Thoughts on NAR News

04/23/24  |  Lori Docherty

I wanted to take a moment to address the proposed settlement by the National Association of REALTORS® (NAR) and clarify the potential impact it may have on the real estate industry. There has been a lot of speculation and misinformation spread by the media, so I hope you find this explanation helpful. It's important to note that sellers will retain the discretion to offer compensation to buyer’s brokers, and the proposed settlement does not limit this ability. However, there will be changes in how we can promote the commission offered to buyer brokers.


Commissions have always been negotiable and will continue to be so, and transparent conversations with clients regarding broker compensation will remain a top priority. One key aspect of the proposed settlement is the mandate that every buyer represented by a NAR-affiliated agent sign a Buyer Representation Agreement before touring a property, a practice already in place in numerous states for over a decade. Providing professional representation for buyers at every income level is a key priority, and the value that agents provide to clients is recognized.


1. Enhanced Sales Price: The commission cost is typically factored into an offer, and buyers who finance the payment of commissions out of their down payment may inadvertently reduce their offer price, potentially more than the commission amount paid.


2. Expanded Exposure for Your Listing: A buyer’s agent can effectively present your listing to interested buyers, maximizing your home’s exposure in a competitive market, generating more interest, and attracting multiple interested parties, positively impacting the final sales price.


3. Attracting Qualified Buyers: The guidance and expertise of a buyer’s agent can enhance the likelihood of engaging with informed, financially capable, and ready-to-transact qualified buyers, reducing the potential for deal fall-through and resulting in a more efficient sales process.


4. Streamlined Contract-to-Close Process: Buyer agents provide guidance and support throughout the contract-to-close process, enabling an objective approach and a seamless transaction.


5. Minimized Seller Liability: Professional representation ensures that buyers complete their investigations satisfactorily, thoroughly review and understand seller disclosures, and fulfill each required step, resulting in a well-informed buyer, potentially less buyer’s remorse, and issues after closing escrow.


As the industry adapts to potential changes, the commitment to providing exceptional client service remains unwavering. The trust earned with clients is highly valued, and efforts will be made to navigate any changes to rules and regulations while upholding the highest standards. If you have any questions related to these potential changes or any other real estate topics, please do not hesitate to reach out.

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