As a homeowner preparing to sell, you have a variety of options for listing your property. REALTORS® are trusted advisors ready to assist you through this complex process, helping you make the best decisions for your unique situation. The recent National Association of REALTORS® (NAR) settlement has introduced several changes regarding broker commissions that are designed to benefit sellers. Here’s what you need to know.
What the NAR Settlement Means for Home Sellers
1. Choice in Offering Compensation to Buyer Brokers
- You can still choose to offer compensation to buyer brokers, which can be an effective strategy to market your home and attract more buyers.
2. Transparency in Compensation Offers
- Your agent is required to clearly disclose and obtain your approval for any payment or offer of payment to a broker acting for buyers.
- This disclosure must be made in writing before any payment agreement is made, specifying the amount or rate of compensation.
3. Changes to Compensation Listings on MLS
- If you decide to offer compensation, it cannot be listed on a Multiple Listing Service (MLS). MLS platforms are local marketplaces where both buyer and listing brokers share property information.
- Your agent can still promote your listing through off-MLS platforms such as social media, flyers, and websites.
4. Buyer Concessions on MLS
- You can continue to offer buyer concessions on an MLS, such as covering buyer closing costs.
These changes will take effect on August 17.
What the Settlement Doesn’t Change
1. REALTORS®’ Ethical Obligations
- REALTORS® remain committed to helping you navigate the home selling process and are ethically bound to work in your best interest.
2. Negotiability of Agent Compensation
- Compensation for your agent remains fully negotiable. If your agent is a REALTOR®, they must follow the REALTOR® Code of Ethics and engage in clear and transparent discussions about compensation.
- When selecting an agent, ask about their compensation structure and discuss what you are willing to offer buyers.
3. Your Choices in Selling Your Home
- You have a range of choices when selling your home. Collaborate with your agent to understand all your options, enabling you to make the best possible decision for your needs.
Conclusion
The NAR settlement introduces important changes designed to benefit home sellers, ensuring transparency and giving you more control over compensation decisions. REALTORS® are dedicated to guiding you through the selling process with integrity and expertise. By understanding these updates and your options, you can navigate the sale of your home with confidence and make informed decisions that best suit your goals.
