We wanted to provide some clarity on the recent NAR settlement that has been making headlines, as the media coverage may be sensationalizing certain aspects. We're sharing this to debunk the misinformation and ensure our clients remain well-informed about all things real estate.
Here's What We Know Right Now
- The NAR agreement does not prohibit sellers from making offers of compensation to buyers' agents; it only removes the mandatory requirement that such offers be made and displayed on the MLS.
- NAR will require buyer agents to use representation agreements with their clients, which we believe will bring greater consumer transparency and ensure buyer agents are compensated for the valuable services they provide.
Headline:
Home buyers and sellers won't have to pay a standard commission anymore.
Reality:
There is no standard commission - commissions are negotiable, and they always have been. These changes are simply going to make the commission process more transparent, ensuring clarity between the buyer agent and their clients from the outset.
Headline:
Sellers don't need to offer compensation to buyer's agents.Reality:
Choosing to help a buyer with commission or closing costs is solely the seller's decision. Many sellers see value in doing so as it can make their property attractive to a wider pool of buyers by helping to alleviate out-of-pocket costs that can be challenging - especially for first-time buyers. Sellers also recognize that buyer's agents often facilitate a faster and smoother closing.Headline:
Buyers no longer need agents.Reality:
Real estate agents help consumers successfully navigate one of life's most expensive and impactful transactions - providing invaluable advocacy, support, and expertise.If you have further questions or would like to have a deeper conversation about what you're hearing in the media, please contact us or reach out to a CB sales professional at your nearest campus.
