The NAR Settlement and what it means to buyers…
A lot of information is now available online and through countless posts on social media surrounding the settlement of the case against the National Association of Realtors. The main point of contention is the fact that commissions that have historically been offered and paid by the seller to both the seller’s agent and the buyer’s agent will no longer be published on the MLS.
Realtor’s use the MLS (multiple listing service) to post and search for properties online. This exclusive tool for Realtors has a space that allows the listing agent (or seller’s agent) to post the commissions payable to both themselves and what percentage is offered to a buyer’s agent. This section, under the terms of the settlement agreement, will be removed so that the buyer’s agent is not aware of the commission or if it is being offered at all.
The issue alleged in the suit was that Realtors were overlooking properties with lower commissions offers and only presenting property listings with higher commissions, thus causing damages to sellers who were offering less commissions. Under the new guidelines, a buyer’s agent can negotiate the commission with their buyer or continue to request commissions from the seller but the transaction details are not published.
Obviously, there is a lot more to this and additional information is readily available on the web. We will continue to monitor the changes and inform you, our valued clients, of any pertinent information. For more detailed information, visit the NAR website or use the link below.