What's going on with the NAR Settlement and how does it affect YOU?
You may have heard about the changes happening in real estate nationwide this month. The recent settlement with the National Association of REALTORS® (NAR) has introduced changes that impact homebuyers and sellers. I want to provide a clear explanation, as there has been a lot of confusion and misinformation about this topic.
Homebuyers, here is what the nationwide Real Estate Changes mean for you:
Agreement Clarity Before ANY Real Estate Agent can show you a home - you'll sign a written agreement with your Real Estate Agent. Make sure it reflects your negotiated terms with your agent and that you understand exactly what services and value will be provided and for how much.
Compensation Details The agreement that you sign must specify how your agent will be compensated. This can be a flat fee or a percentage of the sale - ensuring transparency.
Open House Exceptions You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
Seller Concessions The seller may agree to offer concessions which can be utilized towards paying the buyer's agent. This is permitted but the offer cannot be shared on the Multiple Listing Service (MLS).
The commission is negotiable. It always has been. The way we communicate it has changed. In the state of PA, we have always had buyer agency agreements. Therefore, this is not new for us. Only now, the agent and buyers will need to sign the agreement prior to touring any homes to ensure the agent and buyer understand and agree upon what the agent will be paid. The agent can negotiate that the seller of a property that you are interested in purchasing offers concessions to pay the real estate agent fee.
Sellers, here is your side of the transaction:
The commission is something that is discussed and negotiated before signing the listing contract. You can offer to pay compensation to the buyer's broker and that will be disclosed to the buyer's agent before a showing.
Offering an incentive/concession to the buyer's side makes good business sense. This allows for more buyers to be able to afford to purchase your home.
I am here to answer any questions you may have about this process and how it affects you. Feel free to reach out and we can discuss further. The biggest thing is, not to be concerned. Homeowners move and buyers buy. The world of real estate will continue, and everyone will become more comfortable with the process.
I am your local real estate expert ready to guide you and provide confidence in your real estate journey. Let's connect to discuss your plans of buying + selling.