The National Association of Realtors (NAR) agreed to pay $418 million in damages after settling a lawsuit in which a federal jury ruled that the organization had conspired to artificially inflate commissions. With sweeping changes to home sellers' operations, the market may record a paradigm shift.

Mphasis Digital Risk Founder Jeff Taylor and Pulte Capital CEO Bill Pulte join Yahoo Finance to discuss the broader implications of the NAR settlement.

Pulte claims that the new rules the settlement would enact may encourage "creative thinking" in the market: "You could see potentially people reduce their commissions. You could also see I think some creative thinking like the builders have done...The builders have gone in and bought down mortgage rates as a means of making their homes, meaning new homes, more attractive for home buyers."

To Taylor, the settlement is a "game changer" for commissions: "There's always been this perception it's 3% and 3%, 6% or 5%, depending upon where you are. But now as you present that contract, look, theoretically the selling agent could say, we're going to charge 3% but we're not going to provide anything for the buyer on that 3%. How is that going to affect that behavior? That could change a lot going forward."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

- Well $418 million settlement by the National Association of Realtors is expected to usher in sweeping reforms to the real estate market. This settlement came after a federal judge ruled that an existing rule requiring compensation to a buyer's agent artificially inflated housing fees. To discuss the implications for buyers and sellers, let's bring in Bill Pulte, he's Pulte Capital CEO and Jeff Taylor, emphasis a digital risk founder and Mortgage Bankers Association. Gentlemen good to have both of you on today.

Jeff-- Bill let me start with you first by talking about-- just sort of put this in context for us. I mean, we keep hearing these sweeping reforms likely to happen. This is a significant shift within the real estate market. Put it in context for us.

BILL PULTE: Well the reality is the home is made up of obviously lumber and drywall and roofing and all kinds of materials and stuff. A big part of it, too is fees, taxes, title insurance, mortgage insurance to the extent that one has all of those things. And then another thing is the realtor fees.

Now, what's so interesting about this landmark thing is that now, basically, the 6%, in my opinion, is really up for grabs. And you're going to see people become very creative, you're going to see companies become very creative as a way towards being more competitive. And I think in an inflationary environment, all creativeness, in my opinion, is welcome. And I think that this is potentially very good for consumers.