KANSAS CITY, Mo. — The National Association of Realtors announced Friday the association would agree, if approved, to a settlement that would eliminate the 6% standard commission for agents.
In November, KSHB 41 reported on the class action lawsuit filed by attorneys in Kansas City that involved 500,000 home sellers across Missouri, Kansas and Illinois.
The new settlement totals $418 million but awaits final approval by a judge.
When KSHB's Abby Dodge called 10 realtors Monday afternoon, none agreed to discuss the settlement.
Some said they did not want to comment on pending litigation, while others wanted to see how the housing market reacts before making a conclusion. Alternatively, some were told not to speak with members of the media.
However, most realtors Dodge spoke with over the phone fell into the second category, waiting to see what happens to the market before commenting.
Austin Leinbach said his family has sold a few homes without a realtor. He said they have a knowledge of the industry that makes “for sale by owner” transactions worth it, in his eyes.
“It’s one of those things, it definitely makes sense for the smaller houses,” Leinbach said. “You can justify paying that 6% fee. New builds nowadays are $600,000 or even higher sometimes. It’s a really high amount to justify paying.”
Leinbach admitted he has a sister who is a real estate agent who can help him in a pinch, but the main draw to “for sale by owner” purchases is the money he doesn’t spend.
“At the end of the day, that extra $6,000 in your pocket, or even higher, sometimes, realistically is very nice,” he said.
NBC News reported that if the settlement announced Friday is approved by a federal court, the standard 6% commission goes away. Thus, sellers would no longer have to make a compensation proposal to prospective buyers and their agents.
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