The National Association of REALTORS® (NAR) recently reached a groundbreaking settlement that could significantly impact home buyers and sellers. Under the settlement, NAR will no longer require sellers to pay buyer agents’ commissions when selling their homes. This practice, which has been around for nearly a century, will change, as buyers may now be required to pay the buyer’s agent/brokerage’s compensation.
Offers of compensation between real estate professionals are no longer allowed on MLS platforms so buyers must now enter into written agreements with agents before touring a home. These agreements must include clear details about compensation, ensuring transparency for consumers. However, sellers can still offer compensation outside of an MLS. Negotiations between buyers and sellers may become more intricate as buyers and sellers will need to discuss compensation directly, leading to various outcomes and potentially slowing down the selling process.
Remember, NAR has not admitted to any wrongdoing, and the settlement aims to enhance transparency and empower consumers in real estate transaction. Time will tell.