If you're thinking about buying or selling a home, you might have heard about the recent settlement between the National Association of Realtors (NAR) and what it could mean for the real estate process. We’re here to break it down so you can understand how these changes could affect you.
One of the biggest changes is all about making things more transparent. In the past, the commission that went to the buyer's agent was often decided by the seller's agent and bundled into the home's price. This sometimes made it hard to know exactly who was paying for what.
Thanks to the new settlement, these commission details will now be clearer. If you're buying a home, you'll have a better understanding of what you're paying your agent for, which means more confidence in your decisions. If you're selling, you’ll have more room to negotiate these terms openly, making sure you get the best deal possible.
Another win from this settlement is that buyers now have more control over negotiating the commission they pay their agents. This could lead to saving some money and gives you more options when deciding how to compensate your agent. Essentially, as a buyer, you're now in the driver’s seat, with more power to shape your home-buying experience to fit your needs.
How does the NAR settlement impact me as a homebuyer?
The NAR settlement introduces more transparency in how real estate agents are compensated. One significant change is that commission offers will no longer be listed on MLS platforms. However, buyers can still negotiate compensation with their agent directly, giving you more insight into and control over the costs involved in buying a home.
Do I have to pay my real estate agent directly now?
Not necessarily. While compensation details will no longer appear on the MLS, you can still negotiate with your agent on how their commission will be handled. In many cases, the seller may still offer to cover part or all of the buyer’s agent commission through negotiated terms, but the key difference is that it will now be more transparent.
Will I need to sign an agreement with my agent?
Yes, as of August 17, 2024, all buyers must sign a written agreement with their real estate agent before touring homes. This agreement will outline the services the agent will provide and how they will be compensated, ensuring you know exactly what you're getting and what you're paying for.
How will this affect home prices?
The settlement doesn't directly impact home prices, but with more clarity around commission structures, you’ll have a better understanding of the costs involved. This transparency can potentially make the buying process smoother and help you make more informed decisions about your budget.
Does this settlement make buying a home more expensive?
Not necessarily. The changes give buyers more control over negotiating their agent’s compensation. By having clear agreements in place, you may even find opportunities to reduce your costs by negotiating terms that work best for you and your agent.
Can I still get help with closing costs?
Yes. Sellers can still offer concessions, such as covering some of your closing costs, even though commissions won’t be displayed on the MLS. These concessions can be negotiated between you, your agent, and the seller, making sure you’re still getting the financial help you might need at closing.
.png?w=851)
