As REALTORS®, we understand that selling your home can be both an exciting and daunting process. It's a significant financial decision, and you deserve to have all the information you need to navigate it with confidence. Earlier this year, the National Association of REALTORS® (NAR) reached a settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. Not only do the settlement terms confirm transparency and the ability to negotiate, they also introduce some changes related to broker commissions. These changes are designed to benefit you, the home seller, by increasing transparency and ensuring you have more control over your home sale. These changes are scheduled to take effect on August 17, 2024, and here is a breakdown from NAR of what these updates mean for you.
You still have the choice of offering compensation to buyer brokers. You may consider doing this as a way of marketing your home or making your listing more attractive to buyers.
Your agent must conspicuously disclose to you and obtain your approval for any payment or offer of payment that a listing broker will make to another broker acting for buyers. This disclosure must be made to you in writing in advance of any payment or agreement to pay another broker acting for buyers, and must specify the amount or rate of such payment.
If you choose to approve an offer of compensation, there are changes to how this can happen. You as the seller can still make an offer compensation, but your agent cannot include it on a Multiple Listing Service (MLS)—MLSs are local marketplaces used by both buyer brokers and listing brokers to share information about properties for sale. Your agent can advertise your listing via off-MLS platforms such as social media, flyers and websites. You as the seller can still offer buyer concessions on an MLS (for example, concessions for buyer closing costs).
The above-described settlement practice changes go into effect on August 17. And to reiterate, many aspects of selling your home do not change moving forward. Agents who are REALTORS® are here to help you navigate the process of selling your home and are ethically obligated to work in your best interest.
Compensation for your agent remains fully negotiable, and if your agent is a REALTOR®, they must abide by the REALTOR® Code of Ethics and have clear and transparent discussions with you about compensation. When finding an agent to work with, ask questions about compensation and discuss what you would like to offer buyers.
You have choices. Work with your agent to understand the full range of these choices when selling your home, which will help you make the best possible decision for your needs.
As we move forward with these changes, rest assured that Realtors will continue to provide the trusted advice and support you need to achieve a successful home sale. More details about these changes and what they mean can be found at www.facts.realtor. If you have any questions about these new practices or how they might impact your selling experience, don't hesitate to reach out to your local Realtor. We are here for you every step of the way. #ThatsWhoWeR