Tuesday, August 13, 2024   /   by Richard Eimers

HOME SELLERS: HERE'S WHAT THE NAR SETTLEMENT MEANS FOR YOU

As a home seller, you have a wide range of choices when it comes to listing your home. Agents who are REALTORS® are a trusted source of advice and stand ready to help you navigate this complex process and make the choices that work best for you. NAR’s recent settlement has led to several changes related to broker commissions that benefit sellers, and we wanted to clearly lay them out for you.Richard Eimers Broker, August 13, 2024

The National Association of REALTORS® (NAR) settlement has introduced significant changes to the real estate industry, particularly affecting home sellers. These changes, set to take effect on August 17, 2024, aim to increase transparency and flexibility in real estate transactions while maintaining seller options.Under the new guidelines, sellers retain the ability to offer compensation to buyer brokers as a marketing strategy to enhance their property's appeal. However, the process for doing so has been modified to ensure greater transparency and seller control.Key changes for sellers include:

1. Mandatory disclosure: Listing agents must now provide a conspicuous, written disclosure to sellers regarding any payments or offers of payment to buyer brokers. This disclosure must be made in advance and specify the amount or rate of such payments.
2. Seller approval: Sellers must explicitly approve any compensation offers to buyer brokers.
3. MLS restrictions: While sellers can still offer compensation, listing agents are prohibited from including this information on Multiple Listing Services (MLS). However, agents can advertise listings through alternative channels such as social media, flyers, and websites.
4. Buyer concessions: Sellers maintain the ability to offer buyer concessions, such as assistance with closing costs, on MLS platforms.

It's important to note that certain aspects of the home selling process remain unchanged:

1. REALTOR® obligations: Agents who are REALTORS® continue to be ethically bound to work in the seller's best interest and guide them through the selling process.
2. Negotiable compensation: Agent compensation remains fully negotiable. REALTORS® are required to have transparent discussions about compensation with sellers.
3. Seller choices: Sellers retain the flexibility to make decisions that best suit their needs, with guidance from their agents.

These changes aim to empower sellers with more control over their transactions while maintaining the valuable services provided by real estate professionals. Sellers are encouraged to engage in thorough discussions with their agents about compensation structures and marketing strategies to optimize their home sale experience under these new guidelines.

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