In a move poised to shake up the real estate landscape, the National Association of Realtors (NAR) has agreed to a significant settlement that will see the dissolution of the longstanding six percent commission on home sales. The change comes in the wake of a court mandate that compels the NAR to pay a hefty $418 million in antitrust damages.

This groundbreaking settlement, which still awaits ratification and is expected to go into effect by mid-July, may precipitate a drop in real estate commissions by as much as a third, according to housing experts. Local realtor Briyana Jordan, in an interview with FOX 2, weighs in on the potential implications, "I don’t think we’ll see a change right away. I think it will probably be next year because I don’t even think a lot of sellers are even aware of this."

Moreover, amidst a backdrop of slowly declining interest rates and a real estate market with considerable stacked challenges—ranging from record-high home prices to inventory shortages—the revision of commission structures may lend a helping hand to homebuyers, as per WUSA9. Experts anticipate these changes could lead to a 30% decrease in commission rates, effectively granting buyers and sellers more power in negotiating realtor fees.

This restructuring is not only a windfall for consumers but is anticipated to usher in higher transparency and enhance relationships between realtors and their clients. Tyrone Player II, a realtor with Keller Williams, told FOX 2, "It’s just that we have to be more transparent. So what this does is great for the consumer - and even great for realtors in that everything is put up front."

The settlement, should it receive a judge's nod of approval, will endow the housing market with the biggest overhaul it has witnessed in a century, argues Norm Miller, professor emeritus of real estate at the University of San Diego. In a remark featured by CNN, Miller commented, "I’ve been waiting 50 years for this." He foresees a diversification in the structures of real estate transactions post-settlement, with perhaps "some brokers may charge, say, a $3,000 fee for selling a home, while others will offer a competitive commission."

While the NAR has expressed satisfaction with the settlement as a means to shield members' interests and foster consumer choice, shares of real estate firms like Zillow and Compass plummeted in response to fears of reduced business due to lowered agent commissions. While existing realtors brace for potential shifts in their business models, the broader housing industry signals a mix of caution and optimism as the market steadies itself for a revolutionary overhaul.