HERE’S WHAT WE KNOW RIGHT NOW
The proposed new National Association of Realtors (NAR) agreement will no longer mandate that sellers make and display offers of compensation to buyer’s agents on the Multiple Listing Service (MLS). However, it does not prohibit such offers, leaving the decision to the seller’s discretion. NAR will require buyer agents to use representation agreements with their clients, promoting greater consumer transparency and ensuring buyer agents are compensated for their valuable services.
THE HEADLINES
“Sellers don’t need to offer compensation to buyer’s agents.”
The Reality
Choosing to help a buyer with commission or closing costs is solely the seller’s decision. Many sellers see value in doing so, believing it important to incentivize buyers to maximize their sales price. This can make their property more attractive to a wider pool of buyers by alleviating out-of-pocket costs. Sellers also recognize they are better protected with a clear path to a smooth transaction when buyers are represented by an agent.
THE HEADLINES
“Home buyers and sellers won’t have to pay a standard commission anymore.”
The Reality
There is no standard commission; commissions are negotiable, and they always have been. These changes will simply make the commission process more transparent, ensuring clarity between the buyer’s agent and their clients from the outset.