$418 Million Dollar NAR Commission Settlement
An important development in the real estate industry that will significantly impact the way consumers purchase homes. Recently, the National Association of Realtors reached a monumental $418 million settlement, introducing transformative changes that will affect both buyers and sellers alike.
One of the key changes mandated by this settlement is regarding compensation for buyer's agents. As per the agreement, listings on multiple service listings can no longer advertise compensation for buyer's agents. This means that buyers will/may now be responsible for covering any buyer's agent compensation fees.
Additionally, MLS participants (agents) working with buyers are now required to enter into a written buyer broker agreement. These changes are scheduled to take effect in mid-July 2024 and will have profound implications for consumers.
For buyers, the inability to finance commissions means that banks will not loan on commissions, directly impacting their purchasing power when seeking mortgage loans. Furthermore, despite these changes, the expertise of professional real estate agents remains indispensable, especially during negotiations throughout the transaction.
While home prices are not anticipated to decrease, sellers stand to save on commissions previously paid to buyer's agents. However, they will/may need to factor in these fees when purchasing a home if they opt for representation.
In light of these significant changes, it is crucial to seek guidance from expert realtors to navigate this evolving landscape successfully. Whether you are a buyer or a seller, we are here to assist you in tailoring this process to meet your specific needs.
Please do not hesitate to reach out to us with any questions or concerns you may have regarding these changes or any other real estate matters.
National Association of REALTORS®
