The NAR Settlement And What It Means For You

As many of you may have seen in the headlines this past week, the recent settlement with the National Association of Realtors (NAR) brings changes to our industry. But change is normal—it gives us as agents the opportunity to grow, evolve, and serve our clients the best we can.

The Verdict

In case you haven’t heard, the ruling in the Sitzer / Burnett vs NAR (the National Association of Realtors) lawsuit determined that NAR was guilty of colluding to keep real estate commission rates artificially high. SO WHAT DOES THIS MEAN FOR YOU?

What this means...

Moving forward, starting in July 2024, commission rates for buyer’s agents will not be allowed to be listed in the MLS

Buyers must have a written buyer’s agency agreement signed before seeing a home

Contracts made between now and July will remain as-is

What the NAR ruling means for buyers

Buyers will be required to enter into a buyer’s agency agreement before viewing a property. Therefore, conducting thorough research beforehand and choosing an agent you trust will be crucial. Additionally, buyers may be responsible for covering part or all of their agent’s commission, so it will be important to understand your options.

What the NAR ruling means for sellers

Sellers may gain more control over commission negotiations. It will be important for sellers to understand the value their agent brings and their specific strategy for attracting qualified buyers. It’s important to remember that offers of cooperative compensation (buyer’s agent commission) can still be made OFF of the MLS.

Does this mean the 6% commission is going away?

Don’t listen to the media headlines. Commissions have always been negotiable. This settlement may just be the catalyst for more innovation, and we may see new technologies and business models emerge that could make the buying / selling process that much better.

Don’t Panic!

From now until July, it is business as usual. Nothing has been approved by the courts yet. My ultimate goal is to ensure that your home buying/selling journey is as smooth and stress-free as possible. I am constantly learning and will be collaborating with top agents across the county to ensure that both buyers and sellers are protected moving forward!

Rest assured, I am staying informed and adapting to these developments to continue providing my clients with exceptional service and guidance, whether buying or selling.

Have questions or concerns? Shoot me a message, I'd be happy to continue this conversation!

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