Real Estate Brokers Pocketing Up to 6% in Fees Draw Antitrust Scrutiny
- DOJ weighs case as class-action trial starts in Missouri
- Typical 5%-6% commission split by two brokers adds to costs
A real estate agent shows a home to a potential buyer in Miami, Florida.
Photographer: Joe Raedle/Getty ImagesThe lucrative broker commission system at the heart of the US residential housing market is facing unprecedented antitrust scrutiny from the Justice Department and two private class-action lawsuits that risk weakening the National Association of Realtors, the industry’s powerful lobbying group.
Federal antitrust enforcers are poised to decide whether to pursue their own case after a years-long investigation, according to a person familiar with the issue. The Justice Department is focused on the real estate commission-sharing system that typically puts homesellers on the hook for a 5% to 6% cut of the sale, split between their agent and the buyer’s agent.