Real Estate Brokerage

CFA FAQ Explains Why Real Estate Lawsuits Have Gained Steam and Increased Chances of Greater Price Competition and Lower Commissions

Washington, D.C. – Today, the Consumer Federation of America (CFA) is releasing a FAQ that explains how a recent Illinois court decision and other factors have increased chances that residential real estate commissions will become more competitive, negotiable, and overall, lower. The FAQ addresses the following specific questions:

  • How does the industry set prices?
  • Why is the litigation likely to change industry practices?
  • Would disclosure of buyer broker commissions provide a satisfactory remedy to the complaint?
  • Would the uncoupling of commission rates significantly benefit consumers?

“Hidden, non-negotiable buyer broker commissions represent the linchpin of a residential real estate brokerage system with relatively high and fixed prices,” noted Stephen Brobeck, a CFA senior fellow and the FAQ’s author. “Since courts have emphatically rejected industry petitions to dismiss two major lawsuits, it has become more likely that major changes to this system will occur,” he added.

Contact: Stephen Brobeck,