A HOME SELLER’S GUIDE
To The National Association of Realtors™ 2024 Settlement
THE SALE OF YOUR HOME IS A BIG DECISION—
You deserve to make an informed decision, and we’re here to help This guide will help you understand big changes in the real estate industry and what this news means for your home’s sale.
In March 2024, the National Association of Realtors™ (NAR) announced a settlement to a national case that amends residential real estate practices going forward, including agent compensation.
What every seller should know:
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Sellers have always had the choice to offer concessions to assist with the buyer’s closing costs. This remains in effect.
MLSs can no longer advertise compensation to the buyer’s agent. Sellers should discuss buyer agent compensation early in the relationship with their agent.
• The amount of commissions paid to real estate agents has always been and will remain negotiable.
Before viewing a home, a buyer’s agent must have a signed agreement with their buyer client, which details how the agent will be compensated.
When it comes to a successful transaction, we always have your best interests in mind. Let’s discuss the best strategy for your home’s sale.
BUYER AGENT COMPENSATION AND YOUR HOME MARKETING PLAN
Traditionally, a listing agent shared their commission with the agent representing the buyer This was known as “cooperating compensation ” Moving forward, the seller can negotiate a concession directly with the buyer through the purchase agreement process If the seller agrees to the concession, a buyer may elect to use the concession to compensate their buyer agent
This is an essential decision that will be discussed as part of your home marketing plan We’ll also review a market analysis, timing, home readiness, staging, photography, promotion, advertising, open houses, and more Each step will be carefully considered with input to help you achieve your goals
COMMON QUESTIONS REGARDING BUYER AGENT COMPENSATION
WHY WOULD A SELLER OFFER A CONCESSION TO THE BUYER TO COVER THE BUYER’S AGENT COMPENSATION?
When marketing your home, the goal is to obtain the highest number of offers. Offering a concession to the buyer to help cover costs such as buyer agent compensation helps make your home appealing to the broadest group of potential buyers. Some buyers, despite being well qualified, may not have the additional resources needed without those seller concessions.
ARE SELLERS ALLOWED TO OFFER COMPENSATION TO THE BUYER AGENT?
Yes. Sellers can offer a concession to the buyer that may be used, in part, to cover the buyer’s obligation to their agent.
CAN A SELLER ADVERTISE A BUYER CONCESSION?
Yes. A seller may advertise and promote their willingness to cover certain buyer obligations.
CAN SELLERS OFFER BUYER CONCESSIONS LATER IN THE TRANSACTION?
Yes. Buyers and sellers at any time may negotiate the terms of the contract, which may include concessions to cover a buyer’s various obligations.
CAN THE LISTING AGENT ALSO REPRESENT THE BUYER?
Yes. This is called “dual agency,” and after disclosing this to both the buyer and the seller, it is allowed. Sellers, along with the listing agent, should discuss the pros and cons of such a transaction before entering into any agreement. If a potential buyer requests “dual agency,” you will be consulted on how to proceed.
WHAT IF MY HOME IS CURRE LISTED BEFORE THE NAR CH
We will continue to market y largest buyer pool to achieve agreement you have remains commitment to providing ou However, there is a required a bring your listing agreement
