NAR Settlement-We R Here for You

Understanding and navigating the NAR settlement. Effective August 2024

What Does The NAR Settlement Mean for Homebuyers?

You will sign a written agreement with your agent before touring a home.
Before signing this agreement, you should ensure it reflects the terms you have negotiated with your agent and that you understand exactly what services and value will be provided, and for how much.
The buyer agreement must include four components concerning compensation:

A specific and conspicuous disclosure of the amount or rate of compensation the real estate agent will receive or how this amount will be determined.
Compensation that is objective (e.g., $0, X flat fee, X percent, X hourly rate)—and not open-ended (e.g., cannot be “buyer broker compensation shall be whatever the amount the seller is offering to the buyer”).
A term that prohibits the agent from receiving compensation for brokerage services from any source that exceeds the amount or rate agreed to in the agreement with the buyer; and,
A conspicuous statement that broker fees and commissions are fully negotiable and not set by practices.

Written agreements apply both to in-person and live virtual home tours.
You do not need a written agreement if you are just speaking to an agent at an open house or asking them about their services.
The seller may agree to offer compensation to your agent. This practice is permitted but the offer cannot be shared on Multiple Listing Service (MLS)—MLSs are local marketplaces used by both brokers and listing brokers to share information about properties for sale.

What Does The NAR Settlement Mean Home Sellers?

You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers.
This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
If you choose to approve an offer of compensation, there are changes to how this can happen.
You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale.
Your agent can advertise your listing via off-MLS platforms such as social media, flyers, and websites.
You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).

What Does The Settlement Not Change?

• Agents who are REALTORS® are here to help you navigate the homebuying process and are ethically obligated to work in your best interest.

• Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation and understand what services you are receiving.

One of the key updates focuses on property disclosures and transparency. By staying current with these practices, we ensure that buyers and sellers have all the information they need to make sound decisions.

Looking To Buy Property? A REALTOR® Can Represent Your Best Interests

When you’re ready to purchase a home, working with a professional can help you meet your goals. There are many different compensation models that real estate brokers may use, so be sure to consider the services you need when selecting a broker to represent you.

How Can a REALTOR® Help With Your Real Estate Investment?

• Your REALTOR® will represent your best interests. Buyer’s agents have a fiduciary duty to the buyer rather than the seller.

• Buyer’s representatives can help you find properties that match your needs and provide data about the market to help you determine what you want to offer on a property.

•Your REALTOR® can assist in submitting offers, negotiating on your behalf, and navigating the dozens of details required to bring a complex transaction to a successful close.

How Are Real Estate Buyer Representatives Compensated?

Compensation for real estate services is negotiable between agents and their clients. Many real estate brokers who represent sellers offer to compensate the buyers’ representatives for helping to successfully sell the property. Buyers benefit from this arrangement because they can receive professional representation even when they don’t have the financial ability to pay for services directly. When hiring a REALTOR®, you can discuss what services you need and how compensation will work.

What Are The Disadvantages Of Purchasing Real Estate Without A Realtor®?

Buyer’s agents protect the interests of their clients. Your REALTOR® can help you submit offers, navigate complex transactions, identify down-payment programs, negotiate on your behalf, and talk to you about other professionals you may need during a real estate purchase. Nine out of 10 homebuyers and sellers say they would work with their REALTOR® again, which speaks to the valuable role REALTORS® play.

Make Life Easier When You Sell Your Home…Call An Expert

Sure, You Could Try To Sell Your Own Home.

You could gather as much market data as possible and try to determine the best asking price. You could decide what else you might do—paint or landscape or remodel?—to maximize the property’s appeal and value. You could get the word out to as many people as possible that your home is for sale. You could field all calls from buyers and their agents, schedule showings, and answer people’s questions. You could assess offers and make counteroffers. You could figure out how to respond to the buyer’s requests and questions, and keep on top of deadlines. You could research how to avoid missteps that would lose you money put the transaction at risk, or lead to a lawsuit.

Yes, You Could Do All That And Eventually Close The Deal…Or You Could Hire Someone To Make Your Life Easier.

By hiring a REALTOR®, you get a trustworthy, qualified professional helping you with your home sale. Your REALTOR® knows the ins and outs of your local market and can guide you to a successful closing.

With exclusive access to the most accurate market data and more than 150 real estate forms, your REALTOR® will ensure you have the information and tools you need to accomplish your goal. Your REALTOR® also has professional contacts in the industry who can help you with every aspect of the transaction.

You Won’t Have To Wonder What Is Happening Or What Comes Next. Explaining What’s Going On Is All Part Of The Job.

Selling your home is not only the largest financial transaction you’ll ever do—it can be one of the most stressful and complex ones as well. Why go it alone when you can have an advocate on your team? Your REALTOR® is here to help and bring you peace of mind.