National Realtor Settlement Could Impact Real Estate Market In Green Country

The National Association of Realtors has agreed to pay more than $400 million to settle several lawsuits filed by home sellers.

For decades, the Association required brokers listing homes for sale to make an offer of compensation up front, which was usually six percent, split between the seller’s broker and the buyer’s agent.

If the settlement is approved, that standard 6 percent commission goes away.

The settlement still has to be approved by a judge- but if it goes through, it means that instead of the seller paying both real estate agents like in the past, the buyer might be on the hook for their own agent.

This ruling would cause a major shift in the way people buy and sell homes.

Carin Johnson has moved several times, and says it’s been a little harder than normal to buy and sell due to the way the housing market has been in the past couple years.

"There have been a few that we wanted, and they sold quicker than what we could offer on them, so that was a little disappointing, but in the end, we ended up finding one that we really do love,” said Johnson.

The National Association of Realtors says this settlement could possibly bring down the prices of homes because the seller wouldn’t have to pay both their agent and the buyer’s agent.

Realtors like Cindy Morrison say that might not be the case.

"But I think, if now, they're saying, that the seller doesn't have to pay the buyer's agent anymore, I very much doubt that when you do comps for a neighborhood and come up with a price, that the seller is going to say, 'okay, we're just going to discount that three percent,”’ said Morrison.

Morrison says the settlement is confusing, and there is a lot of uncertainty.

"It was kind of a handshake behind doors,” said Morrison. “In the '80s, the government said, 'we don't think that's right, we think it needs to be open and honest what that commission is,' so then it was listed on MLS. So now they've reversed themselves and said we're not supposed to list it on MLS. So again, it becomes a private conversation."

Some worry buyers might not go through a real estate agent because they would now pay that commission, but Johnson says she still thinks it's a good idea.

"They know the market better than anyone, and we've bought and sold many times in different states, and that's something we've always done; we need a good realtor,” said Johnson.

The settlement still has to be approved, and there are uncertainties about how it might affect VA or Native American loans.