Understanding the NAR Settlement for Homebuyers & Sellers
Disclaimer: the following information was provided to Turcotte Homes from the National Association of REALTORS® (NAR) for our clients' educational purposes. For more information or exact language from the NAR you can download the following guides:
What the Settlement Means
Whether you're buying or selling, it's crucial to understand how these changes affect you. Navigating the real estate market can be complex, and recent changes due to the NAR Settlement add another essential layer to consider. This blog will break down the key points for both homebuyers and sellers, ensuring you're well-informed and ready to make the best decisions.
Let’s get to it!
What Homebuyers Need to Know
Buying a home is one of the most significant financial decisions you'll ever make. At Turcotte Homes we want to ensure you’re aware of how the NAR settlement impacts you:
1. Written Agreements: Before touring homes, you'll need to sign a written agreement with your agent. This ensures clarity on the services provided and the compensation involved.
2. Compensation Transparency: The agreement must clearly disclose the agent's compensation, which can no longer be open-ended. It should state:
A specific compensation amount or rate.
That compensation cannot exceed the agreed amount.
A statement that all broker fees are negotiable.
3. Seller Concessions: Sellers can still offer concessions, such as covering your closing costs. However, these offers won't be listed on the Multiple Listing Service (MLS).
4. Ethical Guidance: REALTORS® are committed to working in your best interest, abiding by a strict code of ethics.
What Home Sellers Need to Know
On the flip-side, selling your home involves numerous decisions, too—and the NAR settlement has introduced changes that could influence our strategy:
1. Compensation Choices: You can still offer compensation to buyer brokers to make your listing more attractive, but it cannot be listed on the MLS.
2. Disclosure Requirements: Any compensation offer to buyer brokers must be disclosed to you in writing and approved by you before any payment is made.
3. Advertising Flexibility: Your agent can promote your listing through various platforms, including social media and flyers, even if compensation offers aren’t listed on the MLS.
4. Ethical Standards: REALTORS® remain committed to ethical practices, ensuring they work in your best interest and maintain transparency regarding their compensation.
3 Key Takeaways for Both Buyers & Sellers
While there are differences to consider as a home buyer or seller when it comes to the NAR Settlement, it’s also important to understand the differences regardless of which side you find yourself. Here’s a quick overview of the shared takeaways for all parties:
1. Full Negotiation: Agent compensation remains fully negotiable. Always discuss and understand the terms before signing any agreements.
2. Choices and Control: Both buyers and sellers retain a range of choices to navigate the real estate process effectively. Work with your agent to explore all available options.
3. Effective Date: These changes take effect on August 17, 2024. Make sure to stay updated and adjust your plans accordingly.
For more detailed information on the NAR settlement and how it impacts you, visit facts.realtor.
By understanding these new rules and leveraging the expertise of your REALTOR®, you can confidently navigate your real estate journey. At Turcotte Homes, we're here to guide you every step of the way, ensuring you make informed decisions that align with your goals.
If you have any questions or are curious to learn more about the home buying and selling process, be sure to book your free consultation today!
– Linda