What you need to know about the NAR settlement.

We wanted to take a moment to explain the recent National Association of Realtors (NAR) settlement, how it affects us, and why the media coverage may have caused some confusion. Your understanding of these changes is important to us, and we aim to provide you with the clarity you deserve.

Quick Facts

• A class action lawsuit and settlement happened with NAR.
• If you bought or sold a home in the last four years, you and 25 million other people will receive a postcard in the mail to file a claim for an estimated $10-$25 award.
• Buyer’s agents must have a written agreement before they show anyone a homes.
• Buyer’s agent commissions will not be disclosed in the MLS as of August 17th, 2024.

What Happened?

The NAR recently settled a class-action lawsuit that alleged certain practices were unfair to home buyers and sellers. This lawsuit focused on the way real estate agents disclosed their commissions and how those commissions were negotiated. The settlement aims to increase transparency and fairness in real estate transactions.

What will be changing?

Previously, it was common practice to include the buyer agent’s commission in the MLS listings, which could be seen by other agents but not necessarily by buyers and sellers. Under the new agreement, this practice will change. Starting August 17, 2024, commissions for buyer agents will no longer be included in MLS listings. Additionally, buyer agents must have a written agreement with their clients before showing homes.

What does this mean for you?

If you listen to the media coverage on this, you are likely going to be confused (lots of misrepresentation and misguided speculation.) The most important outcome in this is for you to have 100% clarity on how an agent is paid when you hire them and the options, so that when you buy or sell a home, you can make the best decision for you and your family.