The National Association of Realtors 8/17/2024 Settlement - What does it mean to Homebuyers and Sellers

Homebuyers: What the NAR Settlement Means for You 

Buying a home is a big deal—and having a good real estate agent by your side can make all the difference. Thanks to a recent settlement by the National Association of REALTORS® (NAR), there are a few important changes to how things work when you’re buying a home. These changes are designed to give you more clarity and control. Here's what you need to know:

What’s New:

• You’ll sign an agreement with your agent before seeing homes.
  This agreement explains what your agent will do for you, what you’ll pay them, and how everything works. Make sure you understand and agree to the terms before signing.
• That agreement must include clear details about how your agent is paid.
  It has to show the exact amount or method (like a flat fee, hourly rate, or percentage) and cannot be vague or open-ended.
• Your agent can’t be paid more than what you agree to.
  Whatever is in the contract is the maximum they can receive—no surprises later.
• It must also state that all fees and commissions are negotiable.
  You’re allowed to discuss and agree on what makes the most sense for you.
• This agreement is required whether you’re touring homes in person or virtually.
  But don’t worry—if you’re just chatting with an agent at an open house or asking general questions, no agreement is needed.
• Sellers can still offer to pay your agent, but that info won’t show up in MLS listings.
  (MLS = the database agents use to share homes for sale.)
• You can still ask sellers to cover things like your closing costs.
  That hasn’t changed.

These updates started on August 17, 2024.

What Hasn’t Changed:

• REALTORS® still work for you and must put your best interests first.
• You’re still in charge of deciding how your agent gets paid—nothing is set in stone.
• You have choices. Talk openly with your agent so you know what services you’re getting and what your options are.

Sellers: What the NAR Settlement Means for You 

Selling your home can feel overwhelming—but a trusted real estate agent who is a REALTOR® can help guide you through every step. A recent settlement by the National Association of REALTORS® (NAR) has made some changes to how agents are paid, giving sellers like you more control and transparency. Here's what it means for you:

What’s New:

• You still have the option to offer payment to a buyer’s agent.
  This can help attract more buyers, but it’s completely up to you.
• Your agent must clearly explain any payment being offered to a buyer’s agent—
  and you must approve it in writing before anything is promised or paid.
• If you do choose to offer compensation to a buyer’s agent, it won’t appear on the MLS anymore.
  (The MLS is the system agents use to share listings with each other.)
• Your home can still be marketed in other ways—like on social media, flyers, or real estate websites—even if that compensation offer isn’t listed on the MLS.
• You can still offer buyers other benefits, like help with closing costs, and these can still be listed on the MLS.

These updates took effect on August 17, 2024.

What Hasn’t Changed:

• REALTORS® still work in your best interest and are held to a Code of Ethics.
• You can still negotiate your agent’s fee—nothing is set in stone.
• You have options! Talk to your agent about what makes sense for you and your goals.

For more info, visit facts.realtor