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Real estate commissions, unassailable for decades, could crumble after landmark settlement

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Real estate commissions, unassailable for decades, could crumble after landmark settlement


The National Association of Realtors announced Friday that it had reached a legal settlement that upends the traditional model of sellers paying for the buyer’s agent in a home purchase. The agreement has the potential to save home sellers billions of dollars every year, but could also complicate purchases for buyers.

The NAR, the largest trade group representing residential real estate agents, agreed to pay $418 million over four years to settle claims that the group and its members engaged in uncompetitive practices that forced sellers to compensate agents who brought buyers to the closing table.

“There are valid positions on both sides, and this is the way the game has been played,” said Mark Lee Levine, a professor at the Burns School of Real Estate and Construction Management at the University of Denver who has tracked the issue closely.

Starting in July, the game will be played differently. Buyers can no longer count on sellers paying the agents representing them, Levine said. On a $600,000 home, that could shift around $15,000 to $18,000 in typical commission costs back to the buyer.

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Commissions on a home sale are, in theory, completely negotiable, but they typically run in the 5% to 6% range.  How commissions get split can vary, but sellers almost always pay the buyer’s agent via what is known as a cooperative compensation model or co-op.

What a seller was willing to pay was communicated on the multiple-listing service or MLS controlled by local Realtor associations. If the compensation was too low or non-existent, buyer agents would pass on showing a home, plaintiffs in a case known as Sitzer-Burnett argued.

Listing the buyer agent compensation is now prohibited as part of the settlement. States must require buyers and their agents to enter into written agreements detailing compensation and what services are provided for it, something Colorado already requires.

Buyers still have the right to push for a lower commission, as was the case before. But if they know they are footing the bill, they may be much more motivated to do so.

“For far too long, home sellers have faced a system recognized by many as blatantly unfair. Individual sellers often feel powerless to negotiate a better deal for themselves given the risk that offering lower commissions will cause brokers to steer buyers to other properties,” Robert Braun, a partner in Cohen Milstein’s Antitrust practice, and one of the attorneys that led the case against NAR said in a statement.

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Technology has lowered or eliminated commissions across wide parts of the economy, from stock brokerages to travel agencies. But they largely remained unassailable in real estate until a jury ruled against the industry last year. A series of settlements have followed that ruling.

Friday’s settlement resolves claims against NAR and its more than 1 million members, and against regional and local Realtor associations, including the Colorado Association of Realtors and the Denver Metro Association of Realtors. The settlement also shields brokerages run by a NAR member that did $2 billion or less in transactions in 2022 in the case, sparing them the cost of extensive litigation.

“We are pleased we have a solid path forward. We know how to move forward now. We are looking forward to going back and selling,” said Libby Levinson-Katz, head of DMAR’s Market Trends Committee.

Although the heavy weight of litigation in the Sitzer case has been lifted, what comes next is uncertain.

Will sellers and buyers, aided by cost-saving technology, push to lower some of the highest real estate transaction costs in the developed world? Will the real estate brokerage industry, already struggling from higher interest rates, suffer another steep drop in revenues, forcing tens of thousands of agents out of the field? Will buyers get a break via lower home prices to cover their added costs, or will sellers pocket the savings, leaving buyers in the lurch?

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“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” said Nykia Wright, NAR’s interim CEO in a release.

One by one large brokerage firms have settled in the case, the most recent being Keller Williams, which reached a $70 million agreement in February. HomeServices of America, whose brands include Berkshire Hathaway HomeServices and Kentwood Real Estate, remains a holdout.

Listing agents and buyer agents can still communicate directly about commissions and sellers can still pick up those costs. Sellers might do that if they think it will generate more interest in their listings or set them apart. But not every seller will agree, and a buyer may be set on owning that house.

That is where things get more complicated. The agreement a buyer has signed with the agent will then leave the bill for services rendered on the buyer’s table. Buyers, already stretched to come up with down payments and escrow costs, not to mention elevated home prices, may lack the funds, killing a deal. Or their agents might agree to take a smaller cut.

“We shouldn’t have been fighting over the commissions. We should have been fighting to serve our customers better,” said Bret Weinstein, founder of Guide Realty in Glendale.

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Weinstein said becoming a real estate agent comes with a low bar of entry. Most who get in do a minimal number of transactions, if any, in a given year. And horror tales abound of unaware consumers in the hands of unskilled agents.

