In the ever-evolving real estate landscape, the recent settlement with the National Association of REALTORS® (NAR) marks a significant shift that directly impacts both home buyers and sellers (and also works the same for leases!). These changes are designed to bring more transparency and clarity to the home buying and selling process, ensuring you understand the value your real estate agent brings and how they are compensated.

For Home Buyers:

If you’re in the market for a new home, here’s what the settlement means for you:

1. Written Agreements Before Touring: Before you even step foot inside a potential new home (or virtual tour), you’ll be required to sign a written agreement with your agent. This agreement will outline the terms of your relationship, including the services your agent will provide and how much these services will cost.
2. Clear Compensation Details: The agreement must disclose the compensation your agent will receive making the commissions transparent from the get-go. Commission has always been negotiable and still remains that way today. 
3. Negotiating Seller Concessions: You still have the ability to negotiate with the seller to cover some or all of your agent’s compensation, just as before.

For Home Sellers:

If you’re selling your home, here’s what you need to know:

1. MLS Listings Changes: Properties listed on multiple listing services (MLS) can no longer include an offer of compensation to the buyer’s broker. However, you can still communicate through the MLS that you’re open to making concessions to buyers, such as credits at closing that they can use as they see fit.
2. Negotiating Broker Compensation: If a buyer requests that you cover their broker’s compensation as part of their offer, you can negotiate this just as you would any other concession. 

These changes aim to create a more transparent real estate process, ensuring that all parties are fully informed and can make the best decisions possible. Whether you’re buying or selling, understanding these new rules will help you navigate your real estate journey with confidence.

If you have any questions or need further clarification, feel free to reach out. Our team is here to help you make informed decisions every step of the way!