The recent settlement involving the National Association of Realtors (NAR) has sparked conversations throughout the real estate industry. With significant changes impacting how agents, buyers, and sellers navigate the market, it’s important to stay informed. Here are 5 key things you should know about the NAR settlement and what it could mean for the future of real estate transactions.
1. Written Buyer Agreements
Agents must now have a written agreement with homebuyers before showing any properties. This agreement will allow full transparency about services provided and commission.
2. Commission Transparency
Real estate agents are required to clearly disclose the amount ($) or percentage (%) of commission they will earn and who is responsible for paying it. These terms must be agreed upon in writing.
3. MLS Listings
Offers of compensation for agents can no longer be listed on the MLS. However, agents can still discuss general information about commission on their personal website, but not on any platform or site that uses MLS data, such as major home search portals.
4. Negotiability of Fees
Both buyer and seller agent fees remain fully negotiable. Just so you know, these fees have always been negotiable. The settlement only emphasizes the importance of buyers and sellers understanding that commissions are not fixed by law.
5. Impact on Real Estate Agents
Real estate agents must ensure that their compensation is detailed and transparent in all contracts. The settlement does not restrict agents but promotes better disclosure practices. Agents will need to communicate more openly about their commission structure, ensure they have a binding buyer-agent agreement in place.