“It will shake up the industry,” he said of the changes coming. “One day there will be an exodus of people leaving.”

Buyer agents who remain will pursue different models, he predicted. One camp will offer high-level service from skilled negotiators who can justify their costs. That is one reason top-performing agents aren’t fearful of what comes next, he said.

At the other end will be agents offering a lower level of services in return for discounted commissions. Expect more technology firms to emerge that will try to automate the buying process or lower costs in other ways.

Levine offers another scenario, one where consumers continue to do the legwork in researching neighborhoods and finding a place through online resources. They negotiate terms or hire someone to do that. Then a real estate lawyer is brought in to handle the contract and closing. The costs would be lower and the approach might appeal to repeat buyers.

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“As of July that co-op is going away. There is no guarantee that a buyer’s agent will get paid,” Weinstein said.

It will be a brave new word for consumers and the real estate industry alike.



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Denver, CO

Jazz List 8 Players on Injury Report vs. Nuggets

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Jazz List 8 Players on Injury Report vs. Nuggets


The Utah Jazz and Denver Nuggets are tipping off their second-to-last meeting of the 2025-26 season on Friday in the Mile High, where for the Jazz in particular, they’ll be dealing with several injuries headed into the matchup that’ll make them shorthanded once again. 

Here’s what to expect on the injury front for both the Jazz and Nuggets on Friday night:

Utah Jazz Injury Report

OUT – Isaiah Collier (hamstring)

OUT – Keyonte George (hamstring)

OUT – Jaren Jackson Jr. (knee)

OUT – Walker Kessler (shoulder)

OUT – Lauri Markkanen (hip)

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OUT – Jusuf Nurkic (nose)

PROBABLE – Kyle Filipowski (illness)

OUT – Blake Hinson (two-way)

It’s a lot of the same for the Jazz when looking back at some of their recent injury reports, but there’s also some good news to note as well.

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Second-year big man Kyle Filipowski, specifically, is trending up to play in Denver after dealing with an illness against the Washington Wizards; an issue that kept him sidelined for one game and left the Jazz’s frontcourt notably shorthanded for what would be a double-digit loss.

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During his post-All-Star stretch, Filipowski has been averaging 13.2 points, 8.8 rebounds, 4.2 assists, along with 1.2 steals and 0.9 blocks through 11 games.

He’s slotted in primarily as the Jazz’s starting center since both Walker Kessler and Jusuf Nurkic have been out with season-ending injuries, and has shown some nice flashes throughout.

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Mar 23, 2026; Salt Lake City, Utah, USA; Utah Jazz center Kyle Filipowski (22) controls the ball during the first quarter against the Toronto Raptors at Delta Center. Mandatory Credit: Chris Nicoll-Imagn Images | Chris Nicoll-Imagn Images

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However, outside of getting Filipowski back in the mix, the Jazz will still be without second-year guard Isaiah Collier, who continues to deal with hamstring soreness, and will also continue to be down Keyonte George and Lauri Markkanen with their extended absences.

It remains to be seen if any of the latter two will be able to return at some point this season, but now with less than 10 games to go on the calendar before the offseason officially hits, the chances of either Markkanen or George coming back keep getting slimmer and slimmer.

For the extent either remains out, expect to see a good chunk of Ace Bailey being the primary scoring option as he has through his recent slate of games, along with an expanded role for their two-way and 10-day players down the bench who have gotten more minutes in recent weeks.

Denver Nuggets Injury Report

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OUT – David Roddy (two-way)

OUT – KJ Simpson (two-way)

As for the Nuggets, their injury slate remains clean. The only names out will be a pair of their two way signings in David Roddy and KJ Simpsons, while the rest of their roster is slated to be active.

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It’s a major change from what the Nuggets have been used to all season when factoring in their several injuries to key players lasting multiple weeks.

Nikola Jokic, Cameron Johnson, Christian Braun, Aaron Gordon, and Peyton Watson have all missed significant time at one point or another this season, but against Utah, they’ll have all systems go as they roll into the game on a three-game win streak.

Tip-off between the Jazz and Nuggets lands at 7 p.m. MT in Ball Arena.



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Denver, CO

‘The math just doesn’t work’: Little India to close in West Highland

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‘The math just doesn’t work’: Little India to close in West Highland


Little India will close its West Highland location in the coming months, owner Simeran Baidwan told BusinessDen.

