04/18/2024
I've stayed relatively reserved regarding the National Association of Realtors (NAR) Settlement, as many of the alterations align with typical practices in Illinois. Nevertheless, substantial changes loom ahead for much of the nation. Let's discern fact from fiction.
❌ FICTION: Buyers won't need a buyer's agent anymore.
✅ FACT: Professional real estate agents remain crucial for buyer protection. When engaging in one of life's major financial transactions, having a trusted advisor is essential. Starting July 2024, signing a buyer representation agreement will be mandatory to view homes with an agent. It's evolving from a suggestion to a requirement. For my team and me, this isn't a new practice; we've required buyer broker agreements with our clients for years, so this adjustment doesn't affect our operations.
❌ FICTION: The standard 6% commission for buying or selling a home is obsolete.
✅ FACT: Real estate commissions have always been negotiable. Listing agents and sellers retain the flexibility to offer compensation beyond NAR-affiliated MLSs.
❌ FICTION: Sellers won't have to compensate buyer's agents anymore.
✅ FACT: Seller compensation to buyer's agents remains a decision made in collaboration with their listing agent. Negotiability has always been a fundamental aspect. Everything is open to negotiation—this was never in doubt.
❌ FICTION: The NAR settlement heralds a revolutionary shift in home buying and selling.
✅ FACT: Real estate professionals will continue guiding buyers and sellers through this complex process. While some may choose to navigate it alone, most opt for expert assistance for good reason.
❌ FICTION: Sellers are now banned from offering buyer's agent compensation.
✅ FACT: The decision to offer buyer's agent compensation has always rested with the seller. They can still choose to provide compensation if it enhances the likelihood of a successful sale. As with most things, optimal outcomes often come at a cost. 🆓
Haley Levine Wills
