Many of us have Apple News notifications dinging on our phones and watches whenever a big headline drops. It can be challenging to sift through the articles and headlines to find the bullet points. Most recently, on March 15, the National Association of REALTOR (NAR) “announced an agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions.”
Two parts of this settlement agreement that are generating buzz are broker compensation and written agreement with buyers. While NAR has proposed the settlement, this still has to be approved by the court.
1 – In regards to Broker Compensation: “NAR has agreed to put in place a new MLS rule prohibiting offers of broker compensation on the MLS. This would mean that offers of broker compensation could not be communicated via the MLS, but they could continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals”*.
2 – In regards to written agreements with Home Buyers: “NAR has agreed to enact a new rule that would require MLS participants working with buyers to enter into written agreements with their buyers…These changes will go into effect in mid-July 2024.”*
NAR is an enormous trade association, with over 1.5 million members in the real estate industry. As a California REALTOR, I am also a part of the California Association of REALTORs (CAR) and my local association Citrus Valley Association of REALTORS.
Here are 3 things that may come from the NAR Settlement:
1 – Short Term Uncertainty or Confusion – While the settlement is getting worked out, there may be some confusion in the industry about what is effective immediately and in the future. Home Sellers and Home Buyers might have questions for their agents about how this affects their bottom line or how the real estate transaction will work.
2 – True Professionals Will Thrive – Every time an industry faces changes, the cream will rise to the top. Our brokerage KALEO Real Estate Company is at the forefront of tracking and managing changes to forms, contracts, laws, and best practices so that our clients reap the benefits of a competent and educated real estate agent.
3 – Real Estate Agents Are Not Going Away, but New Models May Spring Up – The purchase or sale of real estate is not the same as buying or selling a car, a computer, or even expensive jewelry. Real Estate is a complicated transaction. After the settlement is finalized, new brokerage business models may spring up and some agents may get out of the business, but the role of a real estate agent will still be necessary and needed.
If you have questions about the NAR Settlement headlines, then send me an email, give me a call, or text. Whatever changes happen, I will continue to serve my clients with integrity, compassion, and a commitment to advocate for their needs.
Take care,
premieragentperez@gmail.com
