One of the people who successfully sued the National Association of Realtors (NAR) to change real estate commissions has co-founded a new real estate startup.
It all began in 2017 when Josh Sitzer and his wife listed their home for sale in Kansas City. The couple was frustrated by the fact they had to pay a 3% commission to a buyer’s agent.
“Due to the anti-competitive structure of the industry before the lawsuit, I, as the seller, was effectively coerced into paying 3% of my home’s selling price to a buyer’s agent in order to achieve a successful sale,” he told TechCrunch. “While hiring agents is a choice for many, I don’t believe anyone should be bullied into paying for undesired services due to unfair industry practices,” he added.
Sitzer shared his frustration with his neighbor, who happened to be a lawyer familiar with the subject matter. By 2019, he and other homeowners had filed a class-action lawsuit (Moehrl et al. v. National Association of Realtors, et al.) against the NAR. They received a verdict last year that resulted in a settlement earlier this year that will radically change how home real estate is sold.
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