There’s been a lot of buzz lately about the proposed settlement from the National Association of Realtors (NAR). Our team has been anticipating these potential changes for a while now, and I wanted to clear up some of the misinformation surrounding our industry.
The NAR Settlement in a Nutshell
On March 15th, 2024, The National Association of REALTORS proposed a settlement that involves a financial payout and some adjustments to how we operate. Here’s the breakdown:
• MLS Changes: Buyer Agent commission offers won’t be displayed on listings anymore, but sellers can still offer them directly.
• Buyer Representation Agreements: Buyer Agents will need written agreements with their clients, just like Listing Agents do.
What This Means for You
Assuming the settlement is approved, these changes are expected to take effect around mid-July 2024. There might be concerns about transparency, but sellers can still offer buyer agent compensation outside of the MLS listing.
Another key point – buyer Agents will be required to have signed agreements with buyers, just like Listing Agents have listing agreements.
Addressing Misconceptions
There’s a misconception that everyone charges a flat 6% commission. This simply isn’t true. Commissions vary depending on location, brokerage, and the specific property. Our industry doesn’t set universal rates – we focus on our own services, experience, and market share.
The settlement also won’t impact housing costs. Home prices are driven by supply and demand in a free market, and this settlement doesn’t address those factors.
Existing Contracts & Buyer Protection
Existing contracts likely won’t be affected before July. Once the settlement is finalized, the main changes will be the removal of Buyer Agent commission offers from MLS listings and the requirement for written buyer representation agreements.
When it comes to buyer representation, it offers crucial protection. Buyer Agents act as fiduciaries, which means they’re legally obligated to prioritize your best interests. These duties include loyalty, confidentiality, disclosure, accountability and reasonable care.
Do You Need Buyer Representation?
While not mandatory, buyer representation is highly recommended, especially in a competitive seller’s market. A Buyer Agent provides expert guidance on offer strategies, market analysis, and negotiation – all crucial aspects of securing your home for the right price.
Coastal Point Properties Top Focus
At Coastal Point Properties, our top priority is serving our clients. We’re committed to providing exceptional service throughout your real estate journey, one of life’s most significant transactions. We’ll keep you updated as we learn more about the settlement and the evolving industry landscape. Feel free to reach out if you have any questions.
Best Regards,
Sofia Naoom
Owner/Broker
Image provided by Godaddy.com. Blog written with the help of AI.
