Financials | National Investor Network

Lawsuits and Tech Startups Attempt to Upend Traditional 6% Commission Model

Written by Jeff Mindham | Sep 30, 2019 4:58:49 PM

In the biggest of three pending lawsuits, plaintiffs contend that the real estate industry is violating federal antitrust laws by compelling home sellers to pay inflated commissions to brokers representing buyers. A number of tech-based real estate companies are also challenging the traditional 6% model.

Jack Ryan, founder and CEO of REX, a real estate startup said, “Why is it that residential real estate broker fees are about three times higher in the U.S. than any other developing country in the world”?