What the NAR Settlement Means for Home Sellers: Key Changes You Should Know
As a home seller, you have numerous options when it comes to listing and marketing your property. Working with a REALTOR® provides you with trusted guidance throughout the process, ensuring that you make informed decisions that align with your goals. Recently, the National Association of Realtors (NAR) reached a settlement that introduces several important changes, particularly regarding broker commissions. Here’s a clear breakdown of what these changes mean for you as a home seller.
Key Changes That Benefit Home Sellers
1. You Still Have the Option to Offer Compensation to Buyer Brokers
You retain the ability to offer compensation to buyer brokers. This can be an effective strategy to market your home and make your listing more appealing to potential buyers. However, it’s important to note that the way this compensation is handled has changed.
2. Required Disclosure and Approval of Payments to Buyer Brokers
Your agent is now required to clearly disclose and obtain your approval for any payment or offer of payment that will be made to a broker representing buyers. This disclosure must be provided to you in writing before any agreement is made, and it must specify the exact amount or rate of the payment.
3. Changes to How Compensation Offers Can Be Made
If you decide to offer compensation, your agent cannot include this offer on a Multiple Listing Service (MLS). MLSs are local platforms where buyer and listing brokers share property information. While compensation details will no longer appear on the MLS, your agent can still market your home through off-MLS platforms, such as social media, flyers, and websites.
4. Buyer Concessions Are Still Permitted on the MLS
You can still offer buyer concessions, such as assistance with closing costs, on the MLS. These concessions can be an attractive incentive for buyers and are not affected by the new settlement changes.
These practice changes will officially take effect on August 17, 2024.
What the Settlement Doesn’t Change
1. REALTORS® Are Committed to Your Best Interests
Despite these changes, REALTORS® remain dedicated to helping you navigate the home-selling process with your best interests in mind. They are ethically bound by the REALTOR® Code of Ethics to provide transparent and fair services.
2. Agent Compensation Remains Negotiable
The ability to negotiate your agent’s compensation remains the same. Be sure to have open discussions with your agent about compensation, including what you may want to offer buyers, to ensure everything aligns with your selling strategy.
3. You Have a Range of Options
As a home seller, you have various choices at your disposal. Collaborate with your agent to explore these options fully, allowing you to make the most informed decisions that best meet your needs.
These updates are designed to provide greater transparency and fairness in the real estate process. By understanding these changes, you’ll be better equipped to make decisions that enhance the appeal of your listing and ensure a smooth selling experience.
Ready to sell your home? Contact Lisa M. Lum (DRE #02005150) at Coldwell Banker Realty for expert guidance every step of the way. Let's make your home-selling journey a success!