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Up To Date

How a lawsuit brought by Kansas City homeowners could transform the real estate industry

By Steve Kraske,
Claudia Brancart
Published April 17, 2024 at 4:10 PM CDT
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Researchers say that large real estate companies are buying into Kansas City’s single-family housing stock, creating a heightened demand for homes and a more expensive real estate market for homebuyers.
Dominick Williams
/
Kansas City Beacon
The antitrust lawsuit, along with a handful of others against N.A.R, were settled this March when the group agreed to pay $418 million in damages and amend its commission rules, which some experts say could transform the housing market.

A group of Kansas City homeowners sued the National Association of Realtors in 2019 over what they said were inflated commission fees. The powerful trade group, which denies wrongdoing, agreed in March to pay $418 million in damages and to adjust its commission practices, which could transform the way Americans buy and sell homes.

If you’ve ever sold a home, you’re probably familiar with the standard 6 percent sales commission that goes to the agents. But are you really required to pay 6 percent?

Not according to the National Association of Realtors, the powerful trade group. It says its commissions have always been negotiable. But that wasn’t clear to a group of Kansas City homeowners who sued N.A.R. in 2019, saying they were forced to pay inflated fees.

The antitrust lawsuit, along with a handful of others against N.A.R, was settled in March when the group agreed to pay $418 million in damages and amend its commission rules, which some experts say could transform the housing market.

“We were just looking out for our best interests, but we were up against this huge conglomerate,” lead plaintiff Rhonda Burnett told KCUR’s Up To Date. “I think that what we did is dramatic, but I do think that the effects are going to be years down the road.”

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Up To Date PodcastKansas CityMissourireal estateHousinghousing marketlawsuitJurycourts
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Steve Kraske
When I host Up To Date each morning at 9, my aim is to engage the community in conversations about the Kansas City area’s challenges, hopes and opportunities. I try to ask the questions that listeners want answered about the day’s most pressing issues and provide a place for residents to engage directly with newsmakers. Reach me at steve@kcur.org or on Twitter @stevekraske.
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Claudia Brancart
As a producer for Up To Date, I create sound-rich talk show segments about the individuals and communities that call Kansas City home. Whether it’s a poet, a business owner or a local lawmaker, I seek out diverse voices to help break down the biggest stories of the day. After listening to the show, I want Up To Date listeners to feel informed and empowered to make decisions in their daily lives. You can reach me at claudiab@kcur.org
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