On August 19, 2024, reAlpha Tech Corp., a real estate technology company, announced the effectiveness of a significant rule change by the National Association of Realtors (NAR) that is expected to benefit the business landscape for real estate technology firms. The rule change, which took effect on August 17, 2024, follows a $418 million settlement with the NAR announced in March 2024. This change alters the traditional commission structure in the U.S. residential real estate market, where previously home sellers paid commissions for both the seller's and buyer's real estate agents, typically totaling 6% of the home price. Now, buyers will need to sign a separate agreement if they choose to use a buyer's agent, potentially increasing home purchase costs if sellers opt...Show More

On August 19, 2024, reAlpha Tech Corp., a real estate technology company, announced the effectiveness of a significant rule change by the National Association of Realtors (NAR) that is expected to benefit the business landscape for real estate technology firms. The rule change, which took effect on August 17, 2024, follows a $418 million settlement with the NAR announced in March 2024. This change alters the traditional commission structure in the U.S. residential real estate market, where previously home sellers paid commissions for both the seller's and buyer's real estate agents, typically totaling 6% of the home price. Now, buyers will need to sign a separate agreement if they choose to use a buyer's agent, potentially increasing home purchase costs if sellers opt not to cover these costs. reAlpha Tech anticipates that this will create opportunities for real estate technology companies offering commission-free home buying services, such as their AI-powered platform, Claire. Claire provides a commission-free, full-service experience and is currently available in 20 counties in Florida, with plans for expansion. reAlpha Tech aims to generate revenue through title services and plans to offer additional services such as mortgage brokering and home insurance in the future.