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There was earth-shaking news in the world of residential real estate on Friday, as the National Association of Realtors agreed to end its long-standing 6% commission for more of a free market model. It’ll probably mean the entire real estate industry is going to be far less lucrative, and Zillow, for instance, lost about 14% of its value instantly, on huge volume.

You can see Zillow is worth less than a quarter what it was a few years ago, and I’m sure it’ll just keep shrinking.

I’ve always thought the 6% commission was ludicrous. Typical houses where I live cost $5 million. That means $300,000 in real estate fees, just for someone to hand you a stack of paper to sign (of contracts that no one in human history has ever, ever read).

It’s simply preposterous, and I’m glad to see this is being taken out.

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