How Will the NAR Settlement Impact Buyers and Sellers?

By Arizona Home Group

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Recently, the real estate world has been abuzz with discussions surrounding the NAR settlement. With so much speculation swirling, it’s crucial to separate fact from fiction and understand how these changes will impact the industry moving forward.

Firstly, it’s important to note that while the settlement has been announced, it is still in the proposal stage and awaiting finalization. However, we believe it’s essential to provide you with the facts as they stand and offer insights into what this means for both buyers and sellers.

Beginning in July, one significant change set to take effect across the nation is the prohibition of advertising buyer broker compensation within the Multiple Listing Service (MLS). However, this doesn’t mean that buyer-broker compensation won’t be offered; it simply cannot be openly advertised.

Sellers will still have the option to offer buyer broker compensation, albeit not publicly through the MLS. Additionally, buyers will now be required to sign a buyer-broker agreement before viewing homes listed on the MLS. This ensures clarity and establishes expectations for both parties involved.

So, what does this mean for buyers and sellers? Sellers’ commissions will remain negotiable, with sellers determining how they will compensate buyer brokers to remain competitive in the market. While buyer-broker commissions won’t be advertised in the MLS, they are likely to be structured as concessions paid by the seller, then passed on to the buyer’s agent at closing.

The most significant change for buyers is the requirement to sign a buyer-broker agreement before viewing homes listed on the MLS. This agreement will outline compensation details and establish clear expectations for both buyers and agents.

We welcome these changes as they promote transparency and accountability within the industry. We believe these adjustments will elevate the standards for all agents and ultimately benefit both buyers and sellers.

As always, we remain committed to providing you with the most up-to-date and relevant information. If you have any questions or concerns regarding the NAR settlement or any other real estate matters, please don’t hesitate to reach out to us via phone or email. We’ll be happy to assist you.