Home Buyers: Here's What the NAR Settlement Means for You

Buying a home is one of the largest financial transactions most people will ever undertake. Agents who are REALTORS® are a trusted source of advice and are here to help you navigate your home-buying journey, ensuring you make the best choices for your needs. NAR’s recent settlement has led to several changes that benefit homebuyers, and we wanted to clearly lay them out for you.

What the Settlement Means for Those Who are Curious to Buy:

1. Written Agreements: You will now sign a written agreement with your agent before touring a home. This agreement should reflect the terms you have negotiated with your agent, clearly outlining the services and value provided, along with the associated costs.

2. Buyer Agreement Components: Buyer agreements must include: clear disclosure of agent compensation, detailed and objective compensation terms (e.g., flat fee, percentage, hourly rate), a clause preventing the agent from earning more than the agreed amount from any source, and a clear statement that broker fees and commissions are fully negotiable.

3. Applicability: Written agreements apply to both in-person and live virtual home tours. You do not need a written agreement if you are just speaking to an agent at an open house or inquiring about their services.

4. Seller Compensation: The seller may offer compensation to your agent, but this offer cannot be shared on a Multiple Listing Service (MLS). However, you can still accept concessions from the seller, such as offers to pay your closing costs.

These practice changes will go into effect on August 17, 2024.

What the Settlement Doesn’t Change:

• Support from REALTORS®: Agents who are REALTORS® remain committed to helping you navigate the homebuying process, working ethically and in your best interest.

• Negotiable Compensation: Compensation for your agent remains fully negotiable. If your agent is a REALTOR®, they must follow the REALTOR® Code of Ethics and have transparent discussions with you about compensation. When choosing an agent, ask about compensation and understand what services you will receive.

• Your Choices Matter: You have a variety of choices when buying a home. Work with your agent to understand these options, helping you make the best decision for your needs.

Stay informed about these changes to ensure a smooth and successful home-buying experience. If you’re ready to start your journey, contact us today for expert guidance and support.