lack of generation wealth. Paying the commission for their agent will be an added burden. NAREB will help our members navigate these changes and continue to create avenues for them to thrive and help Black consumers achieve the dream of home ownership."

NAREB is taking several steps, including:

Appointing a special task force that will study the projected impact of the settlement on its members, as well as the Black community. The task force will recommend how the organization can best assist its members and prevent the settlement from limiting the growth of Black homeownership. The task force will include J. Rene Walker, Texas Broker of Record for Compass Real Estate; Donnell Spivey, Exit Spivey Professional Realty Co.; Furtesha Woods, Broker, Owner - Woods Realty; Irving Cham, District Vice President, Coldwell Banker (Anywhere); Muriel Williams-Thompson, Broker/Owner, Town and Country Realty; and Julia Lashley Israel, Head of Inclusion and Belonging – Keller Williams Realty International.
Developing a Realtist Toolkit for NAREB members that will include the most relevant information and access to resources that can assist them.
Scaling up the NAREB Black Developer Academy, which was launched this year. The academy will provide technical assistance, training, and education to members who want to become real estate developers. This can provide additional revenue avenues while helping increase the housing inventory in communities of color.
Leveraging the 100-city NAREB Building Black Wealth Tour and the NAREB National Building Black Wealth Day on April 13 to strengthen the connection between our members and the communities that they serve. While we educate Black consumers on purchasing homes and building wealth, our members will also explain the services and value they can bring to our communities.

"With NAREB at their side, our agents and brokers will flourish and impact communities like we have for the past 77 years. Our organization was founded at the peak of housing discrimination; our members have always had to be resilient as we fought for and continue to fight for democracy in housing," Dr. Rose said, noting the training and educational courses the organization provides at various conferences throughout the year.

"NAREB is prepared to lead in this changing environment and ensure that our members, Realtists, are strong and remain valuable assets in communities," she said. "NAREB is committed to the advancement of Black real estate professionals, increasing Black home ownership and our enduring pursuit for Democracy in Housing."

(For print or broadcast interviews with NAREB President Courtney Johnson Rose, contact Michael Frisby at [email protected] or 202-625-4328.)

ABOUT THE NATIONAL ASSOCIATION OF REAL ESTATE BROKERS

NAREB was formed in 1947 to secure equal housing opportunities regardless of race, creed, or color. NAREB has advocated for legislation and supported or instigated legal challenges that ensure fair housing, sustainable homeownership, and access to credit for Black Americans. Simultaneously, NAREB advocates for and promotes access to business opportunities for Black real estate professionals in each real estate discipline. From the past to the present, NAREB remains an association that is proud of its history, dedicated to its chosen struggle, and unrelenting in its pursuit of the REALTIST®'s mission/vision embedded goal, "Democracy in Housing."

Contact:
Michael K. Frisby
[email protected]/202-625-4328

SOURCE NAREB