What is the NAR settlement all about?

 

Lately, social media has been buzzing with discussions about how real estate agents are paid. This has sparked widespread attention, especially for buyers and sellers who need to understand what's going on.

The spotlight is on several lawsuits happening nationwide, all focusing on making realtor compensation clearer. Typically, sellers have always paid the buyer's agent's commission, with little room for negotiation. On the flip side, buyers have assumed their agent's fees were covered by the seller.

But these lawsuits are pushing for more transparency. They want sellers to be able to negotiate commissions with their agent, just like buyers can with theirs.

One big misunderstanding is that buyers think they don't pay commissions directly. However, in reality, it's the buyer's money that covers many costs in the home buying process, including the seller's agent's fee.

The National Association of Realtors (NAR) has proposed a $418 million settlement related to these lawsuits. While it's waiting for court approval, many in the industry expect changes to come. These changes could start in July 2024, potentially reshaping how real estate deals are done.

Keep yourself informed as we go through these changes together. It's all about making sure everyone involved in real estate transactions understands what's happening and feels empowered in the process.