The NAR Settlement: What Does it Mean To YOU?

by Ashley Raby

Everyone with an interest in the real estate industry has by now heard of the N.A.R (National Association of Realtors) laws uit settlement.

I will spare the grizzly and possibly unfounded items mentioned in the suit. I stand to reason that this class action suit was a inevitable jumping of a band wagon due to the toxic climate of the real estate space in our country.

There are a lot of rumors, interpretations and unknowns being spouted off. For the sake of simplicity and accuracy I am going to share what the results fo this 400Million + dollar settlement now means in effect July of this year, 2024.

We (Realtors/Brokers) no longer are allowed to advertise or disclose buyer agent commissions on the MLS (Multiple Listing Service) platforms that we use to list properties for sale. MLS is our bible, or yellow pages, our go-to for listings, data and trend in our respective areas.

HERE IS THE POINT:

1. If you are a buyer with an agent representing you, you will now have to do one of the following-

Pay your agent out of pocket as a closing cost.
Request a credit for closing cost in contarct to cover your agent representation fees
Hope that the seller is still willing to operate business as usual and offer compensation off of MLS
Ask for free services and free work by an agent
Save even more money to afford representation

2. If you are a seller...Dont get too excited about not having to pay buyer agents.

Buyers agents arguabuly do more foot work, more time spent, and more effort helping bring buyers to listings.
Buyer agents will very likely create their own perceptions of a listing if a seller isnt willing to negotiate or consider compensations.
If you continue business as usual, nothing will chnage and this wont affect the sale of your home.
If you choose not to compensate a buyers agent, you will narrow your buyer pool to only buyers able to have cash to pay for theri agent, drastically reducing your buyer pool.

This settlement will constrict the flow of the industry, causing more paperwork, positively more transparency, but more barriers for buyers. There is no right or wrong, but in terms of timing, it is bad timing in this economy to make it harder for buyers to buy homes.

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