It marks the end of a five-year run at the corner of 32nd Avenue and Lowell Street for the local Indian chain.

“We opened to preserve jobs because we didn’t have enough revenue,” he said of the pandemic days when restaurants were struggling.

The 3496 W. 32nd Ave. store helped keep dozens of chefs and servers in Baidwan’s “Little India family,” he said. Those workers will now have the opportunity to work at his other restaurants.

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“Five years later, the question isn’t whether people love the food,” he continued. “It’s whether independent restaurants can survive the compounding pressures and expenses, especially in Denver.”

Baidwan, who opened the first and still-running Little India at Sixth and Grant alongside his parents in 1998, singled out rising minimum wage, insurance, delivery fees and credit card processing fees as factors contributing to the closure.

“I think what it is, is a Denver restaurant industry story, it’s not just our one restaurant story,” he said. “I think what’s happened, in this day and time, is that life has become really expensive. There’s no margins. The math just doesn’t work.”

Being in the Highlands was also a factor, Baidwan said. The desirable location comes with high rent as well as skyrocketing property taxes he’s been responsible for. Add in dwindling consumer spending and Baidwan said his hand was forced.

“Busy doesn’t always mean profitable,” he said. “A lot of people look through the window and assume the restaurant is good, and we have the several locations too. But it just isn’t like that anymore.”

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Baidwan said there’s no plan to close his three other locations, in Cap Hill, Central Park and off Downing Street near the University of Denver. But that doesn’t mean he hasn’t been making tweaks.

At the original store off Sixth, he started operating 24/7 about eight months ago, something he’s thinking about for his other neighborhood restaurants. He’s also added entertainment, like jazz music and dancing, to help get more customers through the door.

Baidwan himself has also returned to the floor as a server — the first job he had at his parent’s store. But having the owner-operator model is difficult for his sprawling Little India empire since he can only be in so many places at once.



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How Denver’s Ballpark District now has ties to Chicago’s Wrigleyville

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How Denver’s Ballpark District now has ties to Chicago’s Wrigleyville


DENVER — A new Rockies season is on deck, with the team’s first game of the 2026 campaign set for Friday night in Miami. The home opener is next Friday at Coors Field.

It’s also a new season for the Ballpark neighborhood’s General Improvement District (GID) and its street ambassadors.

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Those ambassadors, dressed in maroon shirts and jackets, patrol the streets around Coors Field and the Ballpark neighborhood. They are tasked with helping with cleaning, maintenance, security, outreach to those experiencing homelessness, and general hospitality for neighbors and visitors.

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How Denver’s Ballpark District now has ties to Chicago’s Wrigleyville

This week, Denver7 spoke with Kate McKenna, who stepped in as the GID’s executive director last summer. McKenna said while she works in the office, the district has six full-time ambassador employees through programming partner block by block. She said the team patrols the area year-round, but adds staffing for big events like St. Patrick’s Day and Rockies home games.

McKenna comes to Denver from a similar role in Wrigleyville, the iconic neighborhood outside Wrigley Field in Chicago. She said that serves as a source of inspiration for the future, but adds that Denver’s ballpark neighborhood has its own unique advantages.

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“All of our businesses are independently-owned and operated,” McKenna told Denver7. “There is no chain, there is no commercial sort of large entity here in Ballpark that you’re going to see… To have a true small, hyper-local-owned economy is what really sets this district apart, both in Denver and then nationwide.”

Even after the Rockies set a franchise record with 119 losses in 2025, McKenna said the on-field product does not make the District’s job harder.

“I like to think win or lose, they’re the best neighbor you could possibly have, regardless of their season,” McKenna said. “They continually have one of the highest attendance rates for home games, as well as walk-up ticket sales.

McKenna said there continues to be good conversations between the district and local businesses. Property owners pay a fee based on property value that goes into the GID’s annual budget.

“Folks are coming out. Folks are patronizing local businesses. They’re bringing their families down here, and they’re enjoying their time, which is all you can really ask for in terms of community… Bringing people together is at the core of what we’re doing here.”

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Denver7 | Your Voice: Get in touch with Ryan Fish

Denver7’s Ryan Fish covers stories that have an impact in all of Colorado’s communities, but specializes in covering artificial intelligence, technology, aviation and space. If you’d like to get in touch with Ryan, fill out the form below to send him an email.





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