How Does the NAR Settlement Impact Buyers?

Wondering what homebuying will look like once the National Association of Realtors settlement is enacted into law? Many future shoppers have questions about this, and rightfully so. That’s why today, I’ll explain how your rights and interests as a buyer will be promoted, protected, and upheld with the coming industry changes which could start July 2024. These are three major ways that the NAR settlement will affect buyers:

1. Buyer Agent Commissions won’t be listed on the MLS. This is one of the biggest changes, the removal of cooperating compensation from the multiple listing service. The cooperating compensation refers to when the seller pays the buyer’s agent’s commission. Sellers may still make this payment, but the amount won’t be published in the MLS.

2. Buyer agency agreements will be more common. Just as sellers sign exclusive listing agreements with agents to sell their homes, buyers will be executing contracts detailing how long they will be working with their agent and the amount of commission that will be paid at the end of the deal. This should cause agents to be more transparent with their services provided and allow buyers to hold them more accountable in providing value that aligns with their fees. This should also make it easier for you to shop for agents, allowing buyers to more easily compare services and pricing. Buyer agency agreements are already required in some states, but once the settlement is put into motion, I expect them to be common practice nationwide.

3. Commissions will be negotiated. The payment of commission will be a more frequently discussed term between buyers and sellers. If you can get your seller to agree, you can still end up paying your buyer’s agent little or no commission. However, paying some buyers’ commissions will likely become more common. The good thing about it is it will encourage and facilitate these conversations about fees and commissions right up front, which ideally should have been practiced long before.

These changes are bound to bring improvements in the way houses are bought and sold. So, if you have any questions at all, or if you’re planning to buy or sell a home, reach out to me today by phone by calling 857-210-9925 or send an email to lou@c21revolution.com. I’ll be happy to answer any of your questions, and I look forward to talking to you!