A Missouri jury on Tuesday found the National Association of Realtors (NAR), a real estate trade group, HomeServices of America and Keller Williams liable for nearly $1.8 billion in damages for conspiring to increase commissions.
A judge could issue an injunction to prevent multiple listing services (MLS) commission splitting, which would harm the buyer-agent business.
“We view it as a tremendous day of accountability for these companies,” Michael Ketchmark, the lead attorney for the plaintiffs, told CNN.
The lawsuit involved home sales that occurred between April 2015 and June 2022. The decision came after several hours of deliberation by the Kansas City jury.
According to NAR President Tracey Kasper, the matter is not close to being finalized, even though the trial lasted 11 days.
“We will appeal the liability finding because we believe the NAR rules serve the best interests of consumers, support market-based pricing, and promote business competition,” Kasper’s statement said. “In the meantime, we will ask the court to reduce the damages awarded by the jury.”
Kasper argued that consumers are “doing better” and that competition can “thrive” because of how local marketplaces work.
According to housing policy analyst Jaret Seiberg, who spoke to CNN, an appeal process could take up to three years, and the losing party will likely try to litigate the case in court.
Ketchmark filed a new class action lawsuit Tuesday against real estate companies including Douglas Elliman, Compass and Redfin, alleging the companies violated antitrust laws.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.