The recent $418 million settlement by the National Association of Realtors (NAR) has introduced significant changes to the real estate industry, affecting both homebuyers and sellers. This settlement aims to increase transparency and reduce costs, fundamentally altering how real estate transactions are conducted. Here’s what you need to know about the NAR settlement and how it impacts you as a home seller.
Key Changes from the NAR Settlement - effective August 17, 2024
Compensation Disclosure: Sellers must now approve any payment or offer of payment to buyer brokers in writing. This ensures transparency and prevents hidden fees.
Off-MLS Advertising: While sellers can still offer compensation to buyer brokers, these offers cannot be listed on Multiple Listing Services (MLS). Instead, they can be advertised through off-MLS platforms such as social media, flyers, and websites.
Seller Concessions: Sellers can still offer concessions, such as covering buyer closing costs, on MLS platforms.
Negotiable Fees: Agent fees and commissions remain fully negotiable, giving sellers more control over their expenses.
Benefits for Home Sellers
Cost Savings: The settlement promotes competition and transparency in agent fees, potentially reducing costs for sellers.
Informed Decisions: With clear agreements and disclosed compensation, sellers can make more informed decisions about their real estate transactions.
Recommended Checklist for Home Sellers
To navigate these changes effectively, here are items to consider when selling your home:
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Understand the Agreement: Before signing, ensure you fully understand the terms of the written agreement with your agent.
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Negotiate Fees: Remember that agent fees are negotiable. Don’t hesitate to discuss and negotiate these terms.
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Ask Questions: Clarify any doubts about the services provided and the compensation structure.
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Review Seller Concessions: Discuss potential concessions with your agent and understand how they can benefit you.
To help you navigate the changes brought by the NAR settlement, download our comprehensive home seller checklist below.
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