You've probably heard about the NAR settlement and its impact on home buyers and sellers. Not all the news is truthful, here's what you ACTUALLY need to know if you are or aspire to own a home.
Settlement Explained
In a nutshell, buyer-broker compensation is no longer allowed to be included in the Multiple Listing Service (MLS), and buyers are now required to sign a Buyer Representation Agreement that includes the buyer-broker's compensation. Most brokerages already have this as a requirement, so there is not a huge change here for many agents in the US.
For Buyers
So, what does this mean for buyers? Well, for starters, the days of casual property tours for fun are pretty much over. With the new requirement for a signed Buyer Representation Agreement before a property showing, buyers will need to have their ducks in a row before hitting the pavement. While this may seem like a big change, it's actually a best practice that ensures both buyers and their agents are on the same page from the get-go.
For Sellers
As for sellers, the impact of the NAR settlement may not be as significant. Seller-paid buyer broker commissions have historically been "baked into" the sales price of a home, but with these commissions now being separated from the MLS, sellers may have more flexibility in how they structure their listing agreements.
Additionally, lower sales prices resulting from buyers taking on the responsibility of buyer broker commissions shouldn't affect sellers' net proceeds, as long as the sales price deficit roughly mirrors the absent buyer broker's commission.
What's Next?
So, what's the key takeaway here? While the NAR settlement may be shaking up the real estate industry, it's also highlighting the value of having a knowledgeable and experienced real estate professional by your side. If you're feeling unsure about how these changes may affect your buying or selling journey, don't hesitate to reach out. I'm here to provide guidance and support.