A note from the team leader, Erica…
In the wake of recent headlines surrounding the National Association of Realtors (NAR) settlement, a whirlwind of misinformation and misconceptions has emerged around the real estate industry. As your trusted real estate advisor, I’m here to provide clarity on what this settlement truly means for you, the consumer, moving forward.
First and foremost, let’s address and debunk some myths. A prevalent misconception is that this settlement drastically changes the role of realtors and the commission structure for buyers and sellers. Even the President, Joe Biden, has spread misinformation that commissions are negotiable for the first time due to this settlement. This is simply not true.
Commissions have always been negotiable, a fact that remains unchanged. However, what the settlement does modify is the landscape surrounding co-op commissions within the Multiple Listing Service (MLS), lifting previous obligations for agents to offer a co-op commission. This change emphasizes the importance of demonstrating value and negotiating fair compensation.
Moreover, the settlement introduces significant steps towards enhancing transparency in our working relationships:
#1. NAR agreed to create a new MLS rule prohibiting offers of compensation on the MLS. This would mean that offers of compensation could not be communicated via an MLS, but they could continue to be an option consumers could pursue off-MLS through negotiation and consultation with real estate professionals.
#2. NAR also agreed to create a new rule requiring MLS participants working with buyers to enter into written agreements with their buyers before the buyer tours a home. NAR has long encouraged its members to use Broker Employment Agreements to help consumers understand exactly what services and value they provide, and for how much.
Transparency is key, and clients deserve to know what to expect from our services. Sensationalized headlines have clouded public perception, but it is our duty to clear the air with accurate information and exceptional service.
For further insights and to discuss how these changes may impact your real estate plans, feel free to reach out to me directly. My team and I are committed to navigating this new landscape together, ensuring your real estate journey is successful and informed.
