04/15/2025
I have not posted in a minute. I’m going to do better. But to be honest, after the changes that ensued after the National Association of Realtors [NAR] settlement last year, I retreated. While I still have my own thoughts about the settlement, I still believe in transparency and commitment to the folks that I represent. I think that it was a little prod to elevate our practices, which is always a good thing.
I have received quite a few questions from buyers, sellers, family, friends, etc. regarding those changes, so I will address those here for those of you that may have the same questions.
Most of you heard about the NAR lawsuit, settlement, and changes in the real estate industry. However, the media’s narrative was a bit different and there was so much misinformation out there. In 2023, NAR settled a class action lawsuit revolving around commission structures, transparency, and offering of commissions to buyer’s agents through the MLS [Multiple Listing Service]. In August 2024 NAR implemented some changes surrounding agent commissions, who is paying them, and how that is communicated [no longer through the MLS].
The lawsuit in laymen’s terms basically centered around claims that NAR’s practices inflated commissions due to how buyer’s agents were compensated. Listing agents can no longer offer commission on MLS to a buyer’s agent as we previously could. But, we can still offer it. I think the best way to explain is this: The WHAT didn’t change…the WHEN and HOW did. The commission [the WHAT] will stay the same. Buyers are still going to have representation. Sellers are still going to have listing agents. There is still going to be commission.
Compensation was decided by seller and listing [HOW] agent when the seller was signing that listing agreement. Listing agent and seller were defining what the buyer’s agent was going to get paid. Now it will happen when an offer is received [WHEN]. Buyers are required to sign a buyer’s agreement that defines the commission that they agree to pay if not offered by a seller. Understand that a buyer’s agreement was something that we, as realtors, should have had all buyers sign before the first showing. Many realtors didn’t and now we do not have a choice. A buyer will indeed have to sign a buyer’s agreement before showings ensue. This ensures transparency regarding services provided and compensation.
Keep in mind, that there are multiple ways that a buyer’s agent can be compensated. And on my end, I work hard to negotiate the best deal for the client[s] that I represent. Many sellers are still offering buyer’s agent compensation to be competitive. There are almost always concessions and negotiations in a real estate transaction. These will continue…only the HOW and WHEN changed.
After reading my dissertation of a post, if are thinking about buying or selling a home and have any questions before you do, shoot me a message or post your question here! Likely someone else has the same question!
