Small Changes, Better Results

Proposed NAR settlement affects future home buyers and sellers

In a landmark move, the National Association of Realtors has announced changes to enhance transparency and fairness in real estate transactions nationwide. If approved, the changes would go into effect as soon as Summer of 2024.

For sellers, the changes mean that your listing agent can no longer post offers of compensation to potential buyers’ agents on a Multiple Listing Service (MLS), such as our local RealTracs platform. To be clear, sellers can still incentivize buyers’ agents as a part of the transaction, but advertising a specific rate directly on the MLS listing would not be permissible.  This change helps everyone understand a well-established truth: a Realtor’s professional fee is not set in stone but negotiable.

For buyers, the changes would also help you establish your agent’s compensation up front in the home buying process, rather than waiting until later or having it buried in paperwork.  To do this, you and your agent must first sign a standard Buyer Representation Agreement before you can go out on a home showing.  The agreement outlines your agent’s responsibilities, and looking at it up front presents you with a clearer way to negotiate your agent’s professional fee before you get too far into the purchase process.  Agents can still charge rates according to the services they provide, and buyers can still work with sellers to include those professional fees in the purchase price of a home.

As Realtors, our greatest responsibility is to safeguard our clients’ best interests during their biggest transactions.  And our exhaustive Code of Ethics tasks every Realtor with acting transparently, respectfully, and truthfully. These new rules help us do just that, boosting trust and confidence in the real estate world.

For further information or assistance navigating these changes, please reach out. Your confidence and success in real estate moves will always be my top priority!