NAR PROPOSED SETTLEMENT

I am sure you have seen what’s going on in the news when it comes to Real Estate! The headlines have got it all wrong! Here’s what is actually happening!

NAR proposed a $418 million dollar settlement as a result of the recent lawsuits which addressed buyer’s agent commission
It’s PROPOSED, not final yet
It does NOT eliminate buyer agent compensation
Sellers can still offer out a compensation to the buyer’s agent, it just cannot be advertised on MLS
It will mandate that buyer-brokerage agreement forms be signed to establish expectations

Is this going to be a bad thing? No. It will actually be a very good thing for our industry.

Buyers will get to interview agents and decide if they want to work with them based on their value proposition. Compensation has ALWAYS been negotiable but it will be more negotiable now more than ever. With this proposed settlement, it will make commissions more transparent. That is a positive thing! The buyer-brokerage agreement will protect buyer’s agents and their time. This will weed out the agents who are lazy..

What is a buyer-brokerage agreement?

Stay tuned for my next blog-post to address Buyer Brokerage Agreements!