Navigating the New Real Estate Landscape with the McGrail Team

 

 

 For Home Sellers: Understanding the Impact of the NAR Settlement

 

As a home seller, you have a variety of options when it comes to listing your property. REALTORS® have always been a trusted source of guidance, ready to help you navigate the complexities of the home-selling process and make the best choices for your situation. Recently, the National Association of REALTORS® (NAR) reached a settlement that introduces important changes to broker commissions, directly benefiting sellers. Here’s a clear breakdown of what these changes mean for you:

 

 

1. Choice of Compensation: You still have the option to offer compensation to buyer brokers. This can be a strategic way to market your home and make your listing more attractive to potential buyers.

 

2. Mandatory Disclosure: Your agent must clearly disclose and obtain your approval for any payment or offer of payment that a listing broker intends to make to another broker representing buyers. This disclosure must be provided in writing before any payment is made or agreement reached, and it must specify the amount or rate of such payment.

 

3. Off-MLS Advertising: While you can still choose to offer compensation, it can no longer be included on a Multiple Listing Service (MLS). MLSs are local platforms where buyer and listing brokers share information about properties for sale.

 

4. Buyer Concessions: As a seller, you can still offer buyer concessions (such as closing cost assistance) on the MLS, ensuring your listing remains competitive.

 

These settlement changes will go into effect on August 17, so it’s important to understand how they impact your home-selling strategy.

 

 

While the settlement brings about several new practices, some key aspects of the home-selling process remain unchanged:

 

1. Agent Support and Ethics: REALTORS® continue to be a reliable resource, ethically obligated to work in your best interest throughout the selling process. Their goal is to help you achieve the best possible outcome.

 

2. Negotiable Compensation: The compensation for your agent remains fully negotiable. If your agent is a REALTOR®, they must follow the REALTOR® Code of Ethics, ensuring transparent and clear discussions about compensation. When selecting an agent, it’s important to ask questions about their fees and discuss what you might want to offer to buyers.

 

3. Your Choices Matter: Ultimately, you have choices. It’s crucial to work with your agent to explore all the available options when selling your home. Understanding these choices will empower you to make the best decisions to meet your needs.

 

 

Buying a home is one of the most significant financial transactions most people will ever undertake. REALTORS® are a trusted source of advice, ready to guide you through the homebuying journey and help you make the best decisions for your needs. The recent NAR settlement also introduces changes that benefit homebuyers. Here’s what you need to know:

 

 

1. Written Agreement Requirement: Before touring a home, you will need to sign a written agreement with your agent. This agreement should clearly reflect the terms you’ve negotiated and outline the services and value your agent will provide, along with the associated costs.

 

2. Detailed Compensation Disclosure: The buyer agreement must include a specific and clear disclosure of the amount or rate of compensation your agent will receive or how this amount will be determined. This compensation must be objective and cannot be open-ended.

 

3. Compensation Limits: The agreement must also include a term that prohibits your agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in your buyer agreement.

 

4. Negotiable Broker Fees: The agreement must conspicuously state that broker fees and commissions are fully negotiable and not set by law.

 

5. Applicability to Virtual Tours: These written agreements apply to both in-person and live virtual home tours.

 

6. Exceptions for Open Houses: You won’t need a written agreement just to speak with an agent at an open house or inquire about their services. However you will be asked to sign a disclosure form confirming your representation status. 

 

7. Seller-Offered Compensation: The seller may still agree to offer compensation to your agent, but this cannot be shared on a Multiple Listing Service (MLS). However, you can still accept concessions from the seller, such as offers to pay your closing costs.

 

These practice changes will also go into effect on August 17, making it essential for homebuyers to understand how they influence the buying process.

 

 

Despite these changes, the fundamental role of REALTORS® remains the same:

 

1. Ethical Guidance: REALTORS® continue to be dedicated to helping you navigate the homebuying process, working in your best interest every step of the way.

 

2. Negotiable Compensation: Your agent’s compensation remains negotiable. REALTORS® are bound by a Code of Ethics, which ensures transparent and clear discussions about compensation. Be sure to ask questions and fully understand the services you’re receiving.

 

3. Empowered Choices: You have the power to make informed decisions. Working closely with your agent to explore all available options will help you make the best choices when purchasing your home.