A lot of misleading information about the NAR (National Association of Realtors) settlement. Click Here if you want the truth.
The settlement is NAR's way of protecting the industry from long drawn out legal battles and lots more money.
THE BOTTOM LINE...
2 Key Points:
Agents will no longer be able to enter commissions paid to buyer agents on the MLS.
Agents will no longer be able to hop in their car and show a buyer property without a written agreement. This does not have to be a "Buyer Agency Agreement," but there has to be something in writing between buyer and agent that clearly defines how the agent is going to be paid for their services. I LOVE THIS!!! Prior to the lawsuit, it was generally assumed that the seller would pay the buyer agency's commission, and this was listed in the MLS.
What this new law means to buyers is that they will now need to be prepared to pay for their agent's services, and not expect a free ride.
When I started my real estate career over 12 years ago, I thought it was crazy that buyers didn't pay for our services. So while many agents are upset about the change, this change actually makes sense to me.
Sellers CAN offer "buyer concessions" outside of the MLS to help pay the buyer's agent commission - and you know buyer agents are going to ASK for this. But what this means to sellers is that they no longer have to feel pressured to pay that average 6% commission where 3% would go to the listing firm and 3% would go to the buyer's agent firm. Now sellers have choice - to pay or not to pay.
These changes are slated to go into effect in August 2024. Firms are scrambling to get prepared for the changes.
They need to have an Agreement drawn up for buyers to sign to tour property.
They have to create or update their buyer consultation.
They have to train their agents on how to share this update with buyers.
Here in North Carolina, unlike some states, we've always had a Buyer Agency Agreement that outlines who is paying the agent's fee. In the past, we would indicate on the Agreement that we would ask the seller to pay at closing, but if the seller refused, the buyer would be responsible for payment. This form may change a bit, but the only real difference for us is explaining to the buyer that we can't show them property until they sign with us.
In my humble opinion, this is a step forward for the industry. Buyers will have less chance of taking agents for granted, and inconveniencing sellers by looking at properties when buyers have no skin in the game, just wanting to tour the city.
It's a brand new day, and a brand new way of doing business.
Wanda Marie