How The National Association of REALTORS®
LAWSUIT IMPACTS LOCAL HOMEOWNERS
You may have heard about the National Association of REALTORS® (NAR) lawsuit in the media. How does this lawsuit regarding real estate commissions affect you as a homeowner? Find out more inside.
As you may be aware, or have heard numerous times in the media, the recent proposed settlement involving NAR will bring about significant changes to the real estate indsutry. The proposed settlement, which followed an investigation into anticompetitive practices within the industry, has prompted a series of reforms aimed at fostering greater transparency for consumers and real estate professionals alike.
One of the key changes resulting from the proposed settlement is the increased transparency surrounding property listings and commissions. With the aim of promoting competition and providing consumers with more choice, it will require greater disclosure of commission rates and other pertinent information related to property transactions. This shift towards increased transparency is expected to empower consumers to make more informed decisions when buying or selling a property.
In light of these changes, it is essential for all stakeholders in the real estate industry to stay informed and adapt to the evolving landscape. Whether you are a buyer or seller, understanding these developments will be crucial in navigating the market effectively and seizing opportunities as they arise.
HERE’S WHAT WE KNOW RIGHT NOW
The NAR proposed settlement does not prohibit sellers from making offers of compensation to buyers’ agents; it only removes the mandatory requirement that such offers be made and displayed on the Multiple Listing Service (MLS).
NAR will require buyers’ agents to use representation agreements with their clients, which will bring greater consumer transparency and ensure buyers’ agents are compensated for the valuable services they provide.
The Headlines: “Sellers don’t need to offer compensation to buyers’ agents.”
The Reality:
Choosing to help with or cover the cost of a buyer’s agent commission or closing costs is solely the seller’s decision (it always has been - nothing has changed). Many sellers see value in doing so. They feel it is important to incentivize buyers to potentially maximize their sales price. It can help make their property attractive to a wider pool of buyers by helping to alleviate out-of-pocket costs. Sellers also recognize they are better protected with a clear path to a smooth transaction when buyers are represented by an agent.
The Headlines: “Home buyers and sellers won’t have to pay a standard commission anymore.”
The Reality:
There is no standard commission, commissions are negotiable, and they always have been. These changes are simply going to make the commission process more transparent, ensuring clarity between the buyer’s agent and their clients from the onset.
The Headlines: “Buyers no longer need agents.”
The Reality:
Real estate agents help consumers successfully navigate one of life’s most expensive and impactful transactions, providing invaluable advocacy, support, and expertise. We feel this is particularly the case for homes in this market given some of the complexities this region includes.
Senné remains committed to keeping you informed about the latest developments in the real estate industry and supporting you in achieving your goals. Should you have any questions or require further information, please do not hesitate to reach out to your local Senné Associate.
Thank you for your attention. We look forward to continuing to serve you in all your real estate needs.
“ For all of us at Senné, the recent NAR lawsuit highlights the importance of transparency and fairness in our industry. Our goal is to ensure you have confidence in our services and trust that we are working in your best interest every step of the way.
-William Senné, CEO
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