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How The NAR Lawsuit Affects You

Discover how the NAR settlement can impact home buyers and sellers.

There’s been a lot of change recently in the real estate industry, especially with the NAR settlement and the lawsuits that surfaced regarding unfair practices in real estate commissions. Despite the fact that a settlement agreement has been reached, these proposed changes are not yet finalized, so things can still change.

With all of the changes, it can be confusing to understand what this means for you. So, let’s clear some things up and explore the potential impact of this settlement on both buyers and sellers.

There are no major changes for sellers because they have never been obligated to pay a buyer’s agent commission. It was always negotiable, and that remains true. Now, you can still offer to cover the buyer’s agent commission, but it can’t be advertised on the MLS. This will impact the seller’s ability to maximize the exposure of their house when they sell it. Buyers may choose to pass on seeing the homes where sellers are no longer cooperating because they don’t want to pay or can’t afford to pay the buyer’s fee.

It means that paying the buyer’s agent commission will now shift to the buyer, leading to more negotiations around closing costs and concessions. It would be a good idea to talk with a Realtor if you are still unsure of how to proceed, as they can determine the best approach for selling your home.

"It is important to consult with a qualified real estate agent to avoid misinformation. "

On the side of the buyers, they now need to sign a buyer’s agreement with your buyer’s agent outlining their compensation before they start helping you find a home. This agreement contains clearly defined terms on how you’re going to compensate your agent for their services.

If the seller isn’t offering to cover the buyer’s agent commission, the buyer shoulders this fee, increasing their overall cost. Although this could be financed as a part of the loan or added to the closing cost, Again, consulting with a Realtor is the best way to understand your options and responsibilities as a buyer in the current market.

Overall, the real estate market is still evolving, and many buyers and sellers are still adjusting to these changes. It is important to consult with a qualified real estate agent to avoid misinformation. A professional can guide you through the process and help you understand the complexities of the market so you can decide the best course of action to take.

If you are thinking of buying or selling a home in the weeks and months ahead, talk with us. We will be happy to answer your questions, provide valuable insights, and provide some good resources you can use. Again, feel free to talk with us; you can call, DM us, or send us an email. We’re here to lend a helping hand.

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