Dear RWorld: What Can Consumers & Realtors® Expect from the Settlement?
The National Association of Realtors® (NAR) proposed settlement is trending across the real estate market. Some of the takeaways that consumers and Realtors® can expect are price transparency, leveled playing fields, seller incentives, and more.
While compensation will remain negotiable the settlement aims to create more transparency and fairness in the real estate market, allowing buyers and sellers to make informed choices. There are many questions in the air, so let's dive into hypothetical dialogues between RWorld and a first-time homebuyer and an RWorld Realtor®.
Dear RWorld: I will be a first-time homebuyer, and I am curious if the proposed settlement will affect me when I get ready to find and purchase my first home. Will the seller have to pay a commission to my Realtor®, or will I have to pay my Realtors® commission when I find my dream home? – First-Time Homebuyer
Dear Homebuyer: Realtor® commissions are negotiable based on you and your Realtor® —or the seller and their Realtor®, for that matter. Each transaction is unique, so it’s really up to all parties involved when you do find your dream home. Talk with your Realtor® and let him/her know that this is a concern of yours, and get a game plan together for success. Your Realtor® is there to guide you through as an expert. Also, ask about loan programs, such as Hometown Heroes. You may be eligible to receive up to $35,000 towards closing costs. Good luck, and you got this!
Dear RWorld: I am a Buyer’s Agent and RWorld Member, and I was wondering if the proposed settlement would prevent a seller from paying me a commission if a commission amount is not indicated in the MLS. If compensation is removed from the MLS, how will I get paid? – RWorld Realtor®
Dear RWorld Realtor®: That's a great question. NAR’s proposed settlement indicates that in July 2024, MLSs must remove or prohibit the offer of compensation from listings in the MLS. Now, with that said, there’s not one set standard scenario for your commission. As you know, commissions and commission amounts are negotiable. Some Realtors® representing sellers may offer a compensation structure outside of the MLS. There can be many ways that commissions can be paid, but let’s talk about two. There may be a scenario where the seller pays both Realtors® commissions involved, or there may be a scenario where the buyer pays your commission if you negotiate that with your buyer. If the latter is the case, then I would have that conversation with your buyer and prepare a buyer value proposition package itemizing your services and expertise. Each transaction and client are unique, so be transparent with your client and communicate timely and effectively with the other Realtors® involved on your client's behalf.
By RWorld Staff
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Source: Herald- Tribune