We wanted to reach out to you to provide clarity on the recent developments regarding the National Association of REALTORS® (NAR) settlement.
As you may have heard, the National Association of REALTORS® recently reached an agreement that would end litigation related to broker commissions. The lawsuit, filed in 2020, essentially claimed that the NAR’s rules forced sellers to offer a set commission rate. The rule in question required the seller and listing broker to offer compensation to a buyer’s agent when a property was listed for sale in the Multiple Listing Service (MLS). That offer could have been as low as $1.
Unfortunately, there has been a lot of misinformation and inaccuracies surrounding the proposed settlement. These inaccuracies have caused confusion about compensation and the future of buying and selling a home. We’re here to provide clarity.
While still proposed and not yet finalized, the settlement aims to provide more transparency for homebuyers and sellers.
What does this settlement mean for sellers?
- Commissions remain negotiable between a seller and their agent.
- Sellers may still elect to make offers of compensation to a buyer’s agent.
- Offers of compensation may no longer be made within the MLS. However, compensation can be offered through non-MLS avenues. For example, on the Nest Realty website, marketing brochures, property email marketing, and direct Realtor-to-Realtor communication.
- Sellers may offer buyer concessions in the MLS, and buyers can choose to utilize these concessions to pay their buyer’s agent.
What does this settlement mean for buyers?
- The settlement requires signed representation agreements between buyers and their agents that define the scope of services and compensation. These agreements must be signed before showing/viewing properties listed in the MLS. You wouldn’t expect an agent to put a sign in your yard and list your house without a signed agreement; this change brings that expectation and requirement to the buyer’s side.
- Buyers are free to negotiate and define their agent’s compensation and scope of services for a transaction.
- Buyers may be responsible for some or all of their buyer’s agent’s compensation, depending on what, if any, compensation is offered by the seller.
We have always been – and always will be – focused on providing exceptional service and support to our clients. Whether helping someone to buy or sell, honesty, trust, and transparency are paramount to how we work. Nest has been representing clients for many years, and we look forward to representing you in the future.
Ultimately, we want you and our clients to be informed. If you have any questions regarding this proposed settlement, its impact, or anything that you are reading or hearing about this news, we are happy to talk and would love to have a conversation with you about this.
Finally, we believe strongly in the value of real estate representation. In 2022, 89% of homebuyers and 93% of sellers chose to have an agent represent their interests. Navigating a real estate transaction is complicated, and we’re here to help. We appreciate your confidence in us and will continue to treat any referrals with the highest level of trust and care.
Shannon Harton
Associate Broker / Partner
