What the NAR Settlement Means for Buyers

What the NAR Settlement Means for Buyers

Buying a home may be one of the largest financial decisions most people will make.

Here’s what the settlement means for homebuyers:

Written Agreement Requirement: Before touring a home, you will need to sign a written agreement with your agent. Review this agreement to ensure it accurately reflects the terms you’ve discussed and that you understand the services and fees involved.

Compensation Details: The buyer agreement must clearly state:

The exact amount or rate of compensation the agent will receive or how it will be determined.
Compensation must be specific (e.g., $0, a flat fee, a percentage, or an hourly rate), not vague (e.g., cannot be based on what the seller offers).

The agreement must specify that the agent cannot receive compensation exceeding the agreed-upon amount or rate from any other source.

A clear statement that broker fees and commissions are negotiable and not set by law.

Scope of Agreements: Written agreements are required for both in-person and live virtual home tours.

No agreement is needed if you are simply asking an agent questions at an open house.

Seller Compensation: Sellers may offer compensation to your agent, but this offer cannot be listed on a Multiple Listing Service (MLS).

Concessions: You can still receive concessions from the seller, such as offers to cover your closing costs.

These changes will take effect on August 17.

What the settlement doesn’t change:

Agent compensation remains negotiable. If your agent is a Realtor®, they are required to discuss compensation transparently and clearly with you. Be sure to ask questions about compensation and the services provided.

You have choices. Work with your agent to explore all your options to make the best decision for your needs. (National Association of Realtors®)

For the full, original article, please see:
Homebuyers: Here’s What the NAR Settlement Means for You