Want to know more about the NAR Lawsuit?
Recently, we’ve all been inundated with headlines regarding the National Association of Realtors’ agreement to end litigation of claims brought on behalf of home sellers. As part of the settlement (yet to be approved by the courts) the NAR agreed to prohibit offers of broker compensation on the Multiple Listing Service. The association also agreed to require MLS participants working with buyers to enter written agreements with clients.
The changes are expected to go into effect in mid-July 2024.
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Some articles addressing the agreement provide factual breakdowns, others try to predict the future, and some, are downright misleading. Let’s take a closer look beyond the headlines to separate fact from fiction:
FICTION
The NAR settlement will reduce the cost of property sales, as sellers will no longer compensate buyer’s agents.
FACT
Like other professionals, an agent’s services are not free. Should sellers choose to compensate only their agent, buyers will now have to pay for their own agent.
FICTION
The settlement will cause home prices to decrease, making homeownership more affordable.
FACT
Home prices are determined by supply and demand. Home values in our region have risen significantly recently. Understandably, sellers want to realize those gains and are not going to lower the price of their home regardless of how buyer and seller agents are compensated.
FICTION
Sellers may no longer provide buyer’s agents compensation.
FACT
Offering to pay a buyer’s agent’s commission has always been the seller’s choice. Sellers may continue to offer compensation as they pursue the best outcome for the sale of their property.
FICTION
The 6% commission on buying or selling a property is a thing of the past.
FACT
Commissions on property sales have always been negotiable. Sellers and listing agents may continue to offer compensation outside of NAR-affiliated Multiple Listing Services.
FICTION
Sellers no longer need to
compensate buyer’s agents.
FACT
Offering buyer agent compensation is a choice that should be made by a seller in consultation with their listing agent.
FICTION
Home buyers will no longer need a buyer’s agent.
FACT
Buying a home is one of the most significant financial transactions most people will ever make. Buyer’s interests are best protected by a licensed residential real estate agent.
We bring extensive value to your transaction (think negotiation skills, contract expertise, trusted resources, seasoned guidance), providing professional services worthy of compensation. When you select a us to represent your residential real estate needs, you’re benefiting from our education, experience and expertise.
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This is a pivotal moment in our industry, but rest assured, our commitment to you and your residential real estate needs remains steadfast.
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For more information and to stay up-to-date on the NAR lawsuit and resolution, please fill out the form below.