In March, the National Association of Realtors (NAR) agreed to a $418-million settlement to settle several pending lawsuits alleging that NAR members used business practices that kept commissions artificially high and drew compensation from the seller for services given to the buyer. There are two key provisions to the settlement that take effect as of August 17, 2024.
The MLS will no longer be a platform for communicating offers of compensation.
Real estate professionals still have several methods for negotiating and communicating offers of compensation, including:
- Marketing – If the listing broker or seller is offering compensation for the buyer’s broker, the listing agent can share that offer through their marketing.
- Website – A broker can show offers of compensation for their listings on their website; although brokers must not display offers of compensation for other broker’s listings.
- Seller concessions: Sellers may elect to offer concessions to the buyer that can be used for things like paying for the buyer’s closing costs or the commission for the buyer’s agent.
- Negotiations: Buyers may request that their agent include broker compensation as part of the terms of a purchase offer.
Buyer-broker agreements are required.
Agents must have a written agreement with a client to work with them as a buyer’s agent. Some ways this may play out, include –
- Buyers may choose to only contact listing agents directly (who can show their own listing without a buyer-broker agreement) and bypass working with a buyer’s agent.
- On the other hand, a new sub-specialty of real estate agents could emerge, one who works with buyers exclusively.
The only certainty is that how this will affect the market is still unknown. And the impact will not just be on real estate brokers and agents, but those in supporting industries like mortgage and title as well. Industry experts seem to agree that the changes will push title and mortgage companies to become even more innovative and service-focused to capture and maintain business.
At BesTitle, we believe that we stand out from others in our industry due to our genuine, professional service and exemplary communication throughout the process. We pride ourselves on being a trusted partner serving lenders, realtors, and neighbors through cutting-edge technology, streamlined processes, and caring team members.
In fact, BesTitle has completed tens of thousands of real estate transactions since 1991. And not only does our team feel like family, but we also extend that personal touch to each one of our clients, placing a high value on the relationships that we build throughout our communities.
Whatever the impact of the NAR Settlement is on the overall real estate industry, we are ready for the changes and prepared to provide an even higher level of service to real estate professionals moving forward to receive referrals.
BesTitle has been serving Ohio, Kentucky, and West Virginia for over 30 years. We believe that everyone deserves an easy, safe, and stress-free real estate transaction. Contact us today to get started.