What Is A NAR Settlement? [ Learn The Truth In Realtors’ Commissions]
Over the last few weeks, there’s been a lot of miscommunication about the National Association of Realtors (NAR) lawsuit settlement. And what’s been told is that the 6% commission offered to realtors is completely going away and that’s actually not true.
The reality is, is that as long as I’ve known, sellers have always had the option to pay different kinds of commission for their realtors. It doesn’t have to be 6%. For example, if they want a high quality realtor, they may be looking to pay that 6% to get the full services and have a quality realtor.
But they may want limited services, which could also reduce the commission or if they do a lot of deals with this one realtor, they may get discounts with this realtor because they’re giving them a lot of business.
And so what typically happens is if the listing agent does get the listing at 6%, they will typically want to open it up for all realtors (if they have a buyer) to help them get the home sold and that way, they can fully service their client by giving them as many buyers a possible to get the home sold. And so if they have the listing at 6%, they will offer 3% on the MLS to offer 3% to the buyer’s agent.
And what’s going to change if this gets agreed to in July, is that no commission will be offered on the MLS. This doesn’t mean they can’t pay that to the buyer’s agent, it just won’t be disclosed.
Another important thing to keep in mind, is that anyone that’s looking to buy a home and they want to have representation by a buyer’s agent, they have to sign a buyer agency agreement before seeing any houses.
So if you have any questions, please leave a comment below, please share with anyone you think it’d be helpful to and as always, close with Patrice.
This has been “What Is A NAR Settlement? [ Learn The Truth In Realtors’ Commissions]” by Patrice Henderson of Designed Living Real Estate. Be sure to subscribe to her YouTube channels for all your real estate tips, home tours and advice.
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