Yesterday, the practice changes following the National Association of Realtors Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions was implemented across the country.
What does that mean for you, the consumer? For many of you, buying a home is one of the largest financial transactions you will undertake and having a Realtor to help you navigate this journey is critical to that process. This settlement has led to changes that benefit you and I want to clearly lay those out for you.
First, and the most significant change is that The National Association of Realtors (NAR) has agreed to put in place a new rule prohibiting offers of compensation on a Multiple Listing Service (MLS). Offers of compensation could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals. And sellers can offer buyer concessions on an MLS.
Secondly, While NAR has been advocating for the use of written agreements for years, in this settlement we have agreed to require MLS Participants working with buyers to enter into written agreements with their buyers before touring a home. This change will increase transparency, outlining how much a buyer broker will be paid and by whom that payment might be received.
NAR has long maintained—and continue to believe—that cooperative compensation and NAR’s policies are good things that benefit buyers and sellers. They promote access to property ownership, particularly for lower- and middle-income buyers who can have a difficult-enough time saving for a down payment. With this settlement, NAR is confident it and its members can still achieve all those goals.
Licensees who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.
Compensation for your real estate professional is not set by law and is fully negotiable. Additionally, if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and understand what services you are receiving.
You have choices. Work with your agent to understand the full range of these choices when buying a home, which will help you make the best possible decision for your needs.